How so? You're expecting a profit off your BTC holdings and yet you are not doing any work yourself confirming transactions through mining - correct? Aren't you expecting a profit based on the work of others? If you say you holding BTC secures the network well the same logic can be applied to Ethereum. I am staking Ethereum and exposed to slashing if the validators are not configured correctly. And a solo staker is actually putting sweat and technical work into the project. Hardware has to be acquired and configured. Updates are necessary.
Michael Saylor's company owns almost 200,000 BTC. Does he personally mine BTC to help approve transactions on the network. If all he is doing is holding the asset then how can someone not make the argument he is profiting on the work of others?
The whole argument that ETH is a security is BS, and you know it. The ship has sailed. It's too late now for the SEC to do anything about it. Their job is not to hurt investors. Them trying to declare ETH a security would hurt investors. Look at what happened with XRP. They fucked the XRP holders, and even now it is still trying to recover after Ripple won the lawsuit.
It it looks like a duck, it is probably a duck. ETH is a security. It meets all the basic definitions of a security. The SEC did not fuck XRP holders. Rather Ripples did, but illegally issuing tokens. And "investors" did likewise, by not understanding what they were buying and the legal risks involved.
Now, does that mean that the SEC might approve? It's always possible (although that could lead to numerous lawsuits, contesting the SEC's incorrect application of the law). If they approve ETH, it really opens almost any unregistered security to be put into an ETF wrapper, which would of course be insane.
Time will tell. Also, even if they do approve, I am not sure how much demand there would be. It might well be a real disappointment. If I was GBTC, I would lie low on pushing ETH, continue to thrive on BTC, and not put more resources into fighting a battle which may cause me harm and legal costs, and which is an any case ethically corrupt.