There is an old post on Reddit written by admin @theymos 4-5 years ago on the subject of BTC ETF, I have quoted it several times on the forum, and somehow it seems to me that it could be the closest to the truth.
Agreed, an ETF will almost certainly turn into a disaster at some point. The coins will be stolen, forks will be handled controversially, there will be issues with fungibility (eg. someone will "trace stolen coins" to the ETF's stash), the world will freak out when a bunch of retirees lose their life savings after doing the equivalent of buying BTC at $20k, etc. etc. It'll also get the sort of people who love regulation more into BTC, which is never good.
It's possible to never get hacked if the security is well-implemented. As I understand, ETF doesn't need hot wallets, because it's not supporting withdrawal of coins. Fungibility is not a problem for existing Bitcoin entities like crypto exchanges. They don't get shut down or fined because of stolen or dirty coins. ETF will have KYC, so they will cooperate with law enforcement if the trail of suspicious transactions will lead to them.
Obviously, Bitcoin ETF would need to be regulated to be allowed to operate, but I don't think it equals to Bitcoin becoming more regulated.