Crypto investment company HashKey Capital, situated in Hong Kong, has revealed the introduction of an XRP fund, with intentions to transform it into an exchange-traded fund (ETF) thereafter.
Per an April 18 declaration, the fund, officially named the HashKey XRP Tracker Fund, is reportedly “the inaugural investment fund in Asia aimed at tracking the performance of XRP.”
XRP creator Ripple is set to act as the principal investor for the fund. In a distinct X tweet, HashKey Capital indicated that the fund aspires to introduce “greater institutional capital into regulated XRP products and the wider digital asset landscape.”
Intimate partnership with Ripple
In another X tweet, HashKey Capital expressed that the fund signifies the commencement of an enhanced partnership with Ripple. The two organizations “are investigating new investment offerings, cross-border DeFi initiatives, and tokenization — including the potential launch of a money market fund (MMF) on the XRP ledger.”
Related: Ripple vs. XRP vs. XRP Ledger: What’s the distinction?
In the announcement, HashKey Capital partner Vivien Wong mentioned that the firm will leverage its connections with financial entities, regulators, and investors in Asia alongside Ripple, stating:
“Ripple presents us with the chance to partner on additional investment products and solutions across cross-border payment methods, decentralized finance (DeFi), and enterprise blockchain integration.”
An XRP ETF from Hong Kong in progress?
The XRP (XRP) Tracker Fund represents HashKey Capital’s third tracking fund and follows the company’s Bitcoin (BTC) and Ether (ETH) ETF offerings. The firm noted that this product might also evolve into an ETF in the future.
Related: XRP: Reasons for outpacing altcoins — and future expectations
An advantage for XRP’s institutional acceptance in Asia
Hank Huang, CEO of Kronos Research, a crypto investment firm located in Asia, informed Cointelegraph that “the initiation of the XRP Tracker Fund by HashKey Capital signifies a crucial milestone for institutional acceptance” in the area. He pointed out that regulated and transparent offerings like Hashkey’s fund are essential for institutional investors to engage in the market.
“XRP’s established utility in cross-border payments, paired with HashKey’s solid infrastructure, prepares the groundwork for substantial capital inflows and broader acceptance of crypto assets in global finance,” Huang remarked.
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