Less than a month after making its debut in the U.S., the Bitcoin Tracker One (OTC: CXBTF) is facing suspension by the Securities and Exchange Commission (SEC).
Structured as an exchange traded note (ETN), the Bitcoin Tracker One product debuted in Sweden in 2015. Clearing and settlement of CXBTF is available in the Krona and Euro since the product is listed and regulated in Sweden. The ETN is issued by XBT Provider, which is a subsidiary of CoinShares.
In a statement out Sunday, the SEC said suspension of CXBTF and the Ether Tracker One (OTC: CETHF) will go into effect as of 5:30 pm Eastern time Sept. 9th and last until 11:59 pm Eastern time on Sept. 20th.
“The Commission temporarily suspended trading in the securities CXBTF and CETHF because of confusion amongst market participants regarding these instruments,” said the SEC. “This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).”
Another ETF Blow?
The debuts of CXBTF and CETHF in the U.S. were seen as potential precursors to widely anticipated bitcoin exchange traded funds (ETFs), a vehicle the SEC has consistently rejected. Last month, the SEC’s Division of Trading and Markets rejected applications from investment firms ProShares, Direxion and GraniteShares.
The SEC recently postponed their decision on a bitcoin ETF until late September. The ETF filing by investment firm VanEck and blockchain technology company SolidX could help reticent investors adopt Bitcoin as a legitimate investment opportunity if approved.
“The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company,” said the SEC in its Sunday statement.
Last week, the broader cryptocurrency space shed 17% of its market value, but optimism remains that a bitcoin ETF could come to life.
“Elad Roisman, the newly-appointed member of the SEC, could be the missing the piece in tilting the balance in favor of a bitcoin ETF approval. The new commissioner becomes the third Trump appointee to the SEC, succeeding Michael Piwowar, who stepped down in July. Roisman said in a statement that the SEC must re-examine its rules around blockchain and initial coin offerings,” according to CCN.
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