US SEC Temporarily Suspends Two Investment Products from CoinShares Subsidiary

US SEC Temporarily Suspends Two Investment Products from CoinShares Subsidiary

XBT Provider AB, a Swedish investment firm and subsidiary of CoinShares, was issued an interim suspension for two products by the US Securities and Exchange Commission.

The suspension will take effect on September 9, 2018, 17:30 EDT until September 20, 2018, 23:59 EDT.

The two investment offerings temporarily suspended by the SEC are Bitcoin Tracker One (CXBTF) and Ether Tracker One (CETHF). Both products are classified as ETNs or Exchange Traded Notes. The SEC points out these products show inadequate, inconsistent, and inaccurate information which results to participant confusion.

Since 2015, Bitcoin One Tracker has been available for trade on Nasdaq Stockholm. Just recently, and before the temporary suspension, it made its way to the US OTC (over the counter) investment market.

In finance, Exchange Traded Notes represents unsecured debt. It is an agreement where payment will ensue at maturity, similar to a bond. Unlike most bonds, no payments or disbursement will be issued until its maturity date.

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