Asia’s first XRP investment fund launches with Ripple as early backer

Key Takeaways

Asia’s first XRP tracker fund launched by HashKey Capital with Ripple as an early investor.
The fund will supply institutional buyers publicity to XRP with out direct possession challenges.

HashKey Capital, a part of HashKey Group’s main digital asset monetary community, is introducing Asia’s first funding product linked to XRP, now the third-largest crypto asset by market cap.

The fund, also referred to as the HashKey XRP Tracker Fund, is designed for skilled buyers who need regulated publicity to XRP with out the trouble of managing possession, custody, or buying and selling, the group shared in an announcement on X.

Ripple is backing the fund as each an early and anchor investor. Based on HashKey Capital, Ripple’s involvement is instrumental in bridging conventional finance and Web3 innovation.

By means of the brand new providing, the group goals to offer a important on-ramp for establishments looking for seamless entry to blockchain-based monetary companies.

The HashKey XRP Tracker Fund permits subscriptions and redemptions in money and in type each month. It joins HashKey Capital’s rising checklist of crypto funding merchandise, together with Bitcoin (3008.HK) and Ethereum (3009.HK) ETFs.

Discussing the launch, Vivien Wong, Accomplice, Liquid Funds at HashKey Capital, mentioned that XRP has established itself as a powerhouse in cross-border funds, enabling sooner and cheaper transactions in comparison with conventional networks like SWIFT.

Its blockchain, the XRP Ledger, can also be a rising hub for tokenization of real-world belongings (RWAs). This reinforces XRP’s utility and enchantment to monetary establishments and enterprises worldwide.

“XRP stands out as one of the vital progressive cryptocurrencies in in the present day’s market, attracting international enterprises who use it to transact, tokenize, and retailer worth,” mentioned Wong. “With the primary XRP Tracker Fund obtainable within the area, we simplify entry to XRP, catering to the demand for funding alternatives in the perfect digital belongings.”

CF Benchmark, recognized for launching ETF merchandise within the US and Asia Pacific, will function the fund’s benchmark supplier.

“Institutional buyers are wanting to entry regulated merchandise all over the world, and that is precisely what the HashKey XRP Tracker Fund will ship within the Asia-Pacific area,” mentioned Fiona Murray, Managing Director APAC at Ripple.

Whereas at present structured as a personal tracker fund obtainable to skilled buyers, HashKey Capital hinted that the fund may transition right into a full-fledged exchange-traded fund (ETF) inside the subsequent one to 2 years, pending regulatory approvals.

Past the Tracker Fund, HashKey Capital and Ripple are exploring a variety of joint initiatives, the asset supervisor mentioned. These embrace creating new funding merchandise, cross-border decentralized finance (DeFi) options, and tokenization methods.

Hashkey Capital added that the 2 entities are in talks concerning the launch of a cash market fund tokenized on the XRP Ledger.

XRP-based funding merchandise acquire floor

The launch of the HashKey XRP Tracker Fund comes as funding merchandise linked to XRP are gaining traction all over the world.

Brazil has grow to be the world’s first nation to approve a spot XRP ETF, the Hashdex Nasdaq XRP Index Fund, which shall be listed on the B3 inventory alternate. The Hashdex-managed fund will immediately maintain XRP, offering buyers with regulated and clear publicity to the foremost crypto asset.

Within the US, a number of functions for spot XRP ETFs are underneath SEC assessment, and trade specialists are optimistic about their eventual approval.

Earlier this month, Teucrium kicked off the primary US-listed leveraged XRP ETF, which noticed sturdy debut buying and selling volumes. The product is meant for short-term buying and selling and doesn’t immediately maintain XRP; as an alternative, it makes use of swaps referencing European XRP ETPs.