SEC Orders Temporary Halt Of Swedish Crypto ETNsAnother day. Another confusion. Another show of incompetence by media. Another dump.So, SEC announced the temporary suspension of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) till 21 September 2018. Both of them are Exchange-Traded Notes (ETNs) that track Bitcoin (BTC) and Ether (ETH) respectively, and are issued by Swedish company "XBT Provider".
Now, focus on the word "Temporary", "Swedish" and "ETNs" above. It was a temporary suspension for an ETN by a Swedish company. But, those legendary media houses came to rescue. As, none of them cared to mention either of these terms in their article's title. What they did, you ask?
>Coindesk: SEC Suspends Exchange-Traded Bitcoin and Ether Investment Vehicles https://www.coindesk.com/us-regulators-suspend-bitcoin-and-ether-investment-vehicles/>Bitcoin.com - News: SEC Suspends Trading of XBT Provider’s Bitcoin Exchange-Traded Producthttps://news.bitcoin.com/sec-suspends-trading-xbt-providers-bitcoin-exchange-traded-product/)
>Reuters: SEC halts trading in two cryptocurrency products, citing market confusionhttps://www.reuters.com/article/us-usa-cryptocurrency-sec/sec-halts-trading-in-two-cryptocurrency-products-citing-market-confusion-idUSKCN1LP0TW)
>>Result: Blowing everything out of proportion, Redacting the most important info, creating unnecessary confusion and yes, a HUGE red candle too. Yeah, everything is fine. Perhaps, rather unsurprisngly, the crypto markets immediately reacted to these misleading titles. Even it never concerned the US, or any other country for that matter, we still got red.
Anyways, the reason for this suspension given was "The Commission temporarily suspended trading in the securities CXBTF and CETHF because of confusion amongst market participants regarding these instruments." The "confusion amongst market participants" that the SEC is talking about probably refers to the fact that some unsophisticated retail investors may mistakenly think that these two products are equivalent to ETFs, which they are not.
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