They’re going to be buying and selling every trading day. I don’t know off hand how often they are legally required in their filings to rebalance though. And at least the Blackrock filing allows them to totally suspend their pricing mechanism…

So obviously there’s de-peg risk but that’s not different than any custodian (though better, faster tech for redemption mitigates this risk)

You’re still going to see people dump a poorly tracking ETF for a better tracking one, albeit less rapidly perhaps than bitcoin moves from an insolvent exchange to another (or to self custody).

It’s not a *good* shared custody solution but it’s still a fixed supply underlying asset and market game theory does still apply