[DigitalToday reporter Yoonseo Lee] Asset manager Grayscale has introduced an "in-kind transfer" feature that allows investors to swap cryptocurrencies they hold for stakes in its exchange-traded products (ETPs) without converting them into cash.

Cryptopolitan, a blockchain media outlet, reported on Oct. 21 that the feature will first apply to 10 Grayscale crypto ETPs. Eligible investors can receive product shares equivalent to the digital assets they hold, instead of selling coins first and depositing cash as before.

The 10 products include those tied to bitcoin, solana, ethereum, dogecoin (DOGE), chainlink (LINK) and zcash (ZEC), as well as products linked to avalanche (AVAX), hyperliquid (HYPE), sui (SUI) and XRP. This effectively covers Grayscale's products overall.

Minimum investment amounts vary by product depending on the share price. Based on disclosed figures, the minimum for the Grayscale Solana Staking ETF (GSOL) was the lowest at about $80,300, while the Bitcoin Mini Trust ETF (BTC) was the highest at about $364,800. The amounts are estimates and may change with cryptocurrency price moves.

The company said the in-kind approach can reduce investors' self-custody burden and lower transaction costs. It said it can ease the burden of managing cryptocurrency wallets directly and cut steps involved in selling and then buying back.

This structure is becoming more common across the market. In trading activity for bitcoin ETPs that allow in-kind transfers, the share accounted for by this method rose to 62 percent in June from 28 percent in March. Grayscale's move is seen as reflecting this market trend.

Grayscale introduced itself as the world's largest digital asset investment platform based on its assets under management (AUM) as of Sept. 30. The feature expands routes for investors holding cryptocurrencies directly to invest in its ETPs without cashing out. If the approach spreads, trading practices in the crypto ETP market could also change.

The key going forward is whether the in-kind method leads to actual inflows. With 10 products covered, investment demand could expand not only for bitcoin and ethereum but also for solana, XRP and zcash. Minimum investment amounts differ widely by product, and actual usage is expected to vary depending on investors' capital size and market conditions.

Introducing in-kind investing at Grayscale: contribute eligible digital assets directly in exchange for shares of a Grayscale product. Benefits for investors include: - Reduced burden of self-custody - Potentially lower execution costs - Incorporation into conventional portfolio management In-kind is now available for 10 Grayscale products: - Grayscale Avalanche Staking ETF ($GAVA) - Grayscale Bitcoin Mini Trust ETF ($BTC) - Grayscale Chainlink Trust ETF ($GLNK) - Grayscale Ethereum Staking Mini ETF ($ETH) - Grayscale Dogecoin Trust ETF ($GDOG) - Grayscale Hyperliquid Staking ETF ($HYPG) - Grayscale Solana Staking ETF ($GSOL) - Grayscale Sui Staking ETF ($GSUI) - Grayscale XRP Trust ETF ($GXRP) - The Zcash ETF ($ZCSH) Learn more about in-kind: https://t.co/BALS0BDcpL