The US’s Securities and Exchange Commission (SEC) has suspended the trading of Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF) issued by XBT Provider AB in Sweden, citing a lack of current, consistent and accurate information which has resulted in confusion amongst market participants regarding these financial instruments.
The SEC writes: “For example, the broker-dealer application materials submitted to enable the offer and sale of these financial products in the US, 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.
“The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above quoted company.”
The suspension is for the period from 5:30 p.m. EDT on September 9, 2018, through 11:59 p.m. EDT on September 20, 2018.
The SEC writes that during such trading suspension, however, a broker-dealer may engage in activities within the US solely for the purpose of assisting non-broker-dealer customers with the liquidation of owned positions held as of the date of this order in a transaction (or series of transactions ending with a sale) effected on the Nasdaq Nordic or other trading platform located outside the US or with non-US persons located outside the US including the issuer.
The Commission also cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the information along with all other currently available information and any information subsequently issued by the company.
The SEC writes: “Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule.”
The SEC warns that if any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.
At the time of posting this story, etf express had received no reply to a request for comment from XBT Provider and the firm had published no statement on its website or in a press release.