Cryptocurrency investors awoke to reports on Monday that the unsteady market descended over the weekend, according to a report from Bloomberg’s Quint.
Ether, the second largest cryptocurrency on the market following Bitcoin fell hard during the weekend, and continued its downward trend on Monday, finishing the day around $196.78 according to Coin Desk. This slump marks the first time since November of 2017 that Ether failed to hold above $200, according to Cointelegraph.
Adding to the fall, the Securities and Exchange Commission suspended the trading of both “Bitcoin Tracker One and Ether Tracker One,” which are cryptocurrency-related securities that are traded on “Nasdaq’s Nordic markets,” according to a report from CNBC.
“It appears … that there is a lack of current, consistent and accurate information concerning Bitcoin Tracker One (Ticker Symbol: CXBTF) and Ether Tracker One (Ticker Symbol: CETHF), issued by XBT Provider AB (publ), a Swedish company headquartered in Stockholm, resulting in confusion amongst market participants regarding these financial instruments,” the SEC said via a statement.
Not all of the news surrounding the cryptocurrency market was bad, however. According to CCN.com, Canadian cryptocurrency investment firm First Block Capital’s bitcoin trust now has “mutual fund status,” allowing investors to add cryptocurrency to their “Tax-Free Savings Account or Registered Retirement Savings Plan” portfolios.
According to The Globe and Mail, only “high-net-worth investors” will be allowed to use First Block Capital’s new service, but those eligible will now be able to benefit from bitcoin’s ebbs and flows without having to mine or hold the actual currency.
In the United States, the Winklevoss twins received approval from regulators to roll out their new U.S. Dollar paired cryptocurrency named the Gemini Dollar. Their new currency is a “stablecoin” which should be shielded from the uncertainty of the crypto market. According to a report from CNBC, the Gemini Dollar’s stability makes it more practical for buying and selling tangible goods. Users of the Gemini Dollar will use Ether’s existing cryptocurrency network to make transfers.
“It is really a matter of bringing your US dollars on to the blockchain and making them borderless 24/7,” said Tyler Winklevoss during a phone interview with CNBC.
Winklevoss stressed that because the value of cryptocurrencies like Bitcoin and Ether fluctuate so dramatically, a buyer could be “dramatically under or overpaying,” depending on the market. Although the Gemini Dollar isn’t the first stablecoin, the Winklevoss twins say their coin will solve the issues of “transparency and oversight,” which have scared off potential investors in the past.
“I don’t think any of the offerings do adequate job [sic] in solving the trust problem. This [Gemini dollar] is the world’s first regulated stablecoin,” Winklevoss said during the interview.
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