Grayscale XRP ETF Now Supports Direct XRP Creations and Redemptions

Grayscale has updated its XRP ETF to allow direct creations and redemptions using XRP, providing institutional investors with a new way to interact with the fund. The change applies to the Grayscale XRP Trust ETF (GXRP), which is listed on NYSE Arca. Authorized Participants and their designated firms can now submit orders in XRP, enabling them to exchange the asset directly with the fund for new shares or redeem shares for XRP.

The process is restricted to Authorized Participants and their designated firms, meaning individual GXRP shareholders cannot directly redeem their shares for XRP. The update also introduces Anchorage Digital Bank as a custodian, joining Coinbase Custody as the primary custodian. Grayscale can allocate XRP between the two, with XRP held at Anchorage expected to remain in cold storage, except for temporary hot-wallet transfers for fund operations.

The changes were included in an Oct. 5 prospectus supplement, following agreements signed on Sept. 29. Firms like Macquarie Capital (USA) and Virtu Americas have amended their agreements to support in-kind orders. The new terms provide the fund with additional custody options and allow participating institutions to use XRP itself for creating or redeeming ETF shares.