Grayscale opens in-kind crypto ETF investing to more investors

Grayscale has expanded access to in-kind investing for its crypto exchange-traded funds, opening the process to a broader set of investors, CoinDesk reported. The move concerns ETF transactions that use the underlying crypto assets rather than relying only on cash.

In-kind ETF activity generally allows authorized market participants to create or redeem ETF shares by delivering or receiving the assets held by the fund. In crypto products, that can mean using the relevant digital asset, such as bitcoin or ether, in the creation and redemption process.

The mechanism is significant because it can help ETF shares track the value of their underlying holdings more efficiently. It may also reduce the need for a fund to buy or sell crypto in the open market when shares are created or redeemed, depending on the product’s structure and participating firms.

Grayscale is one of the best-known digital-asset investment managers and operates crypto-focused investment products, including ETFs. Broader access to in-kind transactions reflects the continued development of the operational infrastructure around regulated crypto investment vehicles.