Grayscale Opened XRP Trust to In-Kind Creations

Institutional investors may now exchange XRP directly for shares of the NYSE Arca-traded trust.

Updated on Oct. 6, 2026 in Investing

Isometric editorial illustration of a heavy stone plinth holding a stack of metallic discs, representing financial asset liquidity. — Grayscale has enabled in-kind creations and redemptions for its XRP Trust, allowing eligible institutional participants to trade the underlying asset for fund shares. AI Illustration. Upload story photo >

Live Poll

Do you trust ETFs that allow direct redemption of crypto assets for the underlying currency?

Grayscale has enabled direct XRP creations and redemptions for its XRP Trust ETF, allowing eligible institutional participants to trade the underlying asset for fund shares. The firm also added Anchorage Digital Bank as a fund custodian to work alongside Coinbase Custody.

Why it matters

This update provides institutional participants with an additional mechanism to manage fund liquidity and asset holdings. By adding a second custodian, Grayscale increases the operational flexibility and security options for the underlying assets held in the trust.

Eligible institutional participants may now submit in-kind orders to transfer XRP directly into the trust in exchange for new shares. The fund utilizes dual custodians, with assets allocated between Coinbase Custody and Anchorage Digital Bank.

The players

Grayscale

This investment firm specializes in digital currency asset management and operates a variety of cryptocurrency-focused trusts.

Anchorage Digital Bank

This institution provides regulated digital asset custody services for institutional clients and serves as a newly added custodian for the fund.

Coinbase Custody

This division provides secure, institutional-grade storage for digital assets and continues to serve as a primary custodian for the trust.

Macquarie Capital (USA)

This global financial services group operates as an investment banking entity and amended its agreements to support the trust's new in-kind order process.

Virtu Americas

This financial services firm provides liquidity and execution services and updated its agreements to support in-kind share orders for the trust.

The details

The updated structure allows Authorized Participants to transfer XRP to the trust for new shares or return shares for XRP, while individual shareholders remain unable to redeem directly for the asset. Agreements to support these in-kind orders were finalized with key partners including Macquarie Capital (USA) and Virtu Americas.

Agreements for in-kind orders were signed on September 29, 2026.
The prospectus supplement for the ETF was issued on October 5, 2026.

Market Dynamics

The transition toward in-kind creation mechanisms reflects a broader industry alignment with standard ETF operational structures. This shift allows the fund to mirror the mechanics established by the SEC-approved spot Bitcoin ETF in-kind creation model, improving efficiency for institutional market makers.

While individual retail shareholders cannot directly redeem their shares for XRP, this institutional-level change may lead to tighter tracking of the fund's net asset value. Institutional participants now have a more efficient way to manage their holdings through the new in-kind transfer process.

The takeaway

The addition of institutional-grade custodians and in-kind creation options signals a maturing operational structure for crypto-focused investment vehicles. Investors should monitor how these structural changes impact liquidity and share price tracking relative to the underlying digital asset.