More adoption YES, decentralization NO doesn't sound like a win for Bitcoin. The assets managed is still as unsafe as assets in CEXs. If their wallets gets compromised, their clients loses their Bitcoin as well.
Bitcoin was designed to be decentralized, all institutions involvement gets Bitcoin more centralized than decentralized and it's a loss for Bitcoin irrespective of the fact that the price is going up.
Not your keys, not your coins. The best way to hold Bitcoin is self custody and not third party management.
You are completely missing the point. The topic was never about centralization and decentralized platforms, it was never about custody of Bitcoin, it was about adoption of Bitcoin by the institutional investors.
Centralization of one platform doesn't stop adoption, for years now "not your keys not your Bitcoin" phrase awareness has been around but many people don't care, they preferred custodial than holding it own their own and that's sad thing we can't reverse but we will keep teaching self custodial, the importance of decentralization and self independent on any exchange because we can't depend on adoption and completely ignored decentralization, Bitcoin will be at the wrong hands and it's going to be a loss war.
What OP was saying the more institutional investors buy etf, more adoption Bitcoin will become which is not really the conventional adoption of Bitcoin. They are buying Bitcoin spot ETF under the management of Blackrock and Fidelity. These two institutions have billions of assets sitting around one corner to boost demand of Bitcoin. The more people buy Bitcoin spot ETF, the more Bitcoin Blackrock and Fidelity will be buying and holding and the more ETFs they sell, more Bitcoin will be sold off in the market. This technical adoption is a price impact of demand and supply and not real adoption like having real Bitcoin or personal wallet and do what you want, when you want and how you want.
Are Institutional different from other centralized exchanges? Yes and No. Yes in the sense they hold Bitcoin in a custodial wallet like centralized exchanges, they share some similar interests. The No is where the other assets management comes in, they have the medium to make people buy more ETF, the more Blackrock and Fidelity buy the more they buy real Bitcoin and hold into their custodial wallet.