It is actually bad for bitcoin as it takes away the decentralized part away from bitcoin. And it is hard to trust them as they might sell for fiat for their further investments.
Exactly, you are right. Here we go again. People created something to free masses from slavery of banks and financial institutions and stupid people could now just reject this and gladly become a slaves again.
Sometimes I think that most people are not meant to be on their own and decide about their fates instead they want to live like slaves. "Yeah, I give you my bitcoin - invest it - I can't do it myself..."
I wonder with what this "Bitcoin bank" will bribe people so they will reject managing their own bitcoins.