Grayscale announced an expansion allowing eligible investors to swap tokens directly for fund shares across 10 digital asset products without converting to cash first. Following the SEC's July 2025 regulatory approval for in-kind crypto ETP transactions, the feature aims to lower execution costs and transfer self-custody risks to institutional managers. However, minimum contribution thresholds ranging from $80,300 for Solana to $364,800 for Bitcoin keep the program focused on high-capital participants.
Grayscale expands in-kind subscription offerings
- ▪The 10 Grayscale products eligible for in-kind transfers are tied to Bitcoin, Ethereum, Avalanche, Chainlink, Dogecoin, Hyperliquid, Solana, Sui, XRP, and Zcash.
- ▪Grayscale announced an expansion allowing eligible investors to exchange cryptocurrencies directly for shares across 10 of its exchange-traded products without first selling tokens for cash on October 21, 2026.
Minimum investment requirements for products
- ▪Grayscale's product-specific minimums as of October 20, 2026, include approximately $95,550 for the Dogecoin Trust ETF, $257,000 for the XRP Trust ETF, and $322,600 for the Zcash ETF.
- ▪Estimated minimum investment amounts across Grayscale's 10 eligible products range from approximately $80,300 for the Solana Staking ETF to $364,800 for the Bitcoin Mini Trust ETF as of October 20, 2026.
Benefits of direct in-kind transfers
- ▪In-kind transfers eliminate intermediate cash conversion steps, potentially reducing execution costs and trading fees for investors.
- ▪Converting tokens into fund shares allows crypto investors to access traditional brokerage accounts, retirement portfolios, margin arrangements, collateral usage, and estate-planning tools.
- ▪Direct in-kind transfers shift digital asset custody responsibilities to institutional third-party custodians, reducing self-custody burdens and cybersecurity threats such as DeFi exploits for investors.
Risks and limitations for investors
- ▪Investors utilizing Grayscale's in-kind transfers may still face price spreads, execution delays, tax obligations, and lack protections of the Investment Company Act of 1940.
- ▪Investors must arrange primary-market in-kind subscriptions through an authorized participant or approved intermediary, incurring facilitator fees and market risk exposure.
SEC approval of in-kind transactions
- ▪Former SEC Chairman Paul Atkins stated in July 2025 that approving in-kind creations and redemptions builds a rational regulatory framework and makes crypto products less costly and more efficient.
- ▪The U.S. Securities and Exchange Commission approved in-kind creations and redemptions for spot crypto exchange-traded products in July 2025.
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