Drawing attention to a prospectus supplement filed by Grayscale on October 5, crypto analyst Xaif (@Xaif_Crypto) pointed out two significant operational enhancements to the Grayscale XRP Trust ETF, which trades on NYSE Arca under the ticker GXRP.
The documentation establishes that Anchorage Digital Bank has been added as a custodian and permits authorized participants to execute in-kind share creations and redemptions. These updates go beyond mere cosmetic adjustments, representing a substantial evolution for the fund.
Anchorage Digital Joins as Custodian
The Sponsor and Anchorage Digital Bank N.A. finalized the Sixth Amendment to the Master Custody Service Agreement on September 29. As an OCC-chartered national trust bank, Anchorage Digital will store and safeguard a segment of the Trust’s XRP reserves.
Consequently, the ETF now utilizes a dual-custody framework. Coinbase Custody Trust Company, LLC continues to serve as a custodian alongside Anchorage Digital. Utilizing two institutional-level custodians mitigates concentration risk and demonstrates Grayscale’s commitment to strengthening GXRP’s operational framework as institutional demand for XRP rises.
Opening the Door to Institutional Capital
The second modification holds substantial importance for the XRP marketplace. By updating Participant Agreements, the Trust now facilitates in-kind creations and redemptions. Consequently, authorized participants can transfer physical XRP directly into and out of the ETF instead of relying exclusively on cash transactions.
Hedge funds, market makers, and other major institutional players heavily favor in-kind structures. Compared to cash-settled methods, these operations offer superior tax efficiency and minimize market disruption.
Virtu Americas LLC is verified as an authorized participant authorized to execute in-kind transactions. Furthermore, Grayscale maintains the flexibility to onboard additional authorized participants in the future.
Is This Good for XRP?
In-kind redemptions forge a direct connection between institutional fund movements and physical XRP demand. Whenever authorized participants generate new shares in-kind, they are required to purchase actual XRP to complete the process. This creates a structural demand distinct from speculative trading, binding the expansion of the ETF directly to the accumulation of XRP.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
Following its November 2025 launch on NYSE Arca, GXRP’s recent upgrades align it more closely with the operational benchmarks established by spot Bitcoin and Ethereum ETFs. Those investment vehicles experienced continuous institutional capital influxes following the implementation of comparable structural enhancements.
What Comes Next?
Grayscale retains the authority to incorporate additional authorized participants at any point. Expanding this roster broadens the network of entities capable of executing in-kind share creation and redemption. A wider network of authorized participants typically fosters tighter spreads and enhanced price discovery for the ETF. Ultimately, the regulatory filing highlights a financial instrument transitioning from its initial phase toward complete institutional maturity.