SEC stated that the suspension order was issued following confusion amongst market participants based in the US regarding the nature of the financial instruments.
The US Securities and Exchange Commission (SEC) has issued an order for suspension of trading of Bitcoin Tracker One and Ether Tracker One exchange-traded notes. These cryptocurrencies were issued by XBT Provider AB, a Swedish-based subsidiary of UK firm CoinShares Holdings.
SEC stated that the suspension order was issued following confusion amongst market participants based in the US regarding the nature of the financial instruments. The suspension was in effect from 5:30 p.m. Eastern Daylight Time (EDT) on 9th September and would continue through 11:59 p.m. EDT on September 20th, as per a report in Coindesk.
The products went live on the Nasdaq Stockholm exchange in 2015.
According to the SEC, the decision was made in public interest and was in line with its mandate of protection of investors. However, trading on other, non-U.S. exchanges will not be interrupted during the suspension.
The cryptocurrencies are termed as Exchange Traded Funds (ETFs) by the broker-dealer application materials submitted to enable the offer and sale of these financial products in the US, as well as certain trading websites.
Some other public sources characterise the instruments as Exchange Traded Notes while the issuer characterizes them in the offering materials as non-equity linked certificates.This has provided a setback to the highly touted investment instrument that was planning to attract US public markets investors.