Suspension of Exchange traded Bitcoin and Ether Investment Vehicles by SEC


The renowned investment vehicles solicited to U.S. public markets investors focusing on cryptocurrency exposure has been restricted recently.

The U.S. Securities and Exchange Commission (SEC) on Sunday issued an order that restricted the crypto-based trading like 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 Holdings. Based on the officer order issued by the SEC, it reported a ‘Confusion amongst market participants’ in the U.S. considering the fact of the nature of the financial vehicles in place.

The suspension effected as on 5.30 pm EDT on 9th September and will continue through 11.59 pm EDT 20th September. Additionally, trading activities on the non – U.S. exchanges will not be disrupted during the time of suspension.

The excerpts from the officially released statement:

“The broker-dealer application materials submitted to enable the offer and sale of these financial products in the U.S., as well as certain trading websites, characterize them as ‘Exchange Traded Funds.’ Other public sources characterize the instruments as ‘Exchange Traded Notes.’ By contrast, the issuer characterizes them in its offering materials as ‘non-equity linked certificates.”

The SEC said that the decision was in the public interest that protects investors as its mandate. The news was publicly announced a month after the products became live on the NASDAQ Stockholm Exchange since 2015 while moving to court U.S. investors affirming that they would be quoted in U.S. dollars beginning from 15th August.

The press coverage by Bloomberg citing a soft opening for public markets especially for crypto trading, the instruments were differentiated with the highly sophisticated ETF products that have been restricted by regulators by evaluating some other ways that help access crypto exposure with dollars.

Amidst all this, Ryan Radloff, the CEO of CoinShares Holdings said in his statement that “Everyone that’s investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona.”

It is highly recommended to use new age technology and cryptocurrencies cautiously in a fair and transparent manner that benefits all those involved in the entire process!!

Shalin Soni

Shalin joined CryptoNewsZ as Associate Finance (Cryptocurrency Research & Analysis) in 2018 and has 10 years of collective experience to work on financial modeling and financial planning & analysis activities (fp&a) domains. He has worked with various organizations in India and added values by leveraging his skills and expertise. He has strong domain expertise in research & analysis, valuation, and fp&a!! You can also mail him at [email protected] to discuss anything related to his reports.
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