My understanding was the ETFs have to own the underlying coins in full, limiting the potential to pull an FTX. Is that not true?

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Required is such a strong word that requires so much trust.

Devil is in the details id imagine. Fidelity is building out its own self custody infrastructure but i believe th rest are using coinbase as a custodian. So coinbase will be moving a bit of paper between the accts i guess 🤷‍♂️

Fidelity did have their own trading platform for a bit before the etf too.