HashKey Capital breaks ground with Asia's first XRP Tracker Fund

HashKey Capital has launched the first regulated XRP Tracker Fund in Asia, according to an April 18 statement.

The XRP Tracker Fund closely follows the price of XRP, the third-largest crypto asset by market capitalization and a token widely used in Ripple’s global payments infrastructure.

The fund is HashKey Capital’s third tracker product, following its previous offerings tied to Bitcoin and Ethereum.

The firm has suggested that, depending on market conditions and regulatory developments, the tracker could be evolved into an exchange-traded fund (ETF).

XRP Tracker Fund

According to HashKey, the fund is designed to meet institutional demand for simplified, compliant access to digital assets. It would open 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, and redemptions and subscriptions are 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, emphasized 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.

Meanwhile, 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.”

XRP’s institutional interest

HashKey’s move shows that institutional interest in XRP is gaining steam.

Over the past months, several US firms, including Bitwise, Grayscale, Canary Capital, and WisdomTree, 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.