Bitcoin in-kind is "cheese on the beach"
SEC permits in-kind creation and redemption for crypto exchange-traded products
What I’m reading…
SEC Permits In-Kind Creations and Redemptions for Crypto ETPs
Cryptocurrency Tax War, Part II (tax straddles, shorting against the box)
🔌 Tax Alpha Insider: The Adviser’s Guide to Seeding an ETF In-Kind
AQR: A Brief Guide to Pricing and Taxation of Variable Prepaid Forwards
Earlier this week, SEC announced it would permit in-kind creation and redemption for crypto exchange-traded products for authorized participants.
To be clear, authorized participants include Jane Street and countless other trading desks, not everyday folks. Nonetheless…
“In-kind creation and redemption provide flexibility and cost savings to ETP issuers, authorized participants, and investors, resulting in a more efficient market.”
Jamie Selway, Director of the Division of Trading and Markets (SEC)
But a stock and crypto regulated investment company is possible, and transferring a diversified (stock and crypto) portfolio to it in-kind (via §351) could be a way for normies to get their on-chain assets into traditional custody.
Once there, it could collateralize short positions, tax-aware long/short strategies, or perhaps variable prepaid forward contracts.
Things get interesting when Bitcoin becomes a traditionally marginable asset.
Speaking of hallmarks
🧀🏖️
Problematic
Lazy river
TGIF
p.s. ⚾ Geno is back, and now the Ms have two sluggers with > 35 home runs 🔱