The U.S. securities watchdog has halted trading in two cryptocurrency-related products because of confusion over the nature of the financial products.
The securities, Bitcoin Tracker One and Ether Tracker One, were slapped with a suspension notice by the Securities and Exchange Commission (SEC) on its website.
The regulator said that broker-dealer application materials and trading websites characterized the products as exchange-traded funds (ETFs) - listed funds that track a basket of assets.
Instead, the securities are "non-equity linked certificates," the SEC said, citing the products' issuer. The SEC ordered trading to be halted until September 20.
"It appears … that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One (Ticker Symbol: CXBTF) and Ether Tracker One (Ticker Symbol: CETHF), issued by XBT Provider AB (publ), a Swedish company headquartered in Stockholm, resulting in confusion amongst market participants regarding these financial instruments."
It added: "The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above quoted company."
Both securities are listed on the Stockholm stock exchange, part of Nasdaq's Nordic markets, and promise exposure to the price performance of bitcoin and ether, the digital token of the Ethereum blockchain, with less fees.
XBTProvider is owned by London-based investment firm CoinShares. CoinShares was not immediately available for comment when contacted by CNBC. Nasdaq had not returned a request for comment at the time publication.
Investors have been hopeful that the SEC will grant a cryptocurrency ETF this year, but have been left disappointed by multiple rejections and postponements.
This year, the regulator has rejected a fund proposed by Cameron and Tyler Winklevoss, postponed a conclusion on whether to approve VanEck and SolidX's proposed ETF and blocked several other proposals.
The commission will decide whether to approve or disapprove the VanEck and SolidX Bitcoin Trust ETF on September 30.
Approval of an ETF product for cryptocurrencies would likely lift optimism around the arrival of institutional investors into the industry. Futures contracts for bitcoin were introduced last year.
Cryptocurrencies have in recent times risen and fallen dramatically, with the world's largest, bitcoin, surging close to $20,000 late last year, only to fall to around $6,300 as of Monday.
via IFTTT
No comments:
Post a Comment