SEC suspends trading in two crypto-linked securities

Lloyd Doyle
September 12, 2018

As per the official notice, the SEC distinguished conflicting information used to depict the items, known as Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF). Similar to ETFs, ETNs offers investors exposure to Ethereum (ETH) and Bitcoin (BTC).

The headway, however, has turned into a setback, with the announcement from the US Security Exchange Commission (SEC) on their decision towards Bitcoin Tracker One (ticker symbol CXBTF) and Ether Tracker One (ticker symbol CETHF) just now.

Jake Chervinsky, the legal expert said that the difficulty the SEC is dealing with is of the CETHF and CXBTF trackers itself, not with the Ether or Bitcoin. All four certificates are available and traded in the same manner as any other share or instrument listed on the Nasdaq exchange in Stockholm.

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Among other previous actions, the commission in July rejected another effort by entrepreneurs Cameron and Tyler Winklevoss to list a bitcoin-related exchange-traded fund and last month denied proposals for nine ETF filings filed by three companies. "ETNs are often confused with exchange-traded funds (ETFs)".

Amid this confusion as to what, exactly, is on offer here, the SEC said that for the sake of public interest and the protection of investors, a suspension in trading was necessary.

The suspension is reportedly in effect as of 5:30 p.m. EDT September 9, and will last till 11:59 p.m. EDT on September 20.

Because the two funds are listed on an actual stock exchange in Sweden, they historically have not traded at a large premium to the spot price of the underlying assets, unlike Grayscale Investments' Bitcoin Investment Trust (OTC: GBTC), which is available through most USA brokerages but is not listed on any exchange.

However, these notes are basically debt obligations of financial institutions.

According to Reuters, some of the ETF providers like BlackRock Inc have called upon the SEC to standardize terms such as ETF to clear the confusion that now exists in the market.

When ETNs became available to U.S. investors last month, the CEO of CoinShares Holdings Ltd, Ryan Radloff, stated that everyone that is investing using the United States dollars will gain exposure to the products. Bitcoin and ether are volatile assets and their prices (and the price of securities that are referenced to them) can move quickly, positively or negatively.

Other reports by Iphone Fresh

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