Can someone smarter than me explain why these ETFs sought in-kind redemptions?
Surely that would have enabled people a window in to their holdings which would make it more difficult to sell paper BTC on top.
By doing cash-only, easier to hide their corn on chain and thus easier to rehypothecate?
I think you're spot on... From what I've read, it seems pretty fishy that the SEC would prefer cash redemptions over in kind unless there were underlying motives to be able to rehypothecate the actual bitcoin
Plausible explanation I read is that SEC doesn't trust the source of In-Kind transfer for ETF in or out. Wanting to trace all transactions from cash > BTC > ETF.
I guess that would make some sense. Gabor had some good points too but it does seem strange that this is a point of contention 
In-kind redemptions doesn't mean Blackrock sends you Bitcoin to your cold wallet... It won't say anything about reserves.
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.
It was a predetermined breaking point in the application…
