I think thats market participants duty to price that risk, how much will self custody be worth as a premium? Don't know, until we see a good old fashioned rugging.

My one concern is the backing of these things, its settled in-cash so who is to say they're not inflating the supply just a little and as it continues to run up these issuers continue to get greedy and over their ski's

The other concern is that none of this "bitcoin" is interoperable with the open monetary network, so you can't even call them out on this bs, like you can with an exchange and drain their reserves