It is abominable that legal institutions could and do do that. Creating a representation of BTC and selling wall street's leveraged version of a bitcoin, completely defeats the purpose of owning BTC since you have to trust the issuer to pay you back. They can't possibly think that is a good idea, would be the biggest bubble of all time probably insured by the Fed/USD. Definitely something Goldman Sachs would do, leaving the default to the fed, impossible to bail them out that time around. Market flood would create a price spike of a million or more likely destroy the USD along with it.