On September 9, the US Securities and Exchange Commission (SEC) issued an order seeking to suspend the trading of the Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) exchange-traded notes, issued by XBT Provider AB, a Swedish-based subsidiary of the U.K. firm CoinShares Holdings.
The move was made because of confusion amongst market participants regarding these instruments.
The suspension is in effect as of 5:30 p.m. EDT September 9, and will last through 11:59 p.m. EDT on September 20. Trading on other, non-U.S. exchanges will not be interrupted during the suspension.
“The broker-dealer application materials submitted to enable the offer and sale of these financial products in the U.S., as well as certain trading websites, characterize them as ‘Exchange Traded Funds.’ Other public sources characterize the instruments as ‘Exchange Traded Notes.’ By contrast, the issuer characterizes them in its offering materials as ‘non-equity linked certificates,” – the release reads.
The SEC went on to say that the decision was in “the public interest” and that it was line with its mandate to ensure the protection of investors.
“Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona,” – Ryan Radloff, the chief executive officer at CoinShares Holdings said at the time.