Direct Custody and then Managed custody. Managing and holding your Bitcoin yourself to some persons is a no brainer. However, ever thought of the prospect of financial institutions holding and managing it, much like a flat currency. Can't help but wonder about the securities and convenience that comes with such. Would such a move increase the usage and adoption of Bitcoin? Knowing it can be held by banks? Well.. you can say so. Never forget such a move will kill one of Bitcoins character; Decentralization.
Well being too strict with the decentralizations of bitcoin would sure cause a lot of drawback for adoption which will also affect price and the values at which Bitcoin hold or sustain in a period regardless its volatilities.
We all also can not keep a 100% anonymity but that does not mean privacies should be underated. The services of the ETF has brought a lot of market influence in both adoption and price influence.
Let us not see it terrifying that investing with the ETF is a lot of loopholes, aside them being in control of your funds, the rest of it is cool considering risk managements such as securities and the psychological investment sentiments where investors have to take wrong decisions. Infact, ETF encourages trust that Bitcoin has much better in preservation for the future. So, if you think the institutions are crippling the decentralizations of bitcoin just because they holds your funds for you, then also think about their essence in the market.