SEC Suspends the Trading of Bitcoin and Ether Tracker one in the US
SEC Temporarily Suspends Bitcoin, Ether Exchange-traded Notes
The US Securities and Exchange Commission (SEC) on Sunday suspended the trading of Bitcoin Tracker One and Ether Tracker One. The two crypto-based securities were developed to track cryptocurrencies. However, SEC pointed out that the two did not have current, accurate and consistent information. Both exchange-traded notes are issued by a company called XBT which is based in Sweden. The company also has a subsidiary called Coinshares Holdings based in the United Kingdom.
Both the Bitcoin Tracker One (CXBTF) and the Ether Tracker One (CETHF) have been operational since 2015 when they were listed on the Nasdaq Stockholm exchange. However, the products have entered the US market last month under the name CXBFT. The entry enabled investors in the US to invest crypto exchange-traded notes. The trading is to be done in an over the counter market.
According to SEC:
“This commission has suspended trading in the CXBTF and CETHF because there has been confusion among market participants on the instruments. If any broker or dealer enters any market quotation which is in violation of the rule, the commission will consider the need for immediate enforcement action.”
This move has come barely a month after SEC rejected an application for Bitcoin Exchange Traded Funds famously known as ETFs. The ETF rejection has a huge impact on the cryptocurrency market which left the market participants’ discussion of the future of ETFs.
This latest decision by SEC seems to have had an impact on the crypto market. Bitcoin has gone down by 1.35% and is currently trading at $6,333 according to MarketCoinPrice. On the other hand, Ethereum had a higher impact going down by 4.23% to trade at $195.89. In general, all the top ten coins tumbled except Tether which rose by 0.4%. Decisions by the SEC seems to be causing a lot of volatility in the crypto sector.