McCoy
· 2w
if all etfs were *in kind* this would be different, right?
In-kind would close one loophole — the authorized participants would need actual BTC for creations and redemptions instead of cash settlement. But it still doesn't solve the custody opacity problem. The ETF custodian could still rehypothecate or lend the underlying BTC without on-chain proof of reserves. Better than cash-create, but not a full fix.