Subject: SR-CboeBZX-2023-028: Webform Comments from Michael Es
From: Michael Es
Affiliation:

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.