SEC Immediately Shuts Down The Trading In Two Cryptocurrency Products
Under suspect, the US Security and Exchange Commission stop trading in two crypto products used to track cryptocurrencies. It is assumed that these products are ETF (exchange-traded funds).
As per the report, the US SEC halt trading in Bitcoin Tracker One and Ether Tracker One in the US till the 20th of September. Both crypto products are listed on Nasdaq Inc exchange in Stockholm. It seems that their trading happens out of the exchange in the US. The user uses these products as they promise to track the prices of cryptocurrencies with a minimum fee.
The XBT provider AB and it’s parent company who is the issuer of Bitcoin Tracker One, and Ether tracker One do not respond immediately to the emailed request for the comment. Nasdaq refuses to comment. The legal experts say that SEC has an issue with CXBTF and CETHF, not with the Bitcoin and Ether.
The SEC is very rigid against the use of ETF tracking Bitcoins and other virtual currencies. The US Security and Exchange Commission stated that any cryptocurrency that is not registered with SEC considered false. But investment companies are in favor of launching crypto ETF which facilitate the investors to invest in cryptocurrencies as a regular stock easily.
The notice appears on the SEC website mention that there is a lack of current, consistent and accurate information. The Application material submitted to enable the offer and sale of such financial products in the US market. A few virtual currency websites name it an Exchange-Traded Funds (ETF).
The ETN is the form of the debt security and should not be confused with ETF as both are two different products.
The SEC applies temporary suspension for both the products to get some time to meet with the US brokers to tell them to take some steps to secure the investors.