Grayscale Opens 10 Crypto Funds To In-Kind Transfers, Letting Investors Swap Tokens For ETF Shares
Grayscale announced on Wednesday that it will allow eligible investors to swap their crypto directly for shares of select Grayscale funds, citing "growing cybersecurity threats, including self-custody and decentralized finance (DeFi) exploits" as a reason to hold digital assets through regulated products.Until now, investors usually had to sell their crypto for cash before they could buy into a Grayscale fund. With an “in-kind transfer,” they can now hand over the coins themselves and receive fund shares in return.“As digital assets mature, investors are seeking more secure and efficient ways to manage their crypto holdings,” said Steve Vanourny, Grayscale’s Head of Index. “In-kind investing bridges direct crypto ownership and traditional portfolio management,” Vanourny added.Grayscale Expands In-Kind Options Across 10 Crypto FundsThe option covered 10 Grayscale products, including the Grayscale Bitcoin Mini Trust ETF (BTC), the Ethereum Staking Mini ETF (ETH), the Solana Staking ETF (GSOL), the XRP Trust ETF (GXRP), the Hyperliquid Staking ETF (HYPG), and the Zcash ETF (ZCSH).According to Grayscale, the Grayscale Bitcoin Mini Trust ETF (BTC) had the largest approximate minimum at over $364,800, while the Solana (SOL) fund had a minimum of about $80,300. Investors will also need to go through an authorized participant, one of the large trading firms that create and redeem ETF shares.That approval mainly changed how authorized participants moved coins in and out of funds. Grayscale’s latest step opened options to eligible investors through those firms, and extended it to 10 products, including funds tied to smaller tokens like Zcash (ZEC), Hyperliquid (HYPE) and Sui (SUI).Bitcoin was one of the top-trending tickers on Stocktwits at the time of writing. was testing the $84,000 level in midday trade, up more than 2% over the past 24 hours. Retail sentiment around BTC on the platform remained in the ‘bearish’ zone, while chatter stayed at ‘low’ levels over the past day.How Does It Compare With Earlier Moves?The move also came after Grayscale’s push to get more of its funds in front of financial advisors. In September, the firm its Digital Assets Next Gen model, a Bitcoin-free portfolio for advisors built from several of the same funds now open to in-kind transfers. Grayscale’s Ethereum Staking Mini ETF took the largest weight in that model at 42.34%, followed by its XRP (GXRP) and Solana (GSOL) funds, as of August 31.However, the idea was not entirely new for Grayscale. Before the Grayscale Bitcoin Trust (GBTC) became an ETF, it sold shares to accredited investors in private placements in exchange for Bitcoin, according to the trust’s annual filing. Those shares came with a minimum holding period of six months.