Tbh I don't think its that bad. Perhaps not great, but it is what it is.

I have money locked in an IRA, was I going to let it sit there in meaningless mutual funds, or buy an ETF? I can't take it out without big tax implications anyways. Perhaps the ETF makes sense for that!?

So... Why not both? Self custody where you can, buy the ETF where you have to....

Is it bad for bitcoin? Bitcoin is a protocol, it doesn't care who owns it. Owning more doesn't give the owner more power except to move price in infinibucks. I run two nodes, and my vote still counts, no matter how much saylor acquires. He wants to be a bitcoin bank for normies. Let him. I'll stack and stack and stack too.