The latest ETF amendmend says that upon hard fork the Coin ETF would decide for one chain within 48 hours.

This way, investors would lose all underlying value of the other side of the fork. In worst case 50{88c91daedd271a990a10650c05d769cae2765e0603edf30ca95f18704e5748e8}, or even more if market value evolves unfavorably after the 48 hours, gets embezzled this way. (imagine the "winning hardfork" shows a bug and has to roll back after >48 hours – then coin etf's value would be zero quickly).

Is such a clause, how bad and scandalous it obviously is, even legally approvable in the first place?!?

After all, it is pretty analogous to an ETF holding shares as underlying, saying: "Upon a stock split, the ETF mirrors only one share of the new shares after the split, and ignores the rest."