Eligible investors can contribute digital assets directly in exchange for shares of select Grayscale products
Grayscale, the world’s largest digital asset-focused investment platform*, today announced that it is providing eligible investors with the ability to participate in-kind to select Grayscale products. Through in-kind, eligible investors can contribute an underlying digital asset directly in exchange for shares of a Grayscale product, rather than first selling the asset for fiat currency and making a cash investment.
“As digital assets mature, investors are seeking more secure and efficient ways to manage their crypto holdings,” said Steve Vanourny, Head of Index at Grayscale. “With growing cybersecurity threats, including self-custody and DeFi exploits, institutional custody is increasingly valuable. In-kind investing bridges direct crypto ownership and traditional portfolio management, offering access to professionally managed investment products while helping to unlock benefits such as margin and collateral use, estate planning, and broader portfolio flexibility.”
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For investors who already hold digital assets, in-kind investing may provide a more direct way to move existing positions into traditional investment vehicles while maintaining exposure to the underlying asset through shares of the vehicle. Shares may be held through brokerage or retirement accounts and incorporated into conventional portfolio management and estate-planning frameworks.
By holding exposure through shares, investors may also gain access to capabilities that are more difficult or unavailable when holding the underlying token directly. By contributing eligible tokens to a Grayscale product, investors can reduce the operational burden of self-custody and safekeeping while potentially lowering the execution costs associated with transacting on crypto marketplaces. Shares may also be eligible for use as margin or collateral, providing access to traditional lending markets, and can be paired with listed options to hedge exposure, help generate incremental income, or support estate planning.
Grayscale expects in-kind investing to become increasingly relevant as investors take a more sophisticated approach to managing digital asset exposure. The firm welcomes the opportunity to work with eligible investors and their advisors to evaluate whether the strategy may be appropriate for their circumstances and investment objectives.
Clients seeking to access in-kind subscriptions through the primary market must work with an Authorized Participant or another conduit to an Authorized Participant. In-kind subscriptions remain subject to product availability, facilitator fees and applicable terms. Clients should consult their financial, legal, and tax advisors regarding their individual circumstances.
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