I am playing with feelings today. It feels a lot better/safer to go into your investment platform and hit buy on IBIT than to go on Coinbase and hit buy on BTC. I wonder how many people feel uncomfortable keeping their stuff in Coinbase and are just deciding to sell over there and buy in their investment platform.
Their BTC is still at Coinbase. They are selling to themselves. Not much else has changed. But people now have a peace of mind that wasn't there before. The expense ratio is seen as "worth it".
Is this more centralizing? Sure. But can you blame them? No.
Let's just hope one day self-custody solutions can create the same safety feelings these custodial companies do. Right now they are no match for it.
PS: Yes, I know, self-custody is better and safer. But that doesn't mean that it FEELs that way.