Grayscale Expands In-Kind Crypto Fund Subscriptions to 10 Products

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

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

Grayscale said the structure can reduce trading costs and the burden of holding assets directly. It also gives investors access through brokerage and retirement accounts, allows the holdings to be used as collateral and offers portfolio management tools.

Steve Vannoy, Grayscale’s head of index, said investors are seeking safer and more efficient ways to manage crypto as the market matures. Institutional custody is also becoming more valuable as self-custody and cybersecurity threats such as DeFi hacks become bigger concerns.

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