SEC Temporarily Suspends Bitcoin (BTC) and Ethereum (ETH) ETNs
The U.S. Securities and Exchange Commission announced Sunday that it would temporarily suspend the trading of two exchange-traded notes (ETNs), Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF).
The Securities and Exchange Commission announced the temporary suspension of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) commencing at 5:30 pm EDT Sept. 9, 2018 and terminating at 11:59 pm EDT Sept. 20, 2018. https://t.co/5z1vEYFBFB
— SEC_News (@SEC_News) September 9, 2018
The ETNs, which have been trading on the Nasdaq Stockholm exchange for a number of years and were available to U.S. investors directly through USD trading pairs, were targeted by the SEC due to “a lack of current, consistent and accurate information,” according to the official release.
In the release, the SEC provided a specific example of the type of misinformation that caused them to make the ruling. It states that the broker-dealer application and certain trading sites characterize the ETNs as exchange-traded funds (ETFs), while the issuer characterizes them as “non-equity linked certificates” in the offering materials.
Ultimately, this decision is very much aligned with the Commission’s previous decisions around other rulings, which commonly cite concerns regarding investor awareness and market manipulation. The next major decision for the SEC is slated for September 30, where it will rule on the VanEck/SolidX ETF backed by Bitcoin (BTC).
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.