HashKey launches new fund backed by Ripple, targeting Asia XRP ETF

HashKey Capital receives early investment from Ripple, launches Asia's first XRP Tracker Fund, aims to convert it into an ETF.

Hong Kong-based crypto investment firm HashKey Capital has announced the launch of a Ripple (XRP) fund, with plans to convert it into an exchange-traded fund (ETF) in the future.

The product, officially named the HashKey XRP Tracker Fund, is reportedly "Asia's first investment fund designed to track the performance of XRP," according to an April 18 announcement.

XRP developer Ripple will serve as an anchor investor in the fund. In a separate X platform post, HashKey Capital said the fund aims to "introduce more institutional money to regulated XRP products and the broader digital asset ecosystem."

Deepen cooperation with Ripple

In another X platform post, HashKey Capital said the fund marks the beginning of a closer collaboration with Ripple. The two companies are "exploring new investment products, cross-border decentralized finance (DeFi) solutions, and tokenization projects, including the possibility of launching a money market fund (MMF) on the XRP ledger."

In the announcement, HashKey Capital partner Vivien Wong said the company will share its connections with financial institutions, regulators and investors in Asia with Ripple, adding: "Ripple provides us with the opportunity to collaborate on more investment products and solutions in areas such as cross-border payment solutions, DeFi and enterprise-level blockchain applications."

Hong Kong XRP ETF in the works?

The XRP Tracker Fund is HashKey Capital's third tracking fund, following the company's launch of Bitcoin (BTC) and Ethereum (ETH) ETF products. The company said this product may also be transformed into an ETF in the future.

XRP's positives in terms of institutional adoption in Asia

Hank Huang, CEO of Asia-based crypto investment firm Kronos Research, told Cointelegraph that "HashKey Capital's launch of the XRP Tracker Fund marks a key moment for institutional adoption in the region." He said that regulated and transparent products like HashKey are exactly what institutional investors need to enter the market.

"XRP's mature application scenarios in cross-border payments, combined with HashKey's strong infrastructure, lay the foundation for large-scale capital inflows and wider recognition of crypto assets in the global financial sector," Huang said.