U.S. securities and exchange Commission suspends trading of Bitcoin and Ethereum ETNs of the XBT

U.S. securities and exchange Commission suspends trading of Bitcoin and Ethereum ETNs of the XBT

Home News U.S. securities and exchange Commission trading of Bitcoin and Ethereum ETNs of the XBT from

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Marcus Misiak –
10 Monday 2018

The American stock exchange Supervisory authority, the SEC has suspended the trading of exchange-listed Exchange traded Notes (ETNs) for Bitcoin and Ethereum, the XBT Provider temporarily. The temporary suspension of the two products of Bitcoin Tracker One, and ethers Tracker One was adopted on Sunday by the authority.

The Securities and Exchange Commission(SEC) announced the temporary suspension of trading of the Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) at 17:30 PM EDT on the 9th. September 2018 to start and to end at 23:59 EDT, 20. September 2018. The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in securities of the above mentioned company.

The cause for the suspension of the trade that seems not to be very serious. According to the official arrangement is shown, identified by the SEC an inconsistent language for the description of the products, which are as a Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) and of the Stockholm Provider XBT, a subsidiary issued by CoinShares Holdings,,.

This inconsistent language might lead, according to the American stock exchange supervision to confusion among market participants. In the arrangement, it says:

The Commission cautions Broker dealers, shareholders and prospective purchasers that they should consider the foregoing information along with all other currently available information and any information subsequently issued by the company carefully.

The SEC explained the inconsistencies in the categorization of the two products and stated that the application documents which were submitted, to enable the offer and sale of these financial products in the United States, as well as certain retail sites, the products as Exchange Traded Funds (ETF), while other “public sources” characterize the instruments as Exchange-Traded Notes (ETN).

Before CXBTF and CETHF were issued in mid-August in the United States, they were noted in Sweden and have been trading for 2015 on the Nasdaq Stockholm. Both products are an Exchange-Traded Fund (ETF) is very similar. While ETFs are, however, a Fund investment, an asset, such as stocks observed, resembles an ETN is a bond that is issued by an Institution as an unsecured bond. An ETN can be purchased currencies from investors, similar to Crypto, kept, or sold.

The output was viewed in August as a great achievement in the USA, as the long-awaited approval of a Bitcoin will materialize, ETF. The request by the Winklevoss twins has been thrown out of the SEC and the decision on the Bitcoin VanEck / SolidX ETF has been postponed until the end of September.

Ryan Radloff, CEO of the parent company CoinShares Holdings Ltd. said at the time to the advantages of the ETN’s for US investors (freely translated):

Everyone who invests in dollars, can now get access to these products, while they were previously only available in Euro or Swedish crowns. Given the current climate on the regulatory front in the US, this is a big win for Bitcoin.