The U.S Securities and Exchanges Commission (SEC) has suspended the operations of two investment projects. It has halted the trading in the projects that mainly focus on tracking digital currencies. The commission explained that the two have been causing confusion on whether they are exchange-traded funds (EFTs).
Securities and Exchanges Commission suspends Bitcoin Tracker One and Ether Tracker
The Securities and Exchanges Commission has revealed that Ether Tracker and Bitcoin Tracker one operations have been halted. Both have been stopped from trading in the U.S market until September 20, 2018. The two projects are listed on the Nasdaq marketplace based in Stockholm. They are focused on tracking digital currencies price net of fees. These projects offer an easy access to Bitcoin (BTC) as well as Ether (ETH) via one’s broker or even bank.
Through its website post, the commission stated, “It appears … that there is a lack of current, consistent and accurate information. Application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as ‘Exchange Traded Funds.’” SEC noted that the order is effective immediately.
SEC firmly against ETFs
The SEC has been firm against allowing ETFs dealing with Bitcoin or any other crypto trade in the market. However, some firms have been trying to create projects that simplify cryptos trading similar to a common stock. In spite of the move, more often than not such projects have been classified as ETFs.
Consequently, players in the crypto sector are urging the authorities to standardize terms that define ETFs. BlackRock which is one of the biggest ETF service’s provider is one of those calling for standardization.
Meanwhile, the value of digital currencies continued to plummet. According to CoinMarketCap.com, the market cap of cryptocurrencies dropped to $197 billion as of Friday, last week. Compared to crypto’s peak witnessed in January, the drop represents a $640 billion fall.
Ether seems to be falling at a faster rate than Bitcoin in the last couple of months. This is attributed to the fact that several blockchain firms are liquidating their ETH assets.