They aren't going to implode but the jig is up. They aren't going to be able to sell $1 of Bitcoin for $2 ever again. mNav probably trades between 0.9 and 1.2 for a number of years until they figure out how to be some sort of Bitcoin bank and have an actual business model besides selling shares.

I have said this before but I think even if they simply ran a large lightning node and earned some revenue off some Bitcoin the market would look at it positively. It would be a de minimis amount of revenue but the market would likely reward them for it. They should also build a best in class custody solution for Bitcoin only and charge funds and other large entities a fee to hold their bitcoin. That would have the added benefit of large entities diversifying away from Coinbase as a custodian.