Hong Kong-based crypto investment firm HashKey Capital has announced the launch of an XRP fund, with plans to convert it into an exchange-traded fund (ETF) in the future.
According to an April 18 announcement, the fund, officially titled the HashKey XRP Tracker Fund, is reportedly “the first investment fund in Asia designed to track the performance of XRP.”
Furthermore, XRP developer Ripple will serve as the fund’s anchor investor, seeding the initial investment. In a separate X post, HashKey Capital said the fund aims to bring “more institutional capital into regulated XRP products and the broader digital asset ecosystem.”
Close collaboration with Ripple
In another X post, HashKey Capital explained that the fund marks the beginning of a closer collaboration with Ripple. The two firms “are exploring new investment products, cross-border DeFi solutions, and tokenization—including the possibility of launching a money market fund (MMF) on the XRP ledger.”
Related: Ripple vs. XRP vs. XRP Ledger: What’s the difference?
In the announcement, HashKey Capital partner Vivien Wong said the firm will share its connection with financial institutions, regulators and investors in Asia with Ripple:
“Ripple offers us the opportunity to collaborate on more investment products and solutions across cross-border payment solutions, decentralized finance (DeFi), and enterprise blockchain adoption.”
A Hong Kong XRP ETF in the works?
The XRP (XRP) Tracker Fund is HashKey Capital’s third tracker fund and follows the firm’s Bitcoin (BTC) and Ether (ETH) ETF products. The company noted that this product could also become an ETF in the future.
Related: XRP: Why it’s outperforming altcoins — and what comes next
A boon for XRP’s institutional adoption in Asia
Hank Huang, CEO of Cronos Research, a crypto investment firm based in Asia, told Cointelegraph that “the launch of the XRP Tracker Fund by HashKey Capital marks a pivotal moment for institutional adoption” in the region. He said regulated and transparent products like Hashkey’s fund are what institutional investors need to enter the market.
“XRP’s proven use case in cross-border payments, combined with HashKey’s robust infrastructure, sets the stage for meaningful capital inflows and wider acceptance of crypto assets in global finance,“ Huang said.
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