1 - How does this add value over Coinbase?
Scooping up Bitcoin in a Roth-IRA for tax free gains =
.2 - What's to stop someone from setting up a counter-fund, denominated in BTC, that's pegged to the dollar as a shorting mechanism? Or, what's to stop someone from setting up equivalent funds?
Regulatory hurdles and the capital to back it. Same as with setting up any financial mechanism.