The issuers have to disclose the ETF holdings and are regularly audited to ensure accuracy. If they lie, they face investor lawsuits, SEC penalties, and can even be shut down if it’s severe enough. Not to mention the big firm issuers would suffer pretty massive harm to reputation.

I know we shit on the SEC a lot but the ETF issuers have to follow much stricter regulations than crypto exchanges and the SEC actually has purview over them, whereas crypto exchanges fall into a gray area of the law.