SEC Prohibits Trading in Two Cryptocurrency ETFs

The Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) is continuing its efforts to push back against cryptocurrency-based exchange traded funds (ETFs). This Sunday, the American regulator announced that it would prohibit trading, for US investors, in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term Tracker One and Ether Tracker One until at least the 20th of September 2018.

Listed on the NASDAQ/OMX exchange in Stockholm, investors in Bitcoin Tracker One and Ether Tracker One can track the BTC/USD and ETH/USD prices respectively. Both securities are provided by XBT Provider AB - a Swedish company, owned by CoinShares, with headquarters in Stockholm.

XBT Provider AB does not actually describe the two securities as ETFs. Instead it calls them “non-equity linked securities.” In contrast, the SEC released a statement noting that the securities have been described by others as ETFs or exchange traded notes.

“There is a lack of current, consistent and accurate information concerning Bitcoin Tracker One and Ether Tracker One,” said the regulator, “resulting in confusion amongst market participants regarding these financial instruments.”

Application denied - SEC and crypto ETFs

The SEC will not be issuing a total ban on the trading of the securities. According to the regulator’s statement, investors will be allowed to liquidate any positions they hold in the two securities.

Cryptocurrency ETFs have been a major bugbear for the SEC. Over the past couple of months, the regulator has rejected or delayed two serious applications for ETFs.

The Winklewoss twins, the famous Bitcoin billionaires, had an application rejected for a Bitcoin ETF in July. Anticipation surrounding the ETF had pushed the price of the cryptocurrency up by almost $2,000.

In September, the SEC delayed its decision regarding a Bitcoin ETF until the end of the month. The application was submitted by VanEck, an investment management firm based in New York.

The most recent news surrounding cryptocurrency ETFs came last Friday. As Finance Magnates reported, there are ongoing suggestions that BlackRock and CoinBase will be launching their own cryptocurrency ETF.