Key Takeaways
- • Grayscale expanded the Grayscale XRP Trust ETF (GXRP) operational structure to accept XRP directly for share creations and redemptions, eliminating the requirement for cash-only transactions in the primary market.
- • Anchorage Digital Bank was added as a custodian alongside existing custody arrangements, enhancing the fund's infrastructure.
- • Authorized Participants including Macquarie Capital (USA) and Virtu Americas now have amended agreements enabling in-kind XRP transfers, while cash orders remain available as an alternative mechanism.
- • The changes took effect following SEC filings and prospectus supplements dated October 5, 2026, based on agreements finalized September 29.
- • In-kind redemptions allow institutional participants to receive XRP directly in exchange for redeemed GXRP shares, improving operational flexibility for authorized market makers and institutional users.
Summary
Grayscale Investments has upgraded its XRP Trust ETF (GXRP), which trades on NYSE Arca, to support direct XRP transfers for ETF creation and redemption processes. Previously, the fund operated exclusively through cash-based primary market transactions, requiring Authorized Participants to submit cash orders rather than the underlying XRP asset. The operational change addresses a structural limitation by allowing eligible institutional participants to submit in-kind orders directly involving XRP.
Under the new framework, Authorized Participants may transfer XRP directly to the GXRP trust to create new shares, or redeem existing shares in exchange for XRP withdrawals from the trust. The mechanism operates solely through designated Authorized Participants and does not extend to ordinary GXRP shareholders seeking to redeem holdings for XRP—the in-kind process remains a wholesale, institutional-grade feature. Grayscale's SEC filings identify Macquarie Capital (USA) and Virtu Americas as firms whose participation agreements were amended to support in-kind transactions, though cash orders continue as a parallel option.
The fund also added Anchorage Digital Bank to its custody arrangements, expanding the institutional infrastructure supporting GXRP operations. According to the October 5 prospectus supplement and related SEC filing, these upgrades became effective following agreements signed on September 29, 2026. The shift from cash-only to dual cash-and-in-kind mechanisms reflects operational maturation in the cryptocurrency ETF market, reducing friction in primary market flows and potentially lowering transaction costs for institutional capital participating in GXRP creation and redemption cycles.
Under the new framework, Authorized Participants may transfer XRP directly to the GXRP trust to create new shares, or redeem existing shares in exchange for XRP withdrawals from the trust. The mechanism operates solely through designated Authorized Participants and does not extend to ordinary GXRP shareholders seeking to redeem holdings for XRP—the in-kind process remains a wholesale, institutional-grade feature. Grayscale's SEC filings identify Macquarie Capital (USA) and Virtu Americas as firms whose participation agreements were amended to support in-kind transactions, though cash orders continue as a parallel option.
The fund also added Anchorage Digital Bank to its custody arrangements, expanding the institutional infrastructure supporting GXRP operations. According to the October 5 prospectus supplement and related SEC filing, these upgrades became effective following agreements signed on September 29, 2026. The shift from cash-only to dual cash-and-in-kind mechanisms reflects operational maturation in the cryptocurrency ETF market, reducing friction in primary market flows and potentially lowering transaction costs for institutional capital participating in GXRP creation and redemption cycles.
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