Anybody with any significant amount of wealth is a target. The world we live in is not safe. That's just reality.
Perhaps the ETF is the way to go for those with significant amount of wealth, since I think this is insured with fiat currency, but in general, regular people who just save up in bitcoin should absolutely not risk all their life savings in a centralized exchange.
It'll be up to "crypto lobbyists" to do their thing for the good of the industry. Regulations are constantly changing, so fingers crossed investors will have better protections in the long run.
Investors who merely want the fiat gains can just buy the ETF and be safe from hacks, as when investing in any other asset on paper, but if people want to buy actual bitcoin, regulations won't ever protect the consumer, because that's just the nature of Bitcoin; it is easy to compromise and transactions cannot be reversed.