Cryptocurrency's Balance between Decentralization and Centralization

Hello all, recently I have been considering how cryptocurrency and ETFs balance decentralization with centralization in terms of my thoughts as a layman and wanted to know yours...

Cryptocurrency Decentralization: Most cryptocurrencies are built around decentralization. E.g. Bitcoin and its peers operate using blockchain tech, dispersed across nodes worldwide without a central authority dominating decisions.

Centralized Aspects of Crypto: But cryptocurrency doesn't always remain decentralized. Consider Coinbase or Binance, both giants in the industry for trading but which also maintain control of user funds during exchange processes.

Exchange-Traded Funds:

ETFs offer another investing tool with which cryptocurrency could potentially enter mainstream investment avenues when crypto ETFs inevitably become a thing.

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As I've seen, centralization debates often circle around:

Exchanges: How centralized exchanges exert control over trading.Mining Pools: Concentrations of mining power among a few large players in cryptocurrencies like Bitcoin.Regulatory Impact: Examining how regulatory actions can alter the decentralized nature of cryptos.

ETFs could help usher certain aspects of crypto into more regulated and centralized spaces as they operate within established financial frameworks. Which probably is the most realistic way for crypto to slip into everyday use.

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It seems like ETFs could add another element, potentially bringing some crypto assets into more traditional financial settings. But is this moving away from the decentralization philosophy that birthed crypto in the first place?

What are your thoughts on the balance between decentralization and centralization in the cryptocurrency space?

Edit: It seems I am misunderstanding the entire concept as a layman, is it just difficult for me to pick it up or will the general public have this misunderstanding as well?