Grayscale Expands In-Kind Subscriptions to 10 Crypto ETFs and Trusts
(4 hours ago) · 1 source · Summarized by CryptoBipto
Grayscale has expanded its in-kind subscription and redemption mechanism to cover 10 of its cryptocurrency ETFs and trusts. This allows authorized participants to create or redeem fund shares using the underlying crypto assets directly, rather than cash. The expansion broadens access to a feature that has been gradually rolled out across Grayscale's product lineup.
WHY IT MATTERS
When you buy shares of a crypto ETF or trust, you are not buying crypto directly — you are buying a share of a fund that holds crypto on your behalf. Behind the scenes, large financial firms called 'authorized participants' create and redeem those fund shares. With 'in-kind' subscriptions, these firms can hand over actual cryptocurrency (like Bitcoin) to create new shares, instead of using cash that then has to be converted into crypto. Think of it like trading baseball cards directly instead of selling them for cash first and then buying new ones — it is more direct and can be more efficient. This expansion by Grayscale means more of its products now support this more streamlined process, which can help keep the price of fund shares closer to the actual value of the crypto they hold.
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- theblock.co
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