Unless something has changed, ETFs are required to be legally separate from the company, and assets are held by a third party custodian. In theory, the ETF should be mostly unaffected.
From ProShare’s documentation.
If an ETF sponsor goes bankrupt, the fund will either continue to be managed by a different adviser or will be liquidated, in which case the investor will receive cash representing the value of his share of the underlying asset.
So, you can see how in theory the bankruptcy of the sponsor should not have a direct impact on the value of ETF.
Also, Assets are in a separate account, not separate from company
ETFs are legally separate from the management company. You can review this with the SEC, or you can read the documentation from any brokerage. For further reading, research segregated liability.
An important characteristic of ETFs and mutual funds is that they’re legally separate from the company that manages them. They’re structured as separate “investment companies,” “limited partnerships” or “trusts.” This matters because even if the parent company behind the ETF goes out of the business, the assets of the ETF itself are completely separate and investors will still own the assets held by the fund.
HSBC ETFs are sub-funds of HSBC ETFs plc, an investment company with variable capital and segregated liability between sub-funds, incorporated in Ireland as a public limited company, and authorised by the Central Bank of Ireland. The company is constituted as an umbrella fund, with segregated liability between sub-funds