HashKey Capital Launches First Regulated XRP Tracker Fund in Asia

HashKey Capital has launched the first regulated XRP Tracker Fund in Asia, marking a significant milestone in the cryptocurrency investment landscape. This fund is designed to closely follow the price of XRP, the third-largest crypto asset by market capitalization, which is widely used in Ripple’s global payments infrastructure. The XRP Tracker Fund is HashKey Capital’s third tracker product, following its previous offerings tied to Bitcoin and Ethereum.

The fund is intended to meet institutional demand for simplified, compliant access to digital assets. It provides a new gateway for professional investors to gain exposure to XRP without directly holding the token. Investors can subscribe using cash or in-kind contributions, with redemptions and subscriptions processed monthly. The product is benchmarked by CF Benchmarks, an established index provider that supports various crypto-linked ETFs across key global markets.

Ripple has committed to providing the initial capital for the fund, positioning itself as the anchor investor in this offering. Vivien Wong, Partner at HashKey Capital, highlighted XRP’s growing relevance in enterprise use cases from payments to asset tokenization and value storage. She stated that the fund simplifies access to a high-utility asset and meets growing demand for quality crypto investment products.

The partnership between HashKey Capital and Ripple is expected to extend beyond this initial fund. Wong emphasized that HashKey’s strong network of financial institutions, regulators, and investors in Asia would benefit Ripple’s broader ambitions. On the other hand, Ripple’s blockchain and payment expertise could allow the Asian company “to collaborate on more investment products and solutions across cross-border payment solutions, DeFi, and enterprise blockchain adoption.”

HashKey’s move shows that institutional interest in XRP is gaining steam. Over the past months, several firms have applied for a spot XRP ETF. Market observers believe the chances of approval for these products are high, considering the US Securities and Exchange Commission (SEC) has acknowledged these applications instead of rejecting them, as in previous years. Besides that, the recent launch of several XRP-related financial investment vehicles has also increased the likelihood of an eventual launch for an ETF product.

HashKey Capital’s launch of the XRP Tracker Fund is a significant development in the cryptocurrency market, particularly in Asia. It addresses the growing demand for regulated investment products that cater to institutional investors, providing a structured investment vehicle that tracks the price movements of XRP. This move is expected to attract more institutional capital into the XRP ecosystem, potentially driving further adoption and integration of the digital currency in various financial applications.

The introduction of this fund marks a pivotal moment for the cryptocurrency market in Asia, as it enhances the overall credibility and legitimacy of XRP as an investment asset. As regulatory frameworks continue to evolve, more financial institutions are likely to explore similar investment vehicles, further bridging the gap between traditional finance and the burgeoning world of digital assets. This development underscores the potential for cryptocurrencies to play a more significant role in global financial markets, offering investors new avenues for diversification and growth.