The U.S Securities and Exchange Commission (SEC) stopped trading in two cryptocurrency related products due to confusion over the nature of their financial products. The news came on Sunday, September 9 in a notice on SEC’s website ordering the two to close shop until september 20 2018.
According to the post, the security watchdog has suspended two securities namely; Bitcoin Tracker One and Ether Tracker One. In the notice, SEC claims that application materials and trading websites provided by the two companies characterize them as exchange-traded fund and not securities.
“It appears … that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One (Ticker Symbol: CXBTF) and Ether Tracker One (Ticker Symbol: CETHF, resulting in confusion amongst market participants regarding these financial instruments.”
The authority claims that the suspension is aimed at protecting the investors and the public. SEC believes that the two products have been violating set regulations. According to reports, the two products listed on the Nasdaq Inc (NDAQ.O) exchange in Stockholm, promised to track the prices of cryptocurrencies, with fewer fees. However, both products have been trading over the counter in transitions that occur off exchanges within the United States.
The owner of Bitcoin Tracker One and Ether Tracker One, XBT Provider AB SE0010296574.St and its parent company, CoinShares have not made a comment to any news site regarding the matter. CoinShares is an investment firm based in London.
Since its creation, SEC has taken a strict stand against letting ETFs tracking bitcoin and other on cryptocurrencies come to the market. Many have tried to fill applications to have the authority grant them the needed approval but their efforts seem to go in vain. SEC keeps rejecting and postponing their decision on the matter. According to records, SEC has rejected nine bitcoin ETF applications. ProShares, GraniteShares, and Direxion filed these applications.
In July, SEC rejected a proposed by the Winklevoss twins to list their Bitcoin ETF on a regulated exchange. This was the second time the authority had rejected the proposal. To support their decision the authorities stated that Bitcoin markets were uniquely resistant to manipulation.
SEC is yet concluded on whether or not to approve the VanECK and SolidX proposed ETF. The authority is expected to make a decision on September 30 2018.