Grayscale Enhances XRP ETF with Direct XRP Transactions

Grayscale has enhanced its XRP Trust ETF (GXRP) by introducing new features that allow direct use of XRP for fund creations and redemptions. This update, detailed in a prospectus supplement filed on October 5, enables certain institutional participants to transfer XRP directly into and out of the fund, offering more flexibility in how shares are managed.

The most significant change is the ability for eligible Authorized Participants to submit in-kind orders. This means XRP can now be transferred directly to the trust for the creation of new shares, and existing shares can be redeemed by transferring XRP back out. While cash orders remain available, this new mechanism streamlines the process for institutional investors.

Grayscale has also added Anchorage Digital Bank as an additional custodian for GXRP’s XRP holdings, alongside Coinbase Custody. This move is part of Grayscale’s risk-management strategy as the trust continues to grow. The filing specifies that XRP held with Anchorage will primarily remain in cold storage, with temporary use of hot wallets for necessary transactions.

The changes were implemented following agreements signed on September 29 and are now reflected in the updated prospectus. GXRP continues to trade on NYSE Arca, and the new features aim to provide more operational efficiency for institutional participants.