In describing what would happen if all of them died and the trust had to be shut down:
"...money could move from SPY I to SPY II by passing a basket of S&P 500 stocks from SPY I to a bank trading desk, and from that trading desk to SPY II, without ever selling it in the market..."
"...the assets of SPY I would pretty efficiently move over to SPY II, and the price of the underlying stocks would not be affected. Some retail investors wouldn’t want to move, because the move would trigger taxable gains for them, but over 20 years that problem would mostly go away as they cash out naturally. By 2039, the trust’s accelerated end date, SPY I would be pretty small and the real S&P 500 index ETF action would be in SPY II. No one would have to dump stock along the way, and the short-selling supervillain would never be rewarded for his evil deeds."
If SPY ceased to exist what would be the effect on the markets?
By law funds require a determines termination. They tied it to the death of "random" kids. The fund will end in 2118 or 20 years after the last of these
eleven kids (chosen, "voluntarily" by their parents, as token people) dies
It' relatively clear and straightforward, but the article does not explain what happens when the fund terminates.
Of course it’s a good story.