most of the ETFs are using coinbase as custody so there is a single point of failure there
government action could happen seizing funds
paper bitcoin games / rehypothecation
fraud
same risk as any other custodian + they will get quite large which increases risk
A failure such as this would do wonders for the price of bitcoin.
My hope is a regulated 1:1 spot etf for the most transparent commodity ever will make it obvious if paper IOUs surface.. but agree, why take the risk. In the meantime this new pipeline for fiat will be generational in magnitude
