In an official statement released on September 9, the SEC announced the temporary suspension of exchange-traded funds dubbed Bitcoin Tracker One and Ether Tracker One.
SEC Issues Order of Suspension of Trading in Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) https://t.co/5z1vEYFBFB
— SEC_News (@SEC_News) September 9, 2018
It gives the idea that this temporary ban has been actuated because there is still much confusion in the market over these trading instruments.
This pause will last till September 21. So after this date, one can trade in these cryptocurrency ETNs.
An ETN is a type of debt security. It is unsecured, which implies an equivalent estimation of guarantee does not uphold it, and it is unsubordinated which implies that it ranks higher in need over different kinds of security.
By purchasing an ETN, you are tied up with an agreement that the seller will pay you at regular interims based on the estimation of the good that the ETN is attached to. For this situation Bitcoin $BTC▼1.27% or Ethereum.
According to a website, “ETNs are structured products that are issued as senior debt notes, while ETFs represent a stake in an underlying commodity. ETNs are more like bonds in that they are unsecured. ETFs provide investments into a fund that holds the assets it tracks, like stocks, bonds or gold.”
Regardless of ETN’s being long-standing exchanging instruments, no doubt the SEC still needs more opportunity to clear up precisely how the exchanging of CXBTF and CETHF should work.
This news brings another obstacle for the market because of the SEC’s proceeding with a contribution in the digital money space. Despite the fact that the business sectors do have a past filled with making sense of these things.
To be sure, the SEC once proclaimed Ethereum as excessively decentralised, making it impossible to be classed as security. Regardless of that, the market figured out how to make advances in digital money exchanging using ETNs.