As long as the fee to move Bitcoin is worth the cost and blocks aren't getting censored I'm not too worried about institutional investors. This logic that hedge funds getting involved kills decentralization means that all crypto was doomed from the start. We can't exclude institutions from a permissionless system. They are going to wet their beak on any and all action that gets big enough. That's a guarantee.

Bitcoin and crypto are infrastructure.
It doesn't suddenly become worthless because rich people start using the infrastructure.

If hedge funds started buying Hive it would also pool just like Bitcoin.
It's the stake holders that determine where inflation is allocated.
That is not a solution to this problem, assuming it is a problem to begin with.

It doesn't matter what people want.
It makes no difference whether someone wants an ETF or not.
If every single person in Bitcoin opposed the ETF it would make zero difference.

I agree that the old guard creating derivatives is nothing to celebrate,
but this is all part of the journey.
You're declaring it over when it's really just started.