If ETF sponsors could print infinite synthetic Bitcoin to capture fees, they'd do it non-stop. They can't.
Their license depends on proving reserves.
The real impact is on price action and liquidity, not the fixed supply. What youre seeing is the tradfi plumbing-market makers and hedge funds using derivatives to arbitrage between the ETF share price and the underlying BTC.
That activity creates weird short-term dislocations, like the stuff around Jane Street. But it doesn't create more coins; it just moves existing liquidity around faster. If anything, massive redemptions force issuers to sell BTC, adding sell pressure.
thats the practical risk now, not some phantom supply. So the narrative is irrelevant because the mechanics prevent it.
