Grayscale has launched in-kind investment mechanisms for ten of its exchange-traded products. This update allows authorized participants to exchange underlying digital assets directly for fund shares, bypassing the need for cash transactions during the creation and redemption process.
The new operational model took effect on October 21, 2026. Grayscale implemented these changes by updating agreements with custodians and trading firms, including Jane Street and Virtu. The initiative covers a range of products, such as the Grayscale Bitcoin Mini Trust ETF, the Grayscale Dogecoin Trust ETF, and the Grayscale Zcash ETF.
This transition follows the July 29, 2025, decision by the US Securities and Exchange Commission to approve in-kind creation and redemption for spot crypto ETPs. Previously, these products relied exclusively on cash-based transactions, similar to standard commodity ETPs.
By enabling in-kind transfers, the firm aims to improve operational efficiency and potentially lower execution costs. Data indicates that in-kind activity for Bitcoin ETPs grew from 28% in March to 62% by June, highlighting the industry shift toward this model for managing share prices and asset values.
