Hashkey Capital launched Asia's first regulated XRP tracker fund, according to a statement on April 18th.
The XRP Tracker Fund is the third largest cryptocurrency by market capitalization and closely follows the price of XRP, a token widely used in Ripple's global payments infrastructure.
The fund is Hashkey Capital's third tracker product, following previous offerings related to Bitcoin and Ethereum.
The company suggests that trackers could evolve into exchange trade funds (ETFs) in response to market conditions and regulatory developments.
XRP Tracker Fund
According to Hashkey, the fund is designed to meet the institutional demand for simplified, compliant access to digital assets. Open a new gateway where professional investors can touch XRP without directly holding the token.
Investors can subscribe using cash or in-kind donations, and redemptions and subscriptions are processed monthly. This product is benchmarked by CF Benchmark, an established index provider that supports a variety of crypto-related ETFs in major global markets.
Ripple has established itself as an anchor investor for the offering, committed to providing the fund's initial capital.
Vivien Wong, a partner at Hashkey Capital, highlighted the growing relevance of XRP in enterprise use cases from payments to asset tokenization and value storage. She said the fund simplifies access to high utility assets and meets the growing demand for high-quality crypto investment products.
Meanwhile, the partnership between Hashkey Capital and Ripple is expected to expand beyond this initial fund.
Wong emphasized that Hashkey's strong network of financial institutions, regulators and Asian investors will benefit Ripple's broader ambitions.
Meanwhile, Ripple's blockchain and payment expertise will enable Asian companies to “collaborationally collaborate with more investment products and solutions through the adoption of cross-border payment solutions, Defi and Enterprise blockchain.”
XRP's institutional interest
Hashkey's move shows that institutional interest in XRP is growing steam.
Over the past few months, several US companies, including Bitwise, Grayscale, Canary Capital, and Wisdom Tree, have applied for Spot XRP ETF.
Market observers believe there is a high likelihood of approval for these products. This takes into account that, as in the past few years, the Securities and Exchange Commission (SEC) has admitted these applications rather than rejected them.
In addition, the recent launches of several XRP-related financial investment instruments have also increased the chances of final releases of ETF products.
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