Arthur Hayes, the co-founder and former CEO of BitMEX, has highlighted potential arbitrage opportunities arising from the SEC’s concerns regarding crypto ETFs. Hayes explains that an ETF utilizing in-kind transactions would be a simpler option, as it wouldn’t directly impact Bitcoin trades. However, he points out that a cash-based ETF could lead to complexities and potential misuse of authority by the fund. Hayes suggests that politically connected brokers and exchanges may be favored in the procurement of Bitcoin for the fund. The SEC prefers a cash-based system to prevent fraud and restrict certain broker-dealers from directly trading spot Bitcoin. Several Bitcoin ETF applicants have been amending their applications to comply with the SEC’s demands for a cash-based approach.

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Information	Details
Geography	North America
Countries
Sentiment	neutral
Relevance Score	1
People	Arthur Hayes
Companies	ETFs, brokers, SEC, BitMEX, exchanges, market makers, issuers, American and non-American crypto exchanges, Robinhood, Fidelity
Currencies	Bitcoin
Securities	None