In-kind redemptions doesn't mean Blackrock sends you Bitcoin to your cold wallet... It won't say anything about reserves.
Discussion
In-kind would mean you could send your corn to Blackrock and redeem for shares (god it sounds so stupid when I type it out, who tf is sending corn to those arseholes?!) - you could then track where it goes and get an idea of their wallets/holdings and compare against shares issued to see if they’re rehypothecating.
I think the government wants the majority of Bitcoin to be custodied by a few large companies in order to make it easy for them to confiscate it like FDR did with gold.