Grayscale Opened XRP Trust to In-Kind Creations
The fund now allows institutional participants to exchange XRP directly for shares, adding a new custody partner.
Updated on Oct. 6, 2026 in Investing
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Grayscale has updated its XRP Trust ETF to enable in-kind creations and redemptions for eligible institutional participants. The shift allows these entities to transfer XRP directly into the trust in exchange for shares.
Why it matters
By adding Anchorage Digital Bank as a secondary custodian alongside Coinbase Custody, the trust aims to diversify its asset holding options for institutional investors. This structure change specifically applies to authorized participants, rather than individual shareholders.
The updated trust structure, detailed in a prospectus supplement from October 5, 2026, follows agreements signed on September 29, 2026. While institutional participants can now trade XRP for shares, individual investors cannot redeem shares directly for the underlying asset.
The players
Grayscale
A major digital currency asset manager that offers various crypto-focused investment trusts and ETFs for investors.
Coinbase Custody
A division of the cryptocurrency exchange Coinbase that provides institutional-grade storage and security services for digital assets.
Anchorage Digital Bank
A federally chartered digital asset bank that provides institutional custody and financial services for cryptocurrency holdings.
Macquarie Capital (USA)
The investment banking and advisory arm of the global financial group that provides capital market services.
Virtu Americas
A global financial firm that provides market-making and execution services across various asset classes and exchanges.
The details
Under the new framework, authorized participants can transfer XRP to the trust to receive shares or return shares to receive the underlying crypto asset. Grayscale will now distribute these holdings between Coinbase Custody and Anchorage Digital Bank, with assets at the latter expected to be maintained in cold storage. These operational changes were facilitated by updated agreements with market participants including Macquarie Capital (USA) and Virtu Americas.
Timeline
September 29, 2026: Agreements supporting in-kind orders were signed.
October 5, 2026: Prospectus supplements for the ETF were issued.
Money Landscape
This transition marks a shift in how crypto-linked investment vehicles handle asset creation, moving toward mechanisms commonly used by traditional exchange-traded products. It aligns with an industry-wide push to modernize custody and liquidity management for digital assets within the regulated market.
This update primarily impacts the operational backend for institutional participants and does not change redemption rules for individual retail shareholders. Investors should review their portfolio holdings and consult a financial professional if they have questions about how trust custody changes affect their specific assets.
The takeaway
The move enables more efficient institutional management of the Grayscale XRP Trust through direct in-kind exchanges. Retail investors should remember that they remain restricted from direct asset redemptions and should focus on tracking the trust's expense ratios and liquidity on the NYSE Arca.
Further reading
For more on how crypto-assets are integrated into diversified portfolios, visit our Investing section.
Source note: This article includes information reported by TokenPost.
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