Grayscale Expands In-Kind Crypto Subscriptions to 10 Products, Letting Investors Receive Fund Shares With Tokens

Grayscale is expanding to 10 investment products a structure that lets clients contribute crypto they already hold directly in exchange for fund shares. The approach allows investors to invest in a fund without first selling tokens to raise cash.

The Block reported on October 21 that the lineup includes the Bitcoin Mini Trust ETF and the Ethereum Staking Mini ETF, as well as ETF and trust products tied to Avalanche (AVAX), Chainlink (LINK), Dogecoin (DOGE), Hyperliquid (HYPE), Solana (SOL), Sui (SUI), XRP and Zcash (ZEC). Minimum investments range from about $80,300 to $364,800, depending on the product.

Grayscale said the structure can reduce the burden of holding assets directly and lower transaction costs. It also gives investors access through brokerage and retirement accounts, the ability to use holdings as collateral, and portfolio management tools.

Steve Vannoy, head of Grayscale Indexes, said investors are seeking safer and more efficient ways to manage crypto as the market matures. The value of institutional custody is also rising as cybersecurity threats, including self-custody risks and DeFi hacks, increase.

The U.S. Securities and Exchange Commission approved in-kind creation and redemption for crypto exchange-traded products in July last year. SEC Chair Paul Atkins said at the time that the approval would lower product costs and improve efficiency, benefiting investors.