US SEC Temporarily Suspends Exchange-Traded Notes for Bitcoin (BTC) and Ethereum (ETH)


The U.S SEC has temporarily suspended the trading of Ether Tracker One (CETHF) and Bitcoin Tracker One (CXBTF), exchange-traded notes (ETNs) issued by a Stockholm-based subsidiary of CoinShares Holdings – XBT Provider AB. The U.S Securities and Exchange Commission issued the temporary suspension on Sunday, September 9th.

The Possible Reason for the Suspension

According to the official announcement, the U.S SEC identified varying languages used to describe the products, known as Ether Tracker One (CETHF) and Bitcoin Tracker One (CXBTF), which are issued by XBT Provider AB.

For instance, the application materials of the broker-dealer submitted to allow for the offer and sales of these products in the US categorize them as Exchange-Traded Funds (ETFs). The products are characterized as “Exchange-Traded Notes (ETNs)” by other public sources. By contrast, the dealer categorizes them in its offering application as “non-equity linked certificates.”

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Before it was made available in the United States last month, Bitcoin Tracker One and Ether Tracker One were listed and regulated in Sweden. Similar to ETFs, ETNs offers investors exposure to Ethereum (ETH) and Bitcoin (BTC). ETNs are technically not the same as ETFs. Exchange-traded notes are unsecured, they are issued by as senior debt notes.

By contrast, exchange-traded funds represent a stake in an underlying asset, offering investments into a fund that holds the commodities it tracks. Last month, the CEO of CoinShares Holding Ltd – Ryan Radloff said, “Everyone that is investing in USD can now be exposed to these products, whereas before, they were only available in Swedish Krona and Euros. Considering the present climate on the regulatory front in the United States, this is indeed a big win for Bitcoin (BTC).”

According to the SEC, the suspension is temporary, starting on the 9th of September 2018 at 21:30 (UTC) and ending on the 21st of September 2018 at 03:59.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.


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