Ripple Becomes Anchor Investor in HashKey Capital's XRP Tracker Fund

Targeting seasoned investors, it's a regulated fund offering institutions easy exposure to XRP without needing to directly own, hold, or trade the token.

HashKey Capital has launched the first fund in Asia to track the price of XRP, aiming to provide institutions with an optimal way to gain exposure to the token without needing to directly own, hold, or trade it.

The new fund, HashKey XRP Tracker Fund, is a fully regulated product that will be sold to seasoned investors only. It is also being launched as a closed-end fund with a clear time horizon, in contrast to open-ended funds.

The fund will track the performance of XRP, aiming to provide investors with returns that closely follow the price movements of the token. This will enable institutions to easily invest in XRP without having to deal with the complexities of setting up their own token holdings and trading operations.

The fund is also expected to be less risky than investing in a single asset, especially considering the volatility of the cryptocurrency market.

This initiative highlights the growing interest in and use of XRP for cross-border payments and asset tokenization. It also showcases the efforts of HashKey to expand its offerings beyond Bitcoin and Ethereum trackers.

Aiming to provide optimal solutions for institutions to participate in the digital asset space, HashKey Capital is expanding its product suite to cater to the evolving needs of its investor base.

Highlighting the institutional demand for alternative investment products in Asia, HashKey is rolling out Point of Interest in anticipation of optimal opportunities arising within the next 1-2 years.

Upon approval by the relevant regulators, the tracker fund could evolve into a full-fledged exchange-traded fund (ETF).

However, currently, the fund is structured as a closed-end fund with a clear time horizon, catering to seasoned investors who prefer less risky investment vehicles.

This move follows the footsteps of several US firms that have already launched similar funds tracking cryptocurrencies. Notably, ProShares was the first to introduce a Bitcoin futures ETF in 2021, paving the way for a wave of crypto-related ETFs to hit the market.

This initiative by HashKey Capital marks a significant step in expanding the institutional accessibility of cryptocurrencies in the Asian market.