Hey nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z curious your thoughts on end game for ETF providers in the case of hyperbitcoinization (dollar worth nothing, customers stuck with ETF shares).

Lets use Fidelity as an example. I think the most likely scenario is Fidelity converts the FBTC shares into Lightning and distributes it to customers' Fidelity custodial wallet. Customers will have the choice to send the Lightning to any other custodial or non custodial wallet, but it'd be a useful "banking" service for most customers and they'd already trust their brokerage.

I imagine there will be some type of legal fight to allow Fidelity to convert the shares to bitcoin, but there should be enough public pressure if a large percentage of the population owns FBTC or equivalent ETFs (including politicians).

Fidelity and other brokerages would be incentivized to offer highly secure custodial Lightning. They want the customers to continue using their platforms for equity trading and lending.