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A visual representation of the digital Cryptocurrency, Bitcoin, is seen on September 04 2018 in Hong Kong, Hong Kong.
The U.S. securities watchdog has halted trading in two cryptocurrency-related products because of confusion over the nature of the financial products.
The regulator said that broker-dealer application materials and trading websites characterized the products as exchange-traded funds (ETFs) – listed funds that track a basket of assets.
Instead, the securities are “non-equity linked certificates,” the SEC said, citing the products’ issuer. The SEC ordered trading to be halted until September 20.
“It appears … that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One (Ticker Symbol: CXBTF) and Ether Tracker One (Ticker Symbol: CETHF), issued by XBT Provider AB (publ), a Swedish company headquartered in Stockholm, resulting in confusion amongst market participants regarding these financial instruments.”
It added: “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.”