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If Coinbase lies about their ETF's BTC holdings, is it a risk for BTC?

Bitcoin Reddit

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Looking for risk vectors in massifying BTC adoption.

Title says it all. If paper/fake BTC from ETFs starts flooding the system, customers think they have BTCs backed, and most of the paper value is held, not moved, can it impact BTC's price and validity? If yes or no, plz explain. Thanks!

submitted by /u/Correct_Passage_5138
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