As per an new announcement made by the U.S. Securities and Exchange Commission ‘SEC’ yesterday, it has issued an order seeking to halt the trading of the Bitcoin Tracker One and Ethereum Tracker One exchange-traded notes, issued by XBT supplier AB which is a Swedish-based subsidiary of the U.K. firm ‘CoinShares Holdings’.
In the official order, the regulatory authority ‘SEC’ noted a “confusion amongst market participants” primarily based within the U.S. on the character of the financial instruments as the reason for this move.
The suspension would be effective as from 5:30 p.m. EDT Sep. 9, and would be lasting through 11:59 p.m. EDT till 20th September. Further, trading on non-U.S. exchanges won’t be interrupted throughout this suspension, the notice release advised.
Mentioning further, the notice release further stated that:
“The principal broker-dealer application materials submitted to offer the supply and sale of these financial merchandise within the U.S., including certain trading sites, characterise them as ETF’s. While several other public sources characterise the instruments as ‘Exchange traded Notes.’ In contrast, the establishment characterises them as ‘non-equity linked certificates.”
The SEC announcing its release cleared that it was entirely in the public interest and its mandatory line to always ensure the ‘protection of investors.’
The news comes nearly a month after, since the Nasdaq Stockholm exchange lived its products back in year 2015, creating a move to U.S. court, stating that they’d be quoted in U.S. U.S. Dollars starting in the mid of the month of Aug.
The CEO at CoinShares Holdings ‘Ryan Radloff’ aforementioned that:
“Everyone that is investing in U.S. dollars will be currently getting an exposure the products, whereas before this, they were solely obtainable in Euros or Swedish krona.”