This is a really good point - I didn't consider that it would allow wall street to hedge their BTC bets which they couldn't do before - thank you!
The articles always say that wall street doesn't want to worry about holding the underlying asset but that may not really be true.
Exactly. Anyone that wants to play arbitrage between the markets will be able to do so as well, and in most cases they will have to own the underlying asset, even if just for a short amount of time.