The highly touted Bitcoin ETN is suspended by SEC

10 Sep, 2018
by Fifi Arisandi
The highly touted Bitcoin ETN is suspended by SEC

The SEC just released an official order to suspend the highly touted Bitcoin Tracker One and Ether Tracker One. 

When everyone was disappointed by the rejection of Bitcoin ETF last month, a Swedish company, XBT Provider expected to give a consolation by announcing their BTC ETN product started trading in USD. The product, called Bitcoin Tracker One allowed US investors to trade and track Bitcoin’s performance, and was said to be “a big win for Bitcoin” by the CEO.

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.

The commission ordered a suspension for all trading activities involving both products due to what they said as “a lack of current, consistent and accurate information.”

Several examples are mentioned on the official statement to explain the SEC’s “confusion”, such as “the broker-dealer application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as ‘Exchange Traded Funds’. Other public sources characterize the instruments as ‘Exchange Traded Notes’.  By contrast, the issuer characterizes them in its offering materials as ‘non-equity linked certificates’.”

The suspension, which the SEC said to be the “opinion of public interest” for the “protection of investors", takes effect starting September 9, 5.30pm EDT until September 20, 11.59pm EDT.

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