The U.S. Securities and Exchange Commission has suspended the exchanging of two XBT Provider items: Bitcoin Tracker One and Ether Tracker One. The office traits "an absence of present, reliable and precise data" which prompts "disarray among showcase members" as the reason.
SEC Suspends Trading of XBT Provider's Bitcoin Exchange-Traded ProductOn Sunday, September 9, the U.S. Securities and Exchange Commission (SEC) issued a "Request of Suspension of Trading" for two trade exchanged items issued by XBT Provider AB (publ), a Swedish organization headquartered in Stockholm.
The Commission expresses that "there is an absence of present, predictable and precise data" concerning Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF), "bringing about perplexity among advertise members with respect to these budgetary instruments." The items track the costs of their separate digital money.
Taking note of that the two instruments are recorded and exchanged on the Nasdaq/OMX in Stockholm and have as of late been cited on OTC Link worked by OTC Markets Group Inc., the SEC included:
The Commission is of the sentiment that the general population premium and the insurance of financial specialists require a suspension of exchanging the securities of the above cited organization.
In accordance with Section 12(k) of the Securities Exchange Act of 1934, exchanging the two securities "is suspended for the period from 5:30 p.m. EDT on September 9, 2018, through 11:59 p.m. EDT on September 20, 2018," the organization point by point.
ETF, ETN, or Non-Equity Linked Certificate?
The SEC continued to clarify the irregularities of how the two items are ordered, explaining:
The specialist merchant application materials submitted to empower the offer and offer of these budgetary items in the United States, and in addition certain exchanging sites, describe them as 'Trade Traded Funds (ETF)'.
The office characterizes ETFs as enlisted speculation organizations that offer speculators an approach to pool their cash in a reserve that puts resources into stocks, bonds, or different resources. Consequently, financial specialists get an enthusiasm for the store.
In any case, the Commission brought up that "Other open sources describe the instruments as 'Trade Traded Notes (ETN)'." Unlike ETFs, these notes are debt without collateral commitments of budgetary establishments that exchange on a securities trade. "ETN installment terms are connected to the execution of a reference file or benchmark, speaking to the ETN's speculation objective," the office portrays.
As indicated by the SEC:
ETNs are regularly mistaken for trade exchanged assets (ETFs). ETNs and ETFs are both exchanged on a securities trade and can be purchased and sold for the duration of the day, yet there are vital contrasts.
To entangle the issue further, the Commission noticed that "the backer portrays them in its offering materials as 'non-value connected authentications'," which XBT Provider says "are not primary ensured" and "don't bear intrigue."
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