Grayscale Expands XRP ETF with In-Kind Transactions
- The Grayscale XRP Trust ETF (GXRP) now allows authorized firms to exchange XRP directly for ETF shares, as per an Oct. 5 SEC filing.
- Anchorage Digital Bank N.A. has been added as a custodian alongside Coinbase Custody Trust Company, which remains the primary custodian.
- The in-kind transaction option became available on Sept. 29, enabling financial firms to exchange large blocks of ETF shares directly with the fund using XRP or cash.
- Virtu Americas LLC and Macquarie Capital (USA) Inc. support both XRP and cash transactions under this new option.
- Grayscale’s GXRP accounted for significant portions of its model portfolios, representing up to approximately one-fourth of the Next Gen portfolio as of August end.
This expansion by Grayscale allows for direct exchange of XRP for ETF shares, potentially reducing trading costs by minimizing market transactions. The inclusion of Anchorage as a custodian diversifies risk management strategies while maintaining Coinbase as the primary provider.
By facilitating in-kind transactions, Grayscale aims to offer cost efficiencies and enhance liquidity for institutional investors engaging with its GXRP product on NYSE Arca stock exchange from November next year (Source).
