SEC Suspends Trading In Two Crypto-Related Products
The U.S. Securities and Exchange Commission (SEC) stated that trading in Bitcoin Tracker One and Ether Tracker One would be suspended, due to confusions over whether the products are exchange-traded funds (ETFs).
Both products are listed on a Nasdaq Inc (NDAQ.O) exchange in Stockholm. Their functionality includes crypto price tracking and low fees. The statement of SEC reads: “It appears … that there is a lack of current, consistent and accurate information. Application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as “Exchange Traded Funds”.
The SEC is known for its strict attitude towards letting ETFs tracking cryptocurrencies come to market. However, investment companies try to promote other types of investment in an attempt to make crypto trading as easy as with regular stock. These products are sometime called ETFs, which leads to further confusion. That’s why industry experts are calling for regulators to standardize such terms.