Grayscale Just Made a Big Upgrade to Its XRP ETF

The filing confirms Anchorage Digital Bank has joined as an additional custodian, and authorized participants can now conduct in-kind creations and redemptions of shares. These are not cosmetic changes. They signal a meaningful maturation of the product.

Anchorage Digital Joins as Custodian

On September 29, the Sponsor and Anchorage Digital Bank N.A. entered into the Sixth Amendment to the Master Custody Service Agreement. Anchorage Digital is a national trust bank chartered by the OCC. It will provide custody and safekeeping services for a portion of the Trust’s XRP holdings.

The ETF now operates with dual custody. Coinbase Custody Trust Company, LLC remains a custodian alongside Anchorage Digital. Two institutional-grade custodians holding the Trust’s assets reduce concentration risk. It also signals that Grayscale is building a more robust infrastructure around GXRP as institutional interest in XRP grows.

Opening the Door to Institutional Capital

The second upgrade carries significant weight for XRP markets. The Trust has amended Participant Agreements to allow in-kind creations and redemptions. Authorized participants can now move actual XRP directly in and out of the ETF, rather than transacting only in cash.

Large institutional participants, including market makers and hedge funds, strongly prefer in-kind mechanisms. These transactions are more tax-efficient and reduce market impact compared to cash-based processes.

Virtu Americas LLC is confirmed as one authorized participant able to conduct in-kind activity. Grayscale retains the ability to add further authorized participants going forward.

Is This Good for XRP?

In-kind redemptions create a direct link between institutional capital flows and actual XRP demand. When authorized participants create new shares in-kind, they must acquire real XRP to do so. That structural demand is separate from speculative buying. It ties ETF growth directly to XRP accumulation.

GXRP began trading on NYSE Arca in November 2025. These upgrades bring it closer to the operational standards seen in the Bitcoin and Ethereum spot ETFs. Those products saw sustained institutional inflows after similar structural improvements.

What Comes Next?

Grayscale can add more authorized participants at any time. Each addition expands the pool of entities capable of creating and redeeming shares in-kind. A larger authorized participant network generally supports tighter spreads and more efficient price discovery for the ETF. The filing shows a product moving from its early stage toward full institutional readiness.