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The original was posted on /r/bitcoin by /u/_Vatican_Cameos on 2023-08-09 14:57:59+00:00.

Apologies if this question is redundant, ridiculous, or an unnecessary worry.

How likely do you think there’s a future where banking institutions (Chase, BoA, etc) offer paper bitcoin to their customers, and most people not understanding the importance of self custody, end up with a fractionalized share of essentially nothing much like the banking industry is currently doing with the dollar? Does the likelihood of a spot ETF negate this concern with national/regional banks, not that a spot ETF is significantly better because it’s not, but it should* be regulated to the degree where all shares are covered 1:1 by BTC reserves. Is the concern invalid?