I don't think wrapped Bitcoin or that locked away is the problem.  The massive influx of coins is definitely a form of inflation though.  I talked about this a little bit about 8 years ago I think.  I was strongly against altcoins at that time due to their shadow inflation of Bitcoin.  That was up until the block wars made it clear that Bitcoin wasn't going to be able to handle all the necessary use cases for crypto.  So I'm not against altcoins anymore.  I understand they are a necessity as a result of Bitcoins blocks being limited into the future. 

Bitcoin being pushed as a store of value makes it really difficult to use for most use cases.  So altcoins, or ETFs, or whatever other nonsense you want to add in are going to have to use Bitcoin in their shenanigans, otherwise Bitcoin would be of 0 value in the future.