HashKey Capital Launches Asia’s First XRP Tracker Fund with Ripple as Key Investor

HashKey Capital, a prominent digital asset management firm based in Hong Kong, has officially launched the HashKey XRP Tracker Fund, marking the debut of Asia's first investment vehicle designed to track the performance of XRP, the digital currency at the core of Ripple’s global payment network. The announcement, made on April 18, signals a significant step in bridging traditional finance and Web3, offering institutional investors an easy way to gain exposure to XRP without the complexities of direct asset management.

A New Investment Opportunity for Professional Investors

The new fund, which is aimed at professional investors, will facilitate monthly liquidity, allowing participants to subscribe and redeem shares either through cash or in-kind subscriptions. By bypassing the technical hurdles often associated with direct ownership of XRP, HashKey Capital is offering a solution for institutional investors who wish to engage with this prominent cryptocurrency in a regulated manner.

Ripple's Strategic Role in the Fund

Ripple, a key partner and anchor investor in the fund, will play a crucial role in this new initiative. This deepening collaboration between Ripple and HashKey Capital, which already has listed ETFs for Bitcoin (BTC) and Ether (ETH) on the Hong Kong Stock Exchange, aims to explore new avenues for digital asset investment. Ripple’s backing of the fund comes as part of a broader strategy to advance regulated crypto products for institutional use, particularly within the Asia-Pacific region.

XRP’s Value Proposition: Faster and Cost-Effective Cross-Border Payments

Vivien Wong, Partner at HashKey Capital, remarked that XRP’s unique role in facilitating faster and more cost-effective cross-border payments makes it an ideal asset for institutional investment. She emphasized the growing demand for accessible investment opportunities in innovative digital assets, noting that the fund offers a strategic entry point for those looking to capitalize on XRP's value proposition in the global payments space.

A Step Toward the Future: XRP as a DeFi Asset

The HashKey XRP Tracker Fund is the third tracker product from HashKey Capital, following the success of their Bitcoin and Ethereum ETFs. XRP’s proven utility in cross-border transactions has positioned it as a leading asset in decentralized finance (DeFi), and the fund will be benchmarked against CF Benchmark, a recognized firm specializing in the development of ETF products globally.

Strategic Alliance Between HashKey Capital and Ripple

This initiative also represents a first step in a broader strategic alliance between Ripple and HashKey Capital, which aims to explore additional financial products and innovations, including potential tokenization solutions and further investment opportunities built on the XRP Ledger. The collaboration also envisions future offerings in the realms of enterprise blockchain adoption and decentralized finance.

Ripple’s Push for More Regulated Crypto Products in Asia

Fiona Murray, Managing Director of Ripple’s Asia-Pacific operations, noted that this partnership is part of the company's larger push to introduce more regulated cryptocurrency products to institutions across the region, enhancing the broader ecosystem for digital assets.

In the coming months, both firms will work closely to explore additional opportunities for growth within Asia’s rapidly developing digital asset market, with a specific focus on tokenized financial products and cross-border payment solutions.