How do in-kind creations and Anchorage Digital custody change the Grayscale XRP Trust ETF?

The full answer

What was the Grayscale XRP Trust ETF’s creation process before this update?

Grayscale’s quarterly report for the period ended June 30, 2026 said authorized participants could submit orders to create or redeem shares only as “cash orders”, because the agreements with them did not provide for in-kind creations and redemptions [1]. The trust held cash only to carry out those orders [1].

The size of that flow was large in the first half of 2026. The trust took in about 36,272,725 XRP through share creations and paid out about 103,407,401 XRP for redemptions in the six months to June 30, 2026 [1]. At that date it held 55,035,728.016985 XRP [1]. The general mechanics are covered on the page about how XRP ETF creations and redemptions work.

What does in-kind creation mean?

In an in-kind creation, an authorized participant or its designee deposits XRP directly with the trust. In an in-kind redemption it receives XRP directly from the trust [2]. Bitwise’s filing says its trust may create and redeem in-kind for XRP or for cash [2]. Canary’s filing says creation orders may be settled in XRP or in cash [3], and records 25,933,548 XRP contributed in-kind in the six months to June 30, 2026 [3].

Cash redemptions work differently. In 21Shares’ description, the custodian transfers XRP to a counterparty, who sells it, and the cash proceeds go to the trust’s cash account for settlement with the participant [4]. So the sale happens inside the redemption process.

What does Anchorage Digital add as a custodian?

Anchorage Digital Bank, N.A. already appears as a custodian elsewhere in the XRP ETF field. The 21Shares filing for June 30, 2026 lists Anchorage with Coinbase and BitGo as custodians holding the trust’s XRP [4]. Anchorage’s bank status dates from January 13, 2021, when the Office of the Comptroller of the Currency conditionally approved its conversion to a national bank [5].

For custody in general, see whether regulated institutions can safely custody XRP. A narrower question about Grayscale and Anchorage is on the page about whether the Grayscale XRP Trust ETF can use Anchorage Digital.

What does this change in practice?

The changes are structural, and the evidence for their effect is thin so far. The reasoning is in the analysis section above. In-kind orders remove the need for the trust’s cash process in those orders. An added custodian changes where part of the XRP sits. Neither change alters how many XRP the trust holds. That depends on net creations and redemptions, as the page on how much XRP the ETFs hold tracks.

Bitwise’s filing also notes that its XRP custodian can be changed at the sponsor’s sole discretion [6]. Custodian lists are therefore not fixed, and the current one should be read from the latest filing.

What is the strongest caution?

Holdings at one fund can be counted twice if they are added to other XRP pools. Moving XRP in-kind between participants and trusts makes tracking harder, not easier. The page on adding ETF, treasury, DeFi and derivatives XRP together explains why.