XBT Provider Issues Bitcoin and Ether Tracker One SEC Crackdown Clarification
XBT Provider AB Issues a Clarification After the SEC Crackdown on its Bitcoin & Ether Crypto-Referenced Securities!
The Securities Exchange Commission (SEC) crackdown on digital affiliated assets has caught a good number of market participant off-guard. XBTPROVIDER, a Swedish based CoinShares company has released a clarification after the SEC stopped its products; Bitcoin Tracker One and Ether tracker One from trading in the US markets. The two securities are currently listed on the Nasdaq Stockholm market and are still being traded; XBT Provider AB made it clear that the only jurisdiction affected is the US.
According to the release, XBT Provider believes that the action to stop the Bitcoin & Ether tracking certificates trading was caused by probable confusion. The SEC thoroughness standard on description of digital assets is something XBT Provider was still lacking behind on.
On its defense, XBT Provider argued that they had not acquired any licenses to sell their securities in the US market. Therefore, it was not within their obligation to provide information about the tracking certificates to the US market. However, the team has acknowledged that they understood that the SEC Act Rule 15c2-12 implies that market makers that issue this type of digital assets have the responsibility to provide information on the shares.
A Brief Description of XBT Provider AB
As mentioned earlier, XBT Provider AB (Publ) is based in Sweden and operates within the financial markets space. The company’s activities and products leverage the new cryptocurrency technology as a cutting-edge. XBT Provider AB has issued a couple certificates built to track the performance of the underlying digital asset. For instance, the Bitcoin Tracker One (COINXBT:SS) tracks the BTC coin performance while the Ether Tracker Euro checks the ether stats in Euro.
The year 2015 marked a great milestone for the Nasdaq Stockholm exchange after it integrated crypto-affiliated assets in its market. Bitcoin Tracker One became the pioneer BTC-referenced share that could be traded on a recognized exchange. On the other hand, Ether Tracker One pioneered Ether-referenced shares that will be traded in future as blockchain and crypto take the decade!
XBT Provider operates within the Swedish law; the company’s prospectus has an approval from its local regulator ‘Swedish Financial Supervisory Authority’. This is not to mean that the entity’s licenses scale to the provision of financial advisory. XBT Provider via its Board has clarified that the company is just an intermediary hence cannot provide any cryptocurrency advise.
In addition to the above sentiments, XBT provider also said tha t their underlying reference crypto coins; Bitcoin and Ether are both highly volatile. It therefore follows that investors would expect as much movement in their certificates price as is the movement of BTC or Ether. Investors ought to carefully analyze their positions and the amount of risk they can accommodate before joining the XBT Provider bandwagon. Furthermore, reading the XBT provider prospectus before joining would help one know what risks the investment is attached to.
What investors need to understand about the nature of XBT provider certificates is that they bear no claim on an underlying digital asset. Instead, the investment changes based on the price action in the market i.e. movement in Forex & Crypto markets that affect the affiliated currencies.
The return on investment from XBT certificates is quite different from the concept of investing in shares directly and being paid dividends. These crypto-referenced assets depend on the performance of Bitcoin and Ether which means they operate on gain in value basis as opposed to interest terms. Finally, the shares (certificates) provided by XBT are unsubordinated, unsecured and non-principal protection.