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 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
— U.S. Securities and Exchange Commission (@SECGov) September 9, 2018
Quite similar to the Bitcoin Tracker one in terms of working, Ether Tracker One is an ether-based security available in a regulated exchange. The certificates provided are non-equity linked securities traded in the same manner as any other instrument on the Nasdaq exchange in Stockholm. The Instrument became available in 2017.
As soon as SEC announced the suspension, Ether (ETH) lost almost 3% of its value and Bitcoin (BTC) lost 1.7% in a matter of minutes. An added worry that surrounds the Bitcoin ETF supporters is how will this affect on the impending decision for the Cboe VanEck SolidX Bitcoin ETF, on September 30, 2018.
Read more: Elad Roisman, A Pro-Crypto Confirmed By US Senate As SEC Commissioner
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