Key Takeaways
- Asia’s first XRP tracker fund launched by HashKey Capital with Ripple as an early investor.
- The fund will offer institutional investors exposure to XRP without direct ownership challenges.
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HashKey Capital, part of HashKey Group’s leading digital asset financial network, is introducing Asia’s first investment product linked to XRP, now the third-largest crypto asset by market cap.
The fund, also known as the HashKey XRP Tracker Fund, is designed for professional investors who want regulated exposure to XRP without the hassle of managing ownership, custody, or trading, the team shared in an announcement on X.
Ripple is backing the fund as both an early and anchor investor. According to HashKey Capital, Ripple’s involvement is instrumental in bridging traditional finance and Web3 innovation.
Through the new offering, the team aims to provide a critical on-ramp for institutions seeking seamless access to blockchain-based financial services.
The HashKey XRP Tracker Fund allows subscriptions and redemptions in cash and in kind every month. It joins HashKey Capital’s growing list of crypto investment products, including Bitcoin (3008.HK) and Ethereum (3009.HK) ETFs.
Discussing the launch, Vivien Wong, Partner, Liquid Funds at HashKey Capital, said that XRP has established itself as a powerhouse in cross-border payments, enabling faster and cheaper transactions compared to traditional networks like SWIFT.
Its blockchain, the XRP Ledger, is also a growing hub for tokenization of real-world assets (RWAs). This reinforces XRP’s utility and appeal to financial institutions and enterprises worldwide.
“XRP stands out as one of the most innovative cryptocurrencies in today’s market, attracting global enterprises who use it to transact, tokenize, and store value,” said Wong. “With the first XRP Tracker Fund available in the region, we simplify access to XRP, catering to the demand for investment opportunities in the very best digital assets.”
CF Benchmark, known for launching ETF products in the US and Asia Pacific, will serve as the fund’s benchmark provider.
“Institutional investors are eager to access regulated products around the world, and this is exactly what the HashKey XRP Tracker Fund will deliver in the Asia-Pacific region,” said Fiona Murray, Managing Director APAC at Ripple.
While currently structured as a private tracker fund available to professional investors, HashKey Capital hinted that the fund could transition into a full-fledged exchange-traded fund (ETF) within the next one to two years, pending regulatory approvals.
Beyond the Tracker Fund, HashKey Capital and Ripple are exploring a wide range of joint initiatives, the asset manager said. These include developing new investment products, cross-border decentralized finance (DeFi) solutions, and tokenization strategies.
Hashkey Capital added that the two entities are in talks about the launch of a money market fund tokenized on the XRP Ledger.
XRP-based investment products gain ground
The launch of the HashKey XRP Tracker Fund comes as investment products linked to XRP are gaining traction around the world.
Brazil has become the world’s first country to approve a spot XRP ETF, the Hashdex Nasdaq XRP Index Fund, which will be listed on the B3 stock exchange. The Hashdex-managed fund will directly hold XRP, providing investors with regulated and transparent exposure to the major crypto asset.
In the US, multiple applications for spot XRP ETFs are under SEC review, and industry experts are optimistic about their eventual approval.
Earlier this month, Teucrium kicked off the first US-listed leveraged XRP ETF, which saw strong debut trading volumes. The product is intended for short-term trading and does not directly hold XRP; instead, it uses swaps referencing European XRP ETPs.
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