The bitcoin and ether exchange-traded notes have been suspended by the Securities and Exchange Commission (SEC). The much-touted instruments were viewed as revitalizing to the cryptocurrency industry after the previous SEC delay on a number of bitcoin ETFs.
The delay on bitcoin and ether exchange traded notes
The name of the bitcoin and ether exchange-traded notes are CXBTF and CETHF respectively. The crypto-financial instruments were issued by XBT Provider AB, a Swedish subsidiary of UK-based Coinshares.
The reason for the temporary suspension as per the official SEC release was that there was “confusion among market participants” regarding these instruments. The SEC further indicated that the decision was in the public interest and necessary to protect investors. The SEC announced on September 9th via Twitter that –
“The Securities and Exchange Commission announced the temporary suspension of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) commencing at 5:30 pm EDT Sept. 9, 2018 and terminating at 11:59 pm EDT Sept. 20, 2018.
Skepticism among the public
Some of the comments underneath the Twitter announcement were less than flattering of the SEC decision. The bitcoin and ether exchange-traded notes were largely viewed as positive in terms of boosting the crypto market, which has taken quite a beating in recent weeks. As per Twitter –
Liberty.Crypto.Holo – “It’s always cool to see the US Government’s attempted market manipulations on a Sunday. Just kidding. It’s pretty lame actually. #cryptocurrency is a global market. You can’t control it. Stop trying.”
Wanttheloafnotcrumbs – “SEC is not here to help investors, its obvious. Sheep owned by big money. Release news on Sunday before the close? Comical.”
DMH – “I wish they were this worried about people investing in penny stocks. What a joke.”
The suspension on the trading of bitcoin and ether exchange-traded notes comes amid widespread market carnage and extreme volatility in the crypto market. Many hopes were riding on these ETNs, as they provided a way for investors to gain exposure to bitcoin and ETH without purchasing them directly. Bloomberg described the ETNs as a “soft opening” for ETFs. Investors and cryptocurrency enthusiasts will have to wait, and in the meantime, many are claiming market manipulation and calling the delay unjustifiable.
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