Grayscale XRP ETF adds in-kind XRP orders and a second custodian

What happened

Grayscale expanded how its XRP ETF handles institutional orders, letting eligible authorized participants use XRP directly for creations and redemptions. The in-kind option became available Sept. 29, according to an Oct. 5 prospectus supplement and related SEC filing. The fund also added Anchorage Digital Bank as another custodian for its XRP holdings.

Under the XRP option, an authorized participant delivers XRP to the fund and receives newly created ETF shares, or returns ETF shares and receives XRP. Cash orders remain available. Grayscale's filing names Virtu Americas LLC and Macquarie Capital (USA) Inc. as firms with agreements supporting both XRP and cash transactions.

Anchorage became eligible to serve effective Oct. 5, and Grayscale intends to place part of the trust's XRP there. Coinbase Custody Trust Company remains the primary provider. Grayscale has not yet disclosed how much XRP it intends to move to Anchorage.

Why it matters

In-kind exchanges reduce the fund's need to buy or sell XRP on the market, which can lower trading costs. Bitwise described potential trading efficiencies from in-kind transactions in a July 31, 2025, announcement. The SEC had allowed authorized firms to exchange bitcoin or ether directly for shares of covered ETFs on July 29, 2025.

The change applies to authorized participants, not ordinary shareholders. Ordinary GXRP shareholders cannot take their shares to Grayscale and withdraw XRP. Grayscale warns that limited participation risks impaired liquidity and wider spreads.

What the data shows

Authorized firms must submit requests to exchange XRP and ETF shares by 3:59:59 p.m. New York time. The exchange is completed one or two business days later, with the timing agreed upon when the request is submitted.

The update appears in an Oct. 5 prospectus supplement and related SEC filing, and the changes were put in place after agreements signed on Sept. 29.

Background

GXRP previously relied on cash orders before the in-kind option. Grayscale began trading GXRP on the NYSE Arca stock exchange on Nov. 24, 2025, following a private offering for eligible investors in September 2024. Grayscale Investments Sponsors, LLC serves as the fund's sponsor.

What is still unclear

• The filing warns that the fund's classification for U.S. tax purposes remains uncertain.
• Grayscale has not yet disclosed how much XRP it intends to move to Anchorage.
• Limited participation risks impaired liquidity and wider spreads, according to Grayscale.
• Service disruptions could interrupt processing, the filing warns.

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