- HashKey Capital has just launched the continent’s first-ever XRP Tracker Fund, in collaboration with Ripple itself.
- The new ETP could eventually be converted into an exchange-traded fund (ETF), depending on its reception within the Asian market.
- It is aimed at making the process simpler for investors who are interested in XRP, while remaining compliant with regulations in the Asian financial markets.
One of the largest Hong Kong based crypto investment firms, HashKey Capital has just launched the continent’s first-ever XRP Tracker Fund. This fund is backed by Ripple itself as its anchor investor, and is geared towards meeting institutional demand for XRP.
The new ETP could eventually be converted into an exchange-traded fund (ETF), depending on its reception within the Asian market, and the regulatory conditions that follow. This milestone stands as the beginning of a partnership between Ripple and Hashkey, with both likely planning on further collaborations in the future. Here are some of the details to keep in mind.
The Birth of Asia’s First XRP Tracker Fund
This partnership and the fund between both firms was announced on 18 April, with the new XRP Tracker Fund being the third tracker product launched by HashKey Capital. The recent development comes after its earlier Bitcoin and Ethereum fund offerings, and is designed to mirror the performance of XRP, similar to a regular ETF.
The fund will allow institutional investors to gain exposure to XRP without having to hold the token directly. It is aimed at making the investment process simpler, while remaining compliant with regulations in the Asian financial markets.
Investors who wish to subscribe can do so either via in-cash or in-kind contributions, before choosing between monthly redemptions and subscriptions. In a bid to maintain transparency, the fund is benchmarked by CF Benchmarks, which also supports several other crypto ETFs from all over the world.
Ripple as Anchor Investor
XRP’s parent company, Ripple is not just offering moral support in this regard. According to the announcement Ripple stands as the funds initial capital provider. It acts as the anchor investor and helps to make sure that the fund gets off the ground with the financial strength it needs to attract more investors.
The move shows that Ripple remains committed to its strategy to push the use cases of XRP beyond retail users and further into the finance sector. According to a statement from Vivien Wong, a partner at HashKey Capital, Ripple backing the fund would unlock more opportunities for Hashkey’s product. “Ripple offers us the opportunity to collaborate on more products across several sectors like cross-border payments, defi and blockchain adoption on an enterprise level.” she noted.
Institutional Demand Is Heating Up
As it stands, there is a growing appetite among institutional investors for digital assets (which include crypto). However, there are many who are still hesitant to engage with the space directly. Their concerns stem from issues like custody, regulation and volatility, not to mention security. Tracker funds like the one that HashKey has just launched, come in as a solution to this problem by offering a middle ground.
The said middle ground allows more investors to gain exposure to crypto assets (like XRP in this case). The tracker fund isn’t just another product. It is likely to become another bridge that connects traditional finance to the crypto space. Investors who have been waiting on the sidelines for a secure way to invest in XRP via the Asian markets will now have the opening they have been looking for.
