XRP poised for increased institutional adoption in Asia. HashKey Capital, the investment arm of HashKey Group, a leading cryptocurrency infrastructure developer, has launched Asia’s first-ever tracker fund dedicated to the XRP token. This marks a significant step toward institutional adoption of XRP in the region.
Ripple, the blockchain company closely associated with XRP, is providing the initial seed investment for the fund, signaling its confidence in the token’s potential for growth and adoption. The tracker fund is specifically designed for professional investors, offering them an opportunity to gain exposure to XRP’s performance in a regulated and structured manner.
With HashKey Group’s reputation as a major player in the cryptocurrency space and Ripple’s backing, this new fund is expected to pave the way for broader institutional participation in XRP investments, solidifying its role in the evolving digital asset ecosystem.
HashKey Launches XRP Tracker Fund, Eyes Future ETF Approval
HashKey has launched its third tracker fund, following its Bitcoin and Ethereum funds, this time focusing on the XRP token. The company chose XRP due to its widespread use by institutions and enterprises worldwide. In a social media statement, HashKey highlighted XRP’s role in cross-border payments, offering faster, cheaper, and more efficient transactions compared to traditional systems like SWIFT.
Unlike ETFs, tracker funds are not traded like stocks throughout the day, so their prices don’t fluctuate in real time. Instead, investors can only buy or sell once daily, resulting in lower liquidity. HashKey also revealed that the XRP tracker fund could potentially transition into an ETF within one to two years, subject to additional regulatory approval.
Earlier this year, Hashkey Group and Bosera received approval to launch the world’s first tokenized money-market ETFs in Hong Kong. This follows the approval of Bitcoin and Ethereum ETFs proposed by Hashkey in April 2024, granted by Hong Kong’s financial regulator. In 2023, Hashkey predicted that crypto ETFs in Hong Kong could grow to make up one-fifth the size of U.S.-based products.
Also Read: Binance Says Governments Worldwide Considering Their Own Crypto Reserves