How much does a Schedule K-1 influence your investment decisions?

Hi r/CryptoCurrency,

We’re members of the iShares Digital Assets team and are trying to better understand how investors think about Schedule K-1s.

K-1s often come up as a reason investors avoid certain products, but it isn’t always clear which aspects create the most friction, or how much of the concern comes from firsthand experience versus perceptions.

A few questions for the community:

• Would receiving a K-1 materially affect whether you invest in a product? If so, to what extent:
  • I won't invest in a K-1 issuing ETP under any scenario
  • I prefer a 1099 but a K-1 issuing ETP is okay if the investment merits of the structure more than offset the inconvenience
  • I'm indifferent between a K-1 and a 1099.
• If so, what specifically concerns you: tax-filing complexity, timing of the K-1, tax-preparation costs, retirement-account considerations, or something else?
• Have you personally received and filed a K-1 before?
• If you have, was the experience easier, harder, or about what you expected?
• Is there anything that would change your view on receiving a K-1?