The Securities and Exchange Commission has issued an order suspending trading of Bitcoin Tracker One and Ether Tracker One, due to what the agency called “a lack of current, consistent and accurate information” that has caused confusion for market participants. The September 9 order halted trading of the two products until September 20.
The SEC found that broker-dealer application materials improperly characterized the products as exchange traded funds, or ETFs:
For example, 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.” CXBTF and CETHF are listed and trade on the NASDAQ/OMX in Stockholm and have recently been quoted on OTC Link (previously “Pink Sheets”) operated by OTC Markets Group, Inc.
According to CNBC, the two securities are listed on the stock exchange in Stockholm, Sweden. The products offer traders “exposure to the price performance of bitcoin and ether, the digital token of the Ethereum blockchain, with less fees.”