(3) Bitcoin's only intrinsic value is its utility as a method of payment. Its value as an investment depends entirely on that utility. Bitcoin is a high-risk invstment because no one can tell what the demand for that use will be, and there is a positive probability that such demand (and therefore its value) will go to zero at some point. Approval of the ETF will not affect the expected demand for that use, nor that probability of failure. Therfore COIN shares will be just as risky an investment as bitcoin itself. If large institutional investors do not trust bitcoin now, why would they trust COIN?
No, this is not true. A significant portion of bitcoin value comes from its utility as a storage of value: an asset that is scarce, non-confiscatable, exceptionally carriable (cf. gold), pseudonymous, uncorrelated to any traditional asset, and more.
Even for its utility as a method of payment, the approval of COIN will make bitcoin looks much more legitimate, and it will certainly attract more merchants to accept and even hold bitcoin.