The cryptomarket is fumbling at the moment. The reason could be the US Securities and Exchange Commission’s (SEC) decision to cease trading on two exchange-traded notes or ETN’s.
The regulator has ceased XBT Provider’s trading of Bitcoin and Ether Tracker One securities but why?
SEC Ceases Trading on Two Exchange-Traded Notes
The SEC issued a notice that the two exchange-traded notes would stop trading until September 20th. The two affected notes are Bitcoin Tracker One, which trades under the code CXBTF, and Ether Tracker One, which trades under the code CETHF.
The reason given for ceasing the trade was “confusion” over the securities.
The SEC statement regarding the notes says the following:
“The Commission is temporarily suspended trading in the securities CXBTF and CETHF because of confusion amongst market participants regarding these instruments […] The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.”
XBT Provider operated the two ETN’s, starting in 2015 with the Bitcoin Tracker One. It became the first Bitcoin-based ETN available on a regulated exchange and debuted on Sweden’s NASDAQ.
Since those releases, XBT Provider has added Bitcoin and Ether Tracker Euro options.
The SEC is warning brokers over strict compliance requirements in enforcing its latest temporary ban:
“If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action,”
Featured Image: Deposit Photos/avemario
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