Yes, when you buy a Bitcoin ETF, you do not own native Bitcoin and relieve yourself of the responsibility of storing Bitcoin and the possible loss of your seed phrase. Instead, you buy an ETF fund that stores Bitcoin reserves in the amount of your purchase. Funds that issue Bitcoin ETFs are subject to regulation and auditing. Of course, there is a possibility of bankruptcy, but it is not so great because the funds are under constant control of the SEC.

Personally, I would prefer to own native Bitcoin and be responsible for the security of my own Bitcoin myself, rather than buying a Bitcoin ETF.