You were probably thinking about ETF when the person thinks they are truly buying a product while in fact, it's just a promise of future ownership. Well, exactly what we have now with Gold's ETF
Well, Gold ETF actually does that. It is called
paper gold (you can search about it, tons of articles in the internet),
a gold which exists only in paper. Certainly they will do that with bitcoin as well, as they do it with a physical asset.
Like this one on forbes:
The share price tracks the price of gold, and it trades like a stock, but the vast majority of investors don’t have a claim on the underlying gold.
The reason for this is that you can only request physical delivery of metal if you own a minimum of 100,000 GLD shares (most investors don’t: at $1,000 gold, 100,000 shares is more than a million dollars).
Even if you do own enough shares, the GLD ETF reserves the right to settle your delivery request in cash.So why is GLD appealing to investors if
you never actually own any gold?...
Think about it: If you own GLD, you must rely on a counterparty to make good on your investment. If the fund’s management, structure, chain of custody, operational integrity, regulatory oversight, or delivery protocols break down, your investment is at risk.
It all raises too many questions. Can you be sure the bank doesn’t front-run its customers? How safe are the fund’s holdings? Is the fund protected by adequate insurance? Is the custodian bank trustworthy enough to safeguard the gold?
The best reason to own gold is as a hedge against risk. It can be your last line of defense in an economic crisis—a form of wealth insurance, if you will. But since gold ETFs are part of the very banking system you need protection from, you must ask yourself if they serve one of the primary purposes for owning gold.
https://www.forbes.com/sites/oliviergarret/2017/03/22/gld-vs-physical-gold-which-is-the-better-investment-now/?sh=563948fb2a0bthis is similar as well:
https://www.forbes.com/sites/oliviergarret/2017/03/09/3-reasons-why-investors-should-avoid-gold-etfs/?sh=768f364c4dd8Another one:
Why gold-backed ETFs 'have created an illusion'
“Many gold transactions, such as futures contracts, certificates, and ETFs, are nothing more than paper proxies or derivatives of gold. They do not represent legal ownership of gold. These proxies may work as planned during normal market conditions but may fail under stress, when investors need the safe haven of bullion the most. I have always said that if you aren’t paying reasonable insured storage fees for allocated bullion, then in all likelihood you don’t own any gold at all.”
According to the World Gold Council, global gold-backed ETFs added 298 tonnes, or US$23 billion, across all regions in the first quarter of 2020, while total ETF holdings amounted to 3,296 tonnes, representing US$179 billion. The largest ETF is SPDR Gold Shares (GLD) with 1,048 tonnes.
...
He added: “Unlike physical gold, ETFs have counterparty risk,
because there’s a possibility that the other parties, such as the Authorized Participant (AP), the trustee or
others, may default or fail to uphold their part of the agreement.”
https://www.wealthprofessional.ca/investments/alternative-investments/why-gold-backed-etfs-have-created-an-illusion/329482 Well, there is tons of material in the internet.
I own some Gold ETF. But they are not 100% safe.
Having a Bitcoin ETF is not the same as owing bitcoin, just like owing a gold ETF is not the same as owing gold
