Some people actually do trust and have studied bitcoin and confirm that it's worth their investment, but anything that's not supported by the government, they consider to be very risky
People got too used to always being supported by the government so now they can’t stand on their own and be independent away from the government. The entire point of cryptocurrency is to conduct transactions and have a currency separate from third parties but some people are not yet ready for such concepts, I guess.
and don't want to get involved in it as they believe government policy can affect their investment, which is why some investors waited till the approval of ETF before they took the step of buying through ETF even as they don't hold custody of the coin; as long as they can count profit on their portfolio, they are okay with that.
This means that they are only in it for the profit and not because they like the very foundation and purpose of cryptocurrency. Some people genuinely do use crypto to protect their privacy. While making profit on the side. Either way, as long as they are not running on misinformation they can do whatever they want.