- HashKey Capital launches the first XRP tracker fund in Asia, targeting professional investors and enhancing institutional access to XRP.
- Ripple has seeded the initial investment into the XRP fund, reinforcing its support for enterprise use of the token in global payments.
- The XRP tracker fund may evolve into an ETF within two years, depending on regulatory progress in Hong Kong’s crypto investment sector.
HashKey Capital has launched a new XRP tracker fund in Asia, marking a strategic move to increase the token’s adoption among institutional investors. This product, targeted at professional investors, is the first of its kind in the region and reflects growing demand for regulated crypto investment tools.
The initial capital for the fund stemmed from Ripple because it operates as the company behind the XRP token. Ripple maintains its commitment to XRP adoption by financial institutions through this latest step, which aims to enlarge XRP’s utility in corporate payment structures and cross-border transactions.
Institutional Access to XRP Expands Beyond Traditional Systems
According to HashKey Capital, XRP gained selection for their new fund because institutional organizations stepped up their adoption of XRP to execute fast and economical international transactions. XRP offers institutions an efficient substitute for the older SWIFT payment system by enhancing transaction settlement processes, according to the firm.
This XRP fund is the third crypto tracker product from HashKey Capital, following its earlier Bitcoin and Ethereum versions. Tracker funds differ from exchange-traded funds (ETFs) in that they are not traded throughout the day and have lower liquidity, with trades executed only once daily. Despite this, HashKey sees potential in transitioning the XRP tracker into a full ETF, pending regulatory clearance.
Regulatory Progress in Hong Kong Supports Expansion
Earlier this year, HashKey Group, in collaboration with Bosera, received regulatory approval to launch tokenized money-market ETFs in Hong Kong. The region’s regulators also approved Bitcoin and Ethereum ETFs in April 2024. These steps are part of broader efforts to establish Hong Kong as a competitive crypto investment hub.
HashKey previously forecasted that crypto ETFs in Hong Kong could eventually grow to one-fifth the size of similar U.S. products. With the XRP tracker fund now in place, institutional access to XRP is likely to expand, aligning with the company’s long-term strategy to diversify its crypto offerings and meet growing market demand.
