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The incredible bitcoin series of 2017 has moved in the opposite direction this year. And whenever the cryptocurrency seems ready to bounce, a new problem appears.
Monday afternoon, bitcoin was trading at $ 6,270, not far from its $ 5,785 dip for the year. The latest drop came after the Securities and Exchange Commission forced a halt to two bitcoin and ether-linked securities, the second most valuable electronic money. According to coinmarketcap.com, the global cryptographic market was $ 194 billion at the beginning of the year.
Bitcoin fell 14% last week.
On Sunday, the SEC temporarily suspended trading on two exchange-traded notes, similar to exchange-traded funds, or ETFs, which trade on US markets. ETN crypto – known as Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) – are the latest Wall Street products designed to allow traders to bet on digital assets without buying them directly. (The direct purchase of digital parts is risky in part because the exchanges continue to be hacked.)
The two Tracker products were first launched on Nasdaq Stockholm by a company called XBT Provider AB, with the launch of bitcoin one in 2015. They arrived in the US last month under the name of F shares. F shares, unlike securities that are beginning to be traded in the United States and need to be reviewed by the SEC, are approved by the regulatory authority for the self-regulation industry, Finra. They exchange US dollars but are held abroad.
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These factors make them somewhat difficult for the average investor to understand, and the SEC stated that it had ceased trading "because of confusion among market players regarding these instruments". The agency refused to develop its reasoning. The stop is in place until shortly before midnight on September 20th.
XBT Provider explained in a blog post that the stop of the negotiations did not apply to its Stockholm-listed shares and that the company "did not ask for registration or negotiation of these securities in the United States and has no liability to provide to the United States. market participants. "The responsibility for providing information on these securities rests with the broker, notes the company. Brokers continuing to issue securities in the United States may face enforcement action from the SEC.
The SEC has refused to approve several applications for bitcoins ETFs, in part because bitcoin exchanges remain vulnerable to manipulation and there is no adequate monitoring mechanism to monitor these exchanges . ETN trackers and other securities, known as Bitcoin Investment Trust(GBTC), allowed institutional investors to sample bitcoin. These securities are trading somewhat differently from an ETF, and investors probably need a deeper understanding before buying.
Some leaders in the digital parts market are not worried about the recent drop in prices. Andy Bromberg, president of Coinlist, a digital token sales platform, said in an email to: Barron that "the large movements of a small number of traders have the capacity to move markets significantly".
"These transactions can be the result of fundamental decisions or reactions to small information," he said. "We should not put too much stock in the short-term movements of these markets until they reach a more advanced stage of development, focusing today on long-term and long-term trends. .
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