No, ETF liquidity works the same as USDT. If you hold USDT you can easily sell it for USDC and redeem that to cash through Coinbase. USDT has liquidity against

No, ETF liquidity works the same as USDT. If you hold USDT you can easily sell it for USDC and redeem that to cash through Coinbase. USDT has liquidity against the dollar and large market makers arbitrage that with their ability to mint and redeem Tether - exactly the same way an ETF works. When you sell an ETF your counterparty is some market maker who is probably making a few bps between the price you sell it for and the NAV of those shares. USDT is clearly more liquid than an ETF, as well- while stock markets are open less than 20% of the time, crypto trades 24/7. 3pool has over $500M of USDT liquidity at a minuscule 1bps fee. So for all intents and purposes it’s worth a dollar and more easily redeemable than an ETF.