That what AI says:

Investing in ETFs without in-kind redemptions can have certain benefits. In-kind redemptions are a fundamental feature of the ETF asset class, allowing ETFs to avoid selling securities to raise cash to meet redemptions, which can prevent capital gains distributions and reduce the ETF's tax burden.

This can lead to tax efficiency, as ETFs typically pass through fewer capital gains to investors due to the in-kind creation/redemption process.

Additionally, in-kind redemptions can help to insulate shareholders of the fund from capital gains arising from the buying and selling of securities.

However, it's important to note that ETFs without in-kind redemptions are not common, as in-kind redemptions are a fundamental feature of the ETF asset class.

Therefore, while there are potential benefits to investing in ETFs without in-kind redemptions, it is unlikely to find such ETFs in the market. 

 Yeah seems to be for reducing CGT events. Cash only seems to be a closed fiat system step to reduce laundering by middlemen brokers.