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- HashKey Capital launches Asia’s first XRP Tracker Fund for certified institutional investors.
- The fund tracks XRP’s price and eliminates self-custody risks for institutional investors.
- Ripple and HashKey Capital plan further collaboration on tokenization, DeFi, and cross-border payments.
HashKey Capital has established Asia’s first XRP Tracker Fund to enable certified institutional investors to invest in XRP. The fund tracks the price of XRP, the native currency of the Ripple payment protocol that is built on blockchain technology. Ripple, a major player in cross-border blockchain transfers, serves as the anchor investor.
The fund’s creation was announced in a press release on April 18th and is viewed as the next ambitious step in the effort to integrate finance and digital assets. Hence, the specialist fund will help institutional investors to get direct exposure to XRP without having to manage custody risks common in the existing market.
HashKey Third Digital Product
According to Vivien Wong, a Partner at HashKey Capital, the fund was aimed at bringing more efficiency to the XRP market in terms of demand. She emphasized that it was among the most innovative digital currencies today, attracting the attention of major enterprises around the world. These enterprises use it for trading, representation of value, and storage of value. Wong said that it would cater to the increasing demand for safer investment products in the digital asset market, especially in the region.
The XRP Tracker Fund is the third digital asset product offered by HashKey. This comes after the proliferation of Bitcoin and Ethereum Exchange Traded Funds (ETFs) that are listed on the Hong Kong Stock Exchange.
Source: HashKey Capital
Investors will be able to subscribe to the fund on a monthly basis and also request a redemption in cash and in-kind contributions. Evaluating the pricing data for the fund shall be obtained from the CF Benchmark. Which is an index supplier of ETFs across the U.S and the Asia-Pacific region.
The new fund offers the investors an easier and safer opportunity to get into XRP. Institutional players especially benefit from the lack of self-custody requirements that are often associated with direct ownership of digital assets.
This refers to an important issue that most institutional investors often consider when they are venturing into the world of cryptocurrencies. Thereby, it enables institutions to get exposure to XRP. Without having to deal with the management of the actual digital currencies. Which proves to be rather challenging.
Ripple Acquires Hidden Road
Furthermore, XRP Tracker Fund joins forces with both HashKey Capital and Ripple. With the intent to expand the cooperation in the future. They sought to create products relating to tokenization, DeFi, and international payments. One of the possible initiatives is the establishment of a money market fund that would operate on the XRP Ledger. These steps represent the interest of both companies towards the development of digital assets in the worldwide financial system.
Ripple continues to diversify its services and products, including the integration of the RLUSD stablecoin. Lately, Ripple and the U.S. Securities and Exchange Commission (SEC) mutually agreed to suspend their activities for 60 days in order to negotiate the settlement. Ripple has also acquired Hidden Road, a trading firm with more than 10 billion USDT daily trading volume. Which helps to consolidate the company’s standing in the market.
