its mainly pension investors
by putting your PRE-TAX income into a ETF you save 20-40% on a purchase because its PRE-TAX income buying the shares

and in many years when its time to sell(claim your pension) you dont suffer capital gains so another X% saving, because its in a pension scheme

ETF shares are NOT a claim of ownership of indirect BTC
ETF shares are a share of a trust thats valuation is pegged to a bitcoin PRICE of total coin owned by the ETF
you cannot as a end-user investor ask to convert share to BTC

its purely a share deal shadow tracing the bitcoin PRICE

Bitcoin ETF is not bitcoin but an asset that has the spot price of bitcoin. The best to hold for me is bitcoin and not bitcoin ETF because I will prefer to hold what I have complete control over.

All I know is that everything is taxed in USA. You mean that those that hold bitcoin ETF shares will not later be taxed if they want to sell it?

Many people are used to centralized platforms like banks and the stock exchange. They feel more secure to invest in sectors that the government has some level of control over. They trust that these platforms will manage their money more than themselves. Another issue is that many people don't also want to take responsibility for learning about the Bitcoin space because they think that it is complicated. So they prefer to use third-party platforms to help them keep their funds safe.

There is also the claim that using ETF as security or collateral in accessing loans will be more flexible. Others also think that it is easy and less complicated to transfer such ETF holdings to successors.

Most of these claims are products of ignorance. If these ETF investors knew more, they wouldn't put their funds in centralized platforms that cannot be trusted.

There are countless possibilities as to why an individual would prefer an ETF over Bitcoin itself, the most reasonable being security reasons. On centralized and legal platforms, it's always protected by law. So, if something unexpected happens to the platform, then individuals as clients of the platform will receive fund protection. Another possibility could come from individuals complex ignorance about Bitcoin, so they prefer a safe zone.

Well bitcoin etf will mostly be utilized by big corporations they used to have too many rules and regulations regarding a company holding bitcoin but with etf they can now purchase bitcoin easily

Huge corporations investing in bitcoin will surely attract attention towards the coin making it more well-known among the public

I am sure some individuals would also purchase bitcoin etf instead of the actual bitcoin because of security concerns

There are very little benefits that outweigh just holding BTC in a non-custodial wallet. There might be arguments that there is more liquidity from the institutions, or convenience, or maybe even insurance. Though I wouldn't call any of those theories any reason to hold or buy ETF Bitcoin over that of holding it in a wallet.

You might be able to trade it with the most perceived trust as you can do it on a stock exchange, and the product is created by some of the worlds largest institutions...though this might only be a benefit to those who are trading or who are not looking to buy and hold. Even such, it is arguable to choose the ETF over a real spot market, like on Coinbase, or Binance...if you are looking to trade. Or moreover, using a decentralized exchange where you can trade with more control over custody.

It can serve as a bridge for more awareness, accessibility and credibility for Bitcoin as a whole. Though I wouldn't call it a better instrument to hold or trade Bitcoin.

The ETF is for the tech illiterate people. Even the people who think they are informed about bitcoin lose their coins every day. We hear about them all the time. Imagine how would those rich boomers feel against bitcoin. They are totally clueless. Some of those people still want a piece from the action but they are afraid of holding btc in their wallets. These people want safety and protection. That’s why they are buying the ETF instead of the real deal. I totally understand their point of view because like I said even some the most proficient bitcoiners lost their wealth because they got hacked or they were careless.

its NOT a special thing due to being "bitcoin ETF"
the tax thing is about.. and ill say it again PENSION PLANS where your employer puts part of your income into a pension plan before tax.
and because its a pension plan you dont pay ongoing capital gains tax in a pension plan.

you might want to learn how pension plans work as thats the only reason many people would invest in an etf rather than buying real bitcoin separately with their normal income

Most people who buy ETFs are traditional market people who have no idea how bitcoin works, or they are people who want to diversify their investments.

These people's knowledge about the fundamental part of bitcoin is zero and they think that bitcoin is a simple virtual asset, so they choose not to get involved too much, this way it is easier to acquire through ETFs.