The entire thesis of bitcoin being decentralized effectively will be destroyed the day banks create a centralized exchange.
Not only will this cause a significant drop in the valuation long term it will be enormously profitable short term for those granted approval.
Transactions through the ETF will be cash only and therefore no in-kind redemptions will be allowed.
So if you sell your actual bitcoins for cash to invest in the ETF the bank is going to take that cash and buy the bitcoins you sold and then charge you a fee for doing it.
This also creates a new pool of inflows for people that were hesitant to invest in bitcoin until SEC approval which will allow long time holders to continue cashing out at the top.
So far it has been a well organized PR campaign to achieve peak valuation before the rug pull which will lead to another mind bending transfer of wealth in 2024.