Involved are the Bitcoin Tracker One and Ether Tracker One exchange-traded notes, issued by XBT Provider AB, a Swedish-based subsidiary of the U.K. firm CoinShares. The suspension lasts through Sept. 20.
The Securities and Exchange Commission announced the temporary suspension of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) commencing at 5:30 pm EDT Sept. 9, 2018 and terminating at 11:59 pm EDT Sept. 20, 2018. https://t.co/5z1vEYFBFB
— SEC_News (@SEC_News) September 9, 2018
In the official order, the SEC said there is a “lack of current, consistent and accurate information” about these investment instruments, which is creating confusion.
Here’s one example, according to the SEC: “The broker-dealer application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as ‘Exchange Traded Funds.’ Other public sources characterize the instruments as ‘Exchange Traded Notes.’”
It probably didn’t help the SEC has shown a marked aversion to anything faintly resembling a cryptocurrency-based exchange-traded fund, having rejected or delayed proposals on 10 of them so far this year.