SEC halts trading in two cryptocurrency products, citing market confusion

Cryptocurrency prices remained under pressure today

Cryptocurrency prices remained under pressure today

The U.S. Security and Exchange Commission (SEC) on Sunday issued an official notice announcing that it has temporarily suspended trading in Exchange-traded notes (ETN) - Ether Tracker One (CETHF) and Bitcoin Tracker One (CXBTF) until September 21. In a statement, the agency halts trading in Bitcoin Tracker One and Ether Tracker One in the U.S. until at least September 20.

Besides this, Ryan Rabaglia, Head of Cryptocurrency trading firm, OSL in Hong Kong said, "The temporary suspension of these products led to an initial knee-jerk reaction".

The official announcement states that Bitcoin Tracker One and Ether Tracker One were described as "exchange traded funds" (ETFs) on the broker-dealer application materials required prior to availability in the U.S., as well as on "certain trading websites".

As Reuters reports, the SEC "has taken a strict stance against letting ETFs tracking bitcoin and other cryptocurrencies come to market", reflecting concerns that the bitcoin market is too loosely structured and lacks protections against fraud and manipulation to merit an exchange traded fund or product.

This story was published by MarketWatch. The ETNs have traded on the Nasdaq Stockholm exchange in Swedish kroner since 2015. One product was created to track the price of bitcoin while the other was created to track the price of Ethereum.


The issuer, however, characterized them in the offering material as "non-equity linked certificates".

The agency defines ETFs as registered investment companies that provide investors a way to pool their money in a fund that invests in stocks, bonds, or other assets.

The American Securities and Exchange Commission (SEC) has intervened in the world of cryptocurrency again, with an announcement that it's suspending trading in a pair of investment products. Rather, it is our understanding that, under Securities Exchange Act Rule 15c2-12 any broker-dealer that issue quotations for these securities is responsible for ensuring that required information regarding these securities is available. The SEC issued the suspension notice yesterday as the investment instrument sought to appeal to USA public markets investors as an alternative to Bitcoin ETFs.

"Everyone that's investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona". Ether fell down to $199.05 and Bitcoin burrowed to $6.313.51.

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