The U.S. Securities and Exchange Commission (SEC) has just issued an Order of Suspension of Trading in Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), taking the crypto market by surprise. Though the suspension seems to be temporary the volatile price points of the token involved have fallen considerably.
On September 9, with the Release No. 84063. the SEC reveals the aforementioned information decision. As per the text, the suspension of the two instruments starts on September 9 and ends on September 20, 2018. The commision cites ‘confusion amongst market participants regarding these instruments,’ as the reason for the suspension. The aim is to bring the situation to investors notice and caution them that they should carefully consider the foregoing information with all the information available issued by the company.
The CXBTF
The Bitcoin Tracker One enables the customers to enter the virtual currency without having to invest in the physical asset market. The instrument is regulated and listed in Sweden and has been traded on the Nasdaq Stockholm exchange during three years.
It works as an American depositary receipt. The investor purchases the tokens and the asset will be available in US dollars. However, the actual processes are carried out in the local currency. So, this is not an ETF but an ETN, which is symbolic of a debt that the issuer supports. It allows interested individuals to gain exposure to Bitcoin in a regulated environment in Europe.
SEC Issues Order of Suspension of Trading in Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) https://t.co/5z1vEYFBFB— SEC_News (@SEC_News) September 9, 2018