Like, what if people sell etf shares but the fund or fund owner keeps the btc in preparation for loaning it as a bank, instead of selling it on chain. That would be bad.
Discussion
faking ownership of bitcoin is always a problem
many exchanges have done this and the real stock of bitcoin in the market and on offer is actually unknown because they are all lying ass dogs
this is why, when the actual demand gets hard, the price moves fast, because much of what was stopping the price moving up, previously, was paper, hot air.
I'm not sure that's actually a problem, if it causes banks to blow up. Banks are predators... I hope the lie about their reserves then panic and burn, and let the btc run free in the process
something that might help to calm your mind about this
if they lose the coins, good, our coins become worth more
if they sold the coins beforehand, and fail because they did that, whatever, that's why the price didn't move