SEC suspends trading of two cryptocurrency products, citing market confusion

NEW YORK (Reuters) – The US Securities and Exchange Commission announced on Sunday that it was immediately suspending trading in two investment products that track cryptocurrencies, citing market confusion over whether funds are traded. in stock exchange.

The SEC said in a statement that transactions on Bitcoin Tracker One CXBTF.PQ CXBTF.PK and Ether Tracker One CETHF.PQ CETHF.PK would be suspended in the United States until at least September 20.

The products promise to track the price of cryptocurrencies, minus the fees. They are both registered on a Nasdaq Inc (NDAQ.O) trading in Stockholm, but trading "over-the-counter" in over-the-counter transactions in the United States.

"It seems that there is a lack of current, consistent and accurate information," the SEC said in a notice posted on its website. "The application documents submitted to allow the offering and sale of these financial products in the United States, as well as certain commercial websites, qualify them as" exchange-traded funds. "

The issuer of Bitcoin Tracker One and Ether Tracker One, service provider XBT AB SE0010296574.ST and its parent company, did not immediately respond to requests for comments via email. Nasdaq declined to comment.

The SEC has taken a strict stance against the possibility for ETFs to track the evolution of bitcoins and other cryptocurrencies.

However, investment firms have encouraged other types of investments that attempt to facilitate the trading of cryptocurrencies as ordinary stock.

These products are sometimes referred to as ETFs, but this term usually refers to a different and often more regulated product. Some industry experts, including the largest provider of BlackRock ETFs Inc. (BLK.N), called on regulators to standardize the terms used to describe ETFs and other types of investment products.

Virtual currency, including bitcoin and ether, can be used to move money quickly and with relative anonymity around the world, without the need for a central authority, such as a bank or government . A fund holding the currency could attract more investors and increase its price.