Fact is bitcoin adoption by state comes with regulations, which means a lose of privacy and freedom for bitcoin holder's due to centralized presence, well there is no way state will adopt bitcoin without regulations.

ETF is a market and only the investors benefit from bitcoin and not the bitcoin ecosystem itself as far as their have no development that aids bitcoin scalability from their part  but rather feul centralization.

Best thing for bitcoin in all of the shit is, it profe of work (POW) this makebthe network decentralized unlike if bitcoin were to be prove of stake network where whales with the highest liquidity provision could control the next block to be mined in the blockchain which give it up for centralization and government possible control of the network.