[BREAKING NEWS]: SEC Suspends Trading in Bitcoin Tracker One (CXBF) and Ether Tracker One (CETHF)
Just moments ago, the U.S. Securities and Exchange Commission (SEC) decided to issue an Order of Suspension of Trading in Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF). The information has been revealed by the SEC on September 9 with the Release No. 84063.
The text informs that the suspension of these two instruments will be temporary. The suspension starts on September 9 and ends on September 20, 2018.
The decision has been taken by the SEC because of ‘confusion amongst market participants regarding these instruments.’
The Commission cautions investors about the situation and that they should carefully consider the foregoing information with all the information available issued by the company.
SEC Issues Order of Suspension of Trading in Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) https://t.co/5z1vEYFBFB
— SEC_News (@SEC_News) September 9, 2018
The CXBTF instrument allowed customers to enter the virtual currency market without having to invest in the physical asset. The Bitcoin Tracker One is regulated and listed in Sweden and has been traded on the Nasdaq Stockholm exchange during three years.
This investment option works as an American depositary receipt. An investor purchases the tokens and the asset will be available in US dollars. However, he actual processes are carried out in the local currency.
This is not an ETF, but instead an ETN, which is a symbolic of a debt that the issuer supports. It allows interested individuals to gain exposure to Bitcoin in a regulated environment in Europe.
Ether Tracker One works in a very similar way. It became available in 2017 as the first publicly traded, 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.
In a matter of minutes, Ether (ETH) lost almost 3% of its value and Bitcoin (BTC) lost 1.7%.