IRS Issues Notice on In-Kind ETF Redemptions, Says Seyffart
- —IRS is not challenging ordinary ETF in-kind creation mechanics
- —The focus is on novel uses of in-kind transactions
- —The notice could alter tax outcomes for traders and funds
- —Market participants must reevaluate strategies over potential tax liabilities
Why it matters: Tighter rules on in-kind redemptions could reduce ETF tax efficiency and affect trading volumes.
Source: Coinfomania