SEC suspends trading of two exchange-traded products based on cryptocurrencies

The US SEC has suspended trading in two cryptocurrency-based XBT Provider products. The regulator called the reason for this decision inaccuracies in the description of instruments that mislead market participants..

The SEC issued an order demanding to suspend trading in exchange-traded products of the Stockholm company for 10 days. Commission officials say that the descriptions of applications for Bitcoin Tracker One and Ether Tracker One on some sites characterize them as exchange-traded funds (ETF), and on others they are called exchange-traded bonds (ETN). According to the regulator, such inconsistency leads to confusion..

While derivatives have a lot in common, the SEC points out that there are fundamental differences between them. The situation is further complicated by the description of the issuer itself. XBT Provider refers to CXBTF and CETHF as non-equity certificates that have no fundamental security and no particular interest..

SEC suspends trading of two exchange-traded products based on cryptocurrencies

The instruments have been listed on Nasdaq / OMX in Stockholm and OTC Link. The products track the prices of their underlying cryptocurrency and were previously ETN recognized. In addition to limited tools, the company offers two others: Bitcoin Tracker Euro and Ether Tracker Euro.

While the American regulator is delaying the decision on bitcoin-ETF, Uzbekistan has legalized the activities of crypto-exchanges  and offered to allocate land plots to mining companies.

Author: Ivan Malichenko

SEC suspends trading of two exchange-traded products based on cryptocurrencies

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