HashKey Capital, the investment division of HashKey Group, has introduced Asia’s first tracker fund dedicated to the XRP ($2.02) token. This move marks a significant step forward for XRP’s institutional adoption in the region. Unlike ETFs, tracker funds do not trade throughout the day. Instead, investors can only buy or sell them once daily, resulting in lower liquidity.

Ripple, the enterprise blockchain company associated with XRP, has provided the initial capital to seed the fund. By doing so, Ripple demonstrates its commitment to expanding XRP’s footprint among professional investors. HashKey Capital emphasized that institutions worldwide already utilize XRP for real-world applications, especially in the realm of cross-border payments.

XRP Chosen for Its Cross-Border Payment Utility

HashKey Capital explained that it selected XRP because it leads in cross-border payment solutions. The token allows for faster, more cost-effective, and efficient transactions than traditional systems like SWIFT. In a social media announcement, the firm praised XRP’s utility and ongoing institutional traction as the primary reasons for launching the fund.

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While the current fund operates as a tracker, HashKey Capital has indicated that it could evolve into a full-fledged ETF. However, this transition depends on future regulatory approvals. The company expects such an upgrade could occur within one to two years if conditions allow.

Part of a Broader Strategy by HashKey Group

This XRP tracker fund is HashKey’s third such product, following similar funds for Bitcoin and Ethereum. Earlier in 2024, HashKey Group partnered with Bosera to secure approval for the world’s first tokenized money-market ETFs in Hong Kong. 

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Additionally, in April 2024, Hong Kong’s financial regulators approved Bitcoin and Ethereum ETFs proposed by HashKey. HashKey Group has long predicted that Hong Kong’s crypto ETF market could become a major player globally. 

The firm previously estimated that Hong Kong-based crypto ETFs could eventually reach one-fifth the size of their U.S. counterparts. The introduction of this XRP tracker fund further strengthens Hong Kong’s position as a hub for digital asset investment.

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