So Bitcoin ETF is 'synthetic asset' that tracks Bitcoin price. However, when you buy ETF you don't buy BTC. Now the question is why pension funds can't buy real BTC, but they can buy its imitation? :-)
And why SEC refuses to approve ETF? Is there any ideas why they don't want to approve it?
Well, I would like to share my knowledge regarding this topic!
Explaining in a general way, an ETF is nothing more than an index fund, and the investor will be exposed to the fluctuations of these assets within an ETF.
I will cite an example to clarify better.
In a box of chocolates, we have different flavors (grape, milk, strawberry, banana and others), in a crypto ETF, it can be composed of 70% BTC, 10% ETH, 10% LTC, 5% ADA and 5% SOL, if these cryptoassets appreciate you will make a profit, but if they depreciate, you lose.
Sometimes institutions cannot buy crypto assets directly, but can invest in crypto ETFs. (depends on your regulation)
There are several investors who know Bitcoin but do not have enough knowledge to invest in crypto but purchasing an ETF he will be exposed to cryptocurrencies, even if indirectly.
Most investors are creating expectations regarding the Bitcoin ETF, there will possibly be a great demand for this investment and consequently the value will inscrease.