An ETF is supposed to be a basket of assets which you pay a fee for someone to intelligently manage the allocations over time.
Single asset crypto ETFs make no sense in an environment of crypto deregulation as anyone can buy and hold crypto. So you're left with these ETFs being a way to get people to pay a premium price for assets they could easily buy now and charge them fees.

https://www.dlnews.com/articles/regulation/sec-rule-change-could-unleash-deluge-of-crypto-etfs/