Aug. 27, 2023
This comment is not just regarding ARK, but all spot bitcoin ETF applications. Please consider the generic term "ETF" a stand-in for ETPs in this comment: The SEC's reasoning for approving futures ETFs, but not spot ETFs has not been made sufficiently clear. As numerous other comments have already stated, it makes no sense to approve futures ETFs but not spot, considering the price of futures are correlated with spot. Right now, investors interested in trading the digital commodity of bitcoin are left to pursue less regulated means. More regulated vehicles would be safer. Regardless of what Commissioners may think of bitcoin, society cant stop people from investing in bad ideas.. And to be perfectly frank, I've been surprised in the past regarding investments that I thought weren't a good idea, turning out to be much better than I expected, with the benefit of hindsight. I'm guessing each of the Commissioners can say the same, if you've been watching markets long enough. The SEC's job is to protect investors, but the cat is out of the bag. It's not difficult to open a Coinbase et al account and invest in bitcoin. A spot ETF would provide one more layer of regulation and protection. That's a good thing for investors. I have read every other comment posted here prior to this. Most appear to be in favor, and most of those in opposition appear to be grounded in an opposition to the idea of bitcoin. Again, thinking an "investment" unsound is a personal decision. The best argument against is the one saying Binance needs to be investigated and held accountable. It appears plausible to me that Binance has manipulated the cost of bitcoin in the past, and if enough evidence of that is found, Binance should absolutely be held accountable for that. But that's obviously a separate issue which should be addressed separately. Investors need to take heed of the news of bad actors and manage their own investments and risks accordingly. Some will, some won't, people are going to invest anyway. Give people a more regulated, safer investment vehicle. Some will still make bad decisions regardless. Others will surprise you. Both are guaranteed, and unavoidable. What is avoidable is forcing all investors--including those who have done their due diligence--to use less regulated, less safe investment vehicles.