HashKey Capital has announced the launch of Asia’s first XRP tracker fund, with initial backing from Ripple. The move signals a new step in XRP’s institutional adoption as HashKey expands its portfolio of crypto investment products.
Ripple, the enterprise blockchain firm connected to the XRP token, has seeded the initial capital for the fund. The product will be available to professional investors and is expected to appeal to institutions interested in regulated exposure to XRP.
Real-time trading functions do not apply to tracker funds, whereas exchange-traded funds operate in real-time. Entity investors get a single opportunity to conduct transactions on this fund structure at fixed prices each trading day.
This makes the fund less liquid than exchange-traded funds. HashKey projects a change in this tracker fund to an ETF within one to two years when Hong Kong approves the required regulations.
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Three tracker funds released by HashKey Capital now accompany Bitcoin and Ethereum-based versions as their newest additions. XRP received a selection from the firm based on its status as a leading payment network across borders, while serving to produce inexpensive, fast financial operations.
The statement from HashKey explained how institutions across the globe implement XRP for practical use. According to the company, the timing of XRP transactions outmatches traditional systems such as SWIFT, making it appropriate for business usage.
XRP Tracker Fund Could Lead to Asia’s First XRP ETF
HashKey also emphasized that Hong Kong’s crypto-friendly regulations could pave the way for a future XRP ETF. The firm recently received regulatory approval, alongside Bosera, to launch the first tokenized money-market ETFs globally in Hong Kong.
The city’s financial regulator approved Bitcoin and Ethereum ETFs during the first half of this year, while interest in licensed crypto investment products increased. According to HashKey projections, Hong Kong’s crypto ETF market will develop into a sector that represents approximately twenty percent of the United States crypto ETF market value.
Ripple’s participation and regulatory progress in Hong Kong enable the future development of XRP-linked financial products through the XRP tracker fund. As a result of HashKey’s launch, professional investors in Asia will likely gain increased trust in altcoin-based funds.
Conclusion
Introducing this Ripple-backed XRP tracker fund marks a major development in Asian institutional crypto adoption. If regulatory conditions align, an XRP ETF could soon become a reality.
