Temporary prohibition of trading of the exchange notes in the United States will not have a negative impact on the cryptocurrency market and is not a sign of bias of regulators towards new assets. Comments about this CCN said the lawyer for securities Kobre Kim LLP Jake Czerwinski.
According to him, the problem is not crypto per se, but in the absence of comprehensive information exchange on new products from the broker-dealer XBT Provider AB.
“The Commission [securities and exchange Commission (SEC)] has temporarily suspended trading in the securities of CXBTF and CETHF in connection with the confusion among market participants about these tools,” — noted in the official document of the regulator.
Thus, the application XBT Provider they have been described as “exchange traded funds” (ETFs), from the Issuer, they are called “certificates that are not associated with shares” and public sources – the “exchange notes” (ETN). Thus, the company misled users.
Buy ETN and ETF investors profit at the expense of the price movement of the target asset. However, ETN unlike ETFs do not provide ownership rights in the underlying asset. In addition, they are unsecured and subject to credit risk.
“Thus, if an investor buys bitcoin ETN, being assured that it was acquiring ETFs, this can be a problem. SEC wants investors and ETN providers understand the difference between ETF and ETN”, — summed up Jake Czerwinski.
We will remind, on the eve of the SEC has ordered the suspension until September 20 trade tied to the dollar notes the exchange of cryptocurrency Bitcoin Tracker One (“CXBTF”) and Ether One Tracker (“CETHF”) of the company XBT Provider AB.