Grayscale’s XRP exchange-traded fund (ETF) has expanded how institutions exchange tokens for shares while adding another provider to safeguard its holdings. The changes could improve trading efficiency and broaden custody arrangements for the fund’s XRP holdings
Key TakeawaysGrayscale XRP ETF lets authorized firms exchange XRP directly for shares.Anchorage adds XRP custody; Coinbase remains the primary custodian.Cash remains an option for institutions creating or redeeming ETF shares. GXRP Opens Direct XRP Exchanges Alongside Cash The Grayscale XRP Trust ETF (GXRP) expanded its institutional exchange options, an Oct. 5 filing with the U.S. Securities and Exchange Commission (SEC) disclosed. The digital asset manager’s new in-kind process permits direct XRP delivery for creation and redemption. Separately, the trust added Anchorage Digital Bank N.A. as another custodian
The in-kind option became available Sept. 29 for authorized participants, financial firms allowed to exchange large blocks of ETF shares directly with the fund. Virtu Americas LLC and Macquarie Capital (USA) Inc. have agreements supporting both XRP and cash transactions. Under the XRP option, these firms or their representatives deliver XRP to the fund and receive newly created ETF shares. They can also return ETF shares and receive XRP in exchange
Grayscale Investments Sponsors, LLC serves as the fund’s sponsor. The SEC filing states
“The sponsor may engage additional authorized participants in the future, and such authorized participants may be able to conduct creations and redemptions in-kind, in cash, or both.”
The changes apply to an existing product that gives individuals brokerage exposure without managing the underlying cryptocurrency. Grayscale began trading GXRP on the NYSE Arca stock exchange on Nov. 24, 2025, following a private offering for eligible investors in September 2024
Exchanging XRP directly for ETF shares reduces the fund’s need to buy or sell tokens on the market, potentially lowering trading costs. Crypto asset manager Bitwise described potential trading efficiencies from in-kind transactions in a July 31, 2025, announcement. The firm identified possible cost savings and a smaller gap between the prices investors pay to buy ETF shares and receive when selling them
On July 29, 2025, the SEC allowed authorized firms to exchange bitcoin or ether directly for shares of covered ETFs, which previously required cash for those transactions. That change opened the way for bitcoin-to-ETF conversions at major issuers. Grayscale’s filing describes a similar process for GXRP, using XRP as the asset exchanged for ETF shares
Financial firms address pricing gaps by creating shares when their market price exceeds the value of the XRP backing each share, after expenses, or redeeming them when the price falls below that value. Grayscale warns that limited participation risks impaired liquidity, meaning reduced ease of trading, and wider spreads
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 filing also warns that service disruptions could interrupt processing and that the fund’s classification for U.S. tax purposes remains uncertain
Anchorage became eligible to serve effective Oct. 5, with Grayscale intending to place part of the trust’s XRP there. Coinbase Custody Trust Company remains the primary provider. Grayscale will determine the allocation between providers as part of risk management as the trust grows
GXRP represents one of the largest allocations in Grayscale’s new adviser model portfolios. These portfolios suggest how financial advisers could divide investments among the firm’s funds. As of Aug. 31, GXRP accounted for 11.92% of the Leaders portfolio and 26.11% of Next Gen, which excludes bitcoin
XRP, which Grayscale classified as a global payments asset, is used to pay transaction fees on the XRP Ledger. Custodians safeguard the fund’s tokens by protecting the private keys needed to transfer them. Anchorage requires multiple key pieces to be combined to authorize a transfer, reducing reliance on any single piece
This structure differs from holding and exchanging cryptocurrency directly, with providers controlling the assets on the trust’s behalf. Grayscale expects Anchorage’s holdings and associated keys to remain in cold storage, meaning offline protection, while allowing temporary use of internet-connected wallets for settlement and expenses. The sponsor pays Anchorage’s fees
The agreement requires commercial crime insurance or a fidelity bond to protect against loss of client assets in Anchorage’s custody, with aggregate limits of at least $100 million. Coverage is shared across customers and is not guaranteed to cover all losses. Contractual liability limits further restrict recovery, potentially leaving some losses uninsured and uncompensated
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