Self custody hodling is incredibly important. It makes BTC unruggable, gold got rugged into fiat by centralising the supply. Rules have exceptions: Consider whales, they hodl large concentrations of the supply and are a risk to the system. Whales divesting gradually (as they do in every bull market) is a good thing.

I'm not even a whale, but the concentration I have is better off rotated back to fund BTC's infrastructure. I'll do just fine riding the picks and shovels. And the network will incrementally get stronger.

BTC is cutting a path to becoming a global monetary asset. Here on in absorbing capital quickly (e.g. ETFs, BTCTCs) must be balanced against driving the Gini Coefficient lower.