With all the ETF talk, I wonder when the first one rugs, not as in runs away with the money but thinks they can manage their own custody or uses a custody provider that fucks up those keys and automatically ETF is unbacked in seconds.

To me an ETF is no more or less vulnerable than having an exchange account and everyone knows how we feel abut that setup

An ETF and its custody model can be changed, it could be turned into a federated eCash mint or done as a federated side-chain if you need more bells and whistles like KYC and whitelisting and all that nonsense, but I wouldn't hold my breathe