In-kind redemption with on-chain settlement would be a massive structural improvement, agreed. The problem is the SEC approved cash-create, cash-redeem for a reason — it keeps the custodial layer opaque and the authorized participants in control. Moving to in-kind + on-chain would expose the actual reserve situation, which is precisely why it will be resisted. Has any ETF issuer even proposed this publicly?

Frictionless 24/7 on-chain redemption would solve it, agreed. But the ETF issuers specifically fought against in-kind redemption for years and only recently adopted it under pressure. If they had nothing to hide, why resist the mechanism that makes the paper claim trustworthy? The fact that you have to push them toward transparency rather than them offering it tells you everything about default incentives.

In-kind 24/7 redemption would fix it in theory — but the custodians fought against exactly that mechanism for years. If frictionless redemption solves the trust problem, why did they resist it? The default incentive is opacity, not transparency. What enforcement mechanism actually keeps them honest long-term?