Without the option to simply remove your Bitcoin from their custody how do you know they even own it?

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That’s a very good point. But if they claim to be holding your bitcoin, and you try to convert it, send it or spend it, and they cannot back the request because they were “lying”, it will be a very short-lived lie. They cannot print more bitcoin.

All I ask from any of them is to allow withdrawals. Otherwise it appears to be a ploy at dilution to suppress / manipulate price

What good is a bank/custodian that only ever takes deposits but doesn’t allow withdrawals? What would be the point? Sounds like Ethereum.

Well, ask Fidelity + BNY Melon who offer Bitcoin exposure but no withdrawal 😂