A highly touted investment instrument that sought to appeal to U.S. public markets investors looking for cryptocurrency exposure has just seen a setback.
Announced on Sunday, the U.S. Securities and Exchange Commission (SEC) has issued an order seeking to suspend the trading of the Bitcoin Tracker One and Ether Tracker One exchange-traded notes, issued by XBT Provider AB, a subsidiary of CoinShares Holdings.
In the official order, the SEC cited a "confusion amongst market participants" as to the nature of the financial instruments as the reason for the move.
"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.' By contrast, the issuer characterizes them in its offering materials as 'non-equity linked certificates,'" the release reads.
The SEC went on to say that the decision was in "the public interest" and that it was line with its mandate to ensure the "protection of investors."
The suspension is to begin at 5:30 p.m. EDT on September 9, 2018, through 11:59 p.m. EDT on September 20, 2018.
The news comes nearly a month after the products, live on the Nasdaq Stockholm exchange since 2015, made a move to court U.S. investors, announcing that they would be quoted in U.S. dollars starting August 15.
Billed as a "soft opening" in press coverage by Bloomberg, the products were contrasted with more sophisticated exchange-traded fund (ETF) products which had recently been shot down by regulators, as being a more immediate way to access crypto exposure with dollars.
"Everyone that's investing in dollars can now get exposure to these products, whereas before, they were only available in euros or Swedish krona, Ryan Radloff, the chief executive officer at CoinShares Holdings said at the time.
Representatives from CoinShares Holdings were not available for comment at press time.
SEC image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Jiang Zhuoer: BTC.Top Will Support the Camp Favored by a Majority of Hash Power in the Bitcoin Cash Hash War
Jiang Zhuo’er and his BTC.TOP , a major Chinese mining pool, will not take side in the upcoming Bitcoin Cash’s hash war between two competing camps, Bitcoin ABC and Bitcoin SV. Zhuo’er shared h
F2Pool Will Support the Mining of BCHABC and BCHSV after Bitcoin Cash Hard Fork
F2Pool, the sixth largest bitcoin mining pool in the world, announced on Tuesday that it will allow miners to mine both coins generated from the upcoming Bitcoin Cash hard fork after the chain split
IBM Says Blockchain Can Power 'Open Scientific Research' in New Patent Filing
A patent application published Thursday claims the process of conducting scientific research can benefit from the blockchain.
Led by a team at IBM's Watson Research Center, the patent application p
CFTC Fines Bitcoin Trader $1.1 Million for Crypto Fraud
The U.S. Commodity Futures Trading Commission (CFTC) has jailed a bitcoin trader and fined him over $1 million for running a fraudulent bitcoin and litecoin scheme.
According to a press release iss
Japanese Firms Claim Success in Marine Insurance Blockchain Trial
One of Japan's largest insurance companies, Tokio Marine & Nichido Fire Insurance, and IT firm NTT DATA have completed a trial that put the paperwork for marine cargo insurance claims on a blockchain.
Accenture Puts Software License Management on a Blockchain Platform
Global professional services giant Accenture has rolled out a new software license management application built with tech from distributed ledger startup Digital Asset.
Accenture announced in a pre
Singapore's Central Bank, SGX Develop Blockchain Settlement System
The Monetary Authority of Singapore (MAS) and the country's stock exchange, Singapore Exchange (SGX), have developed a settlement system for tokenized assets that can work across different blockchains
Colorado Regulators Crack Down on Four More ICOs
Colorado regulators took action against four ICOs Thursday, bringing the state's total number of cease-and-desist orders against crypto startups to 12.
The state's "ICO Task Force" rebuked Bitcoin