The U.S. Securities and Exchange Commission (SEC) has suspended trading in two specific cryptocurrency-related products.
Both Bitcoin Tracker One and Ether Tracker One received notices of suspension by way of the SEC’s official website.
As reported by CNBC, the suspension comes as the result of apparent “confusion over the nature of the financial products.”
Though the products defined themselves as exchange-traded funds (ETFs) in their applications, the SEC now views both Bitcoin Tracker One and Ether Tracker One as “non-equity linked certificates.” As such, trading of both products must be halted until September 20.
As noted by CNBC, the SEC offered the following explanation:
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.
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.
Bitcoin ETF Decision Pending
The broader cryptocurrency community remains firmly focused on the upcoming VanEck SolidX Bitcoin ETF decision this month.
The last batch of Bitcoin ETF proposals was rejected by the regulatory agency, as was the Winklevoss’ Bitcoin ETF before them. The primary reasons for the applications’ rejections stem from concerns over market manipulation and financial fraud.
For example, the SEC stated that ProShares’ filer, NYSE Arca (an all-electronic exchange) “has offered no record evidence to demonstrate that bitcoin futures markets are ‘markets of significant size.’” Furthermore, “a national securities exchange’s rules [must] be designed to prevent fraudulent and manipulative acts and practices.”
Whether or not the VanEck SolidX Bitcoin ETF will be to the SEC’s liking remains to be seen.
What do you think of the SEC’s decision to suspend Bitcoin Tracker One and Ether Tracker One? Do you think the VanEck SolidX Bitcoin ETF will be approved, denied, or delayed? Let us know your thoughts in the comments below!
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