SEC Suspended Bitcoin (BTC) Trading Product Of XBT Provider, Along With An Ethereum (ETH) One
The US SEC suspended two of the XBT Provider’s trading products, one for Bitcoin (BTC) and the other for Ethereum (ETH). The Bitcoin Tracker One and Ether Tracker One, both of XBT Provider, got banned by the US Securities and Exchange Commission due to “a lack of current, consistent and accurate information” which causes “confusion amongst market participants.”
Yesterday, on September 9th, the SEC published the new “Order of Suspension of Trading” targeting the suspension of two exchange-traded products operated by XBT Provider, a Swedish company based in Stockholm.
As mentioned, the SEC argued its decision by stating that there is “a lack of current, consistent and accurate information” regarding the Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), “resulting in confusion amongst market participants regarding these financial instruments.”
Both CXBTF and CETHF track the prices of the Bitcoin (BTC) and Ethereum (ETH), respectively.
The US SEC suspended two Bitcoin (BTC) and Ethereum (ETH) trading products of XBT Provider
“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-mentioned company,” stated the SEC.
The SEC describes ETFs as registered investments that provide traders with a method to put money together in a fund that invests in stocks, bonds, or other assets. The profit of the investors come in the form of receiving an interest in the fund.
On the other hand, there are the ETNs which the SEC defines as unsecured debt obligations of companies that trade on securities exchanges.
“ETNs are often confused with exchange-traded funds (ETFs). ETNs and ETFs are both traded on a securities exchange and can be bought and sold throughout the day, but there are important differences,” said the US SEC.
As for the XBT Provider’s Bitcoin (BTC) and Ethereum (ETH) trading product, the US SEC said that “the broker-dealer application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as ‘Exchange Traded Funds (ETFs).’”
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.