ETFs, like stocks, follow strict rules. They need personal details (KYC) from everyone, so using them removes the privacy that comes with cryptocurrencies.
Sure, but they have a lot of other benefits. Obviously those who prefer to hold shares in an ETF are not bothered about hiding their holdings from regulators/government entities. Quite the opposite, it's probably much easier to keep track of your buy/sell orders for tax purposes than doing so with private transactions.
Again, ETFs are just tools we can use but don't have to. As long as the option to transact directly and anonymously on-chain is not restricted, I see no problem here.
definitely, privacy is compromised into this type of investment. however, it depends on the investor if he will comply with such requirements. this ETF on the other hand, provides a good avenue for public to learn more about this digital market. as previously viewed as being used only by illegal actors, now with the introduction of crypto-related ETFs, the notion to this market in my opinion is changing.