Bitcoin Tracker One as well as Ether Tracker One, two cyber-asset-related products are stopped from being traded. That’s the decision made by the American securities supervisor. The products got the red light due to a tangle linked with their essence.
ETF Jumble Causes The Halt of Ethereum-Related Products Trading
On the SEC’s site, it has been announced that two digital money-related securities — BTO and ETO — have been barred from trading due to the jumble over ETFs. The issue is that trading platforms, as well as broker-dealer application materials, refer to these securities as ETF, and the latter, as it is known, are not in the favour of the SEC.
It is worth mentioning that ETFs are listed funds which trace a number of assets. The American securities watchdog, in the meantime, labelled BTO and ETO "non-equity linked certificates,» as it was said by their issuer previously. Due to such inconsistency in the definition, the regulator has postponed the financial products purchasing and vending to not earlier than September 20.
The SEC stated that both of the crypto-related products issued by a Swedish entity XBT Provider AB are lacking precision intelligence in their regard which leads to misunderstanding among market actors. So as to protect the players, the regulator decided to halt trading to solve the ETF confusion.
What Are BTO and ETO?
As CNBC informs, the financial products’ issuer is a Swedish company owned by CoinShares, a UK-headquartered investment business. Both of its securities are admitted for trading on the Stockholm stock trading venue, which is a limb of Nasdaq's Nordic markets.
As the media outlet singles out, it has been expected this year that the financial product watchdog will approve of virtual money ETF, but this did not happen as numerous disapprovals and delays occurred.