Although, IMO, institutions will find a way to get into Bitcoin without an ETF. We've seen however, that in the last months despite the huge purchases, the price didn't move as much as it should. The only logical explanation is of course the fraudulent shorting using Mex and other not well regulated exchanges.
There's another consideration. If Wall Street whale traders
do want a part of the trading action, then they want to control it. That means controlling a few on-off ramps (exchanges) where they can control the spread, and most importantly, control
shorting and short coverage.
I.E., they don't want all the available coins floating to an exchange that they don't have a close relationship with. Especially if that exchange were to allow naked-shorting and 100X leverage. At least in theory, they want all the available trading coins to migrate to exchanges that they can control.
There is also a non logical explanation. As we are normal people here, carefuly thinking about every detail, we tend to forget that there are people who are not like us. Take for example Las Vegas - how many addicted people are in the casinos losing all the cash they bring in their pockets! The same is with the addicted daily traders, who can't be called manipulators, but like vicious brainless piranhas eat the price down until their stash is gone in an endless stop loss chase. The removal of Mex shorters will tip the balance against the piranhas and in favour of the natural growth. So I applaud the CFTC action and hopefully it will shut down Mex and put their owners and other money launderers in jail, where they belong!
You're not wrong here.