The US Securities and Exchange Commission (SEC) has temporarily halted trading in exchange-traded notes (ETN) Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF).
With an official release issued September 9, the SEC announced the temporary suspension of exchange-traded notes dubbed Bitcoin Tracker One and Ether Tacker One.
Bitcoin Tracker One has been traded the Nasdaq Stockholm Exchange ever since 2015 but it wasn’t until August this year they became available for US investors. Bitcoin Tracker One was offered by a parent company of CoinShares Holdings, LTD.
According to Fundstrat’s co-founder and head analyst Tom Lee, ETN products reveal many similarities with the much awaited Bitcoin ETF. Trading the ETN resembles purchasing an American depositary receipt. This means that the trader will see a foreign-listed asset in US dollars.
While the trades are executed in US Dollars, they are cleared, settled, and held in custody in the home market, which, when it comes to Bitcoin Tracker One, is Sweden.
According to legal expert Jake Chervinsky, however, the problems the SEC is facing is with the CXBTF and CETHF trackers themselves, not with bitcoin or ether.
“As the full SEC order of suspension explains, the issue is “a lack of current, consistent and accurate information” on these products, such as whether they are ETFs, ETNs, or something else,” Chervinsky tweeted.
Indeed, the official release reads:
The Commission temporarily suspended trading in the securities CXBTF and CETHF because of confusion amongst market participants regarding these instruments.
In the meantime, Bitcoin $6325.75 -0.3% continues to dominate the entire cryptocurrency market. At the time of writing, Bitcoin dominance, the digital currency’s market cap share of the entire market, is 55.6 percent – the highest it has ever been since December 17, 2017.