This "in cash" thing about the ETF is ticking me off. They're just looking for a way into paper btc, which as of now isn't a (real) thing. They will have their way, I'm sure.
I hope they get burned by the mightiest short squeeze on the "underlying" the Earth has ever seen. That will teach them and enrich others (notably, some of the people reading these words).
I suppose they had to give in to the pressure of the SEC, which preferred the in-cash method, while ETF applicants were in favor of the in-BTC method of doing business.
This isn't written in stone, however, and therefore subject to change at some future point in time. The expectations of paper-investors seem to be high, so why would ETF applicants risk another "no-no" by the SEC? I think they want to get things started, and take the compromise. Once BTC is established and trusted enough in these realms (it's still considered to be an alternative asset, imo), things may change fast again, as it currently does with the ETFs.
No?
If short squeezed to death, the investing world will likely fall back to push the good old "it's a risky scam" narrative.