Hong Kong-based crypto funding agency HashKey Capital introduced the launch of an XRP fund, with plans to transform it into an exchange-traded fund (ETF) sooner or later.
In line with an April 18 announcement, the fund, formally titled the HashKey XRP Tracker Fund, is reportedly “the primary funding fund in Asia designed to trace the efficiency of XRP.”
XRP developer Ripple will function the fund’s anchor investor. In a separate X post, HashKey Capital mentioned the fund goals to deliver “extra institutional capital into regulated XRP merchandise and the broader digital asset ecosystem.”
Shut collaboration with Ripple
In one other X post, HashKey Capital mentioned the fund marks the start of a better collaboration with Ripple. The 2 corporations “are exploring new funding merchandise, cross-border DeFi options, and tokenization —together with the opportunity of launching a cash market fund (MMF) on the XRP ledger.”
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Within the announcement, HashKey Capital companion Vivien Wong mentioned the agency will share its connections with monetary establishments, regulators and buyers in Asia with Ripple, including:
“Ripple gives us the chance to collaborate on extra funding merchandise and options throughout cross-border cost options, decentralized finance (DeFi), and enterprise blockchain adoption.”
A Hong Kong XRP ETF within the works?
The XRP (XRP) Tracker Fund is HashKey Capital’s third tracker fund and follows the agency’s Bitcoin (BTC) and Ether (ETH) ETF merchandise. The corporate famous that this product may grow to be an ETF sooner or later.
Associated: XRP: Why it’s outperforming altcoins — and what comes next
A boon for XRP’s institutional adoption in Asia
Hank Huang, CEO of Kronos Analysis, a crypto funding agency based mostly in Asia, advised Cointelegraph that “the launch of the XRP Tracker Fund by HashKey Capital marks a pivotal second for institutional adoption” within the area. He mentioned regulated and clear merchandise like Hashkey’s fund are what institutional buyers have to enter the market.
“XRP’s confirmed use case in cross-border funds, mixed with HashKey’s strong infrastructure, units the stage for significant capital inflows and wider acceptance of crypto property in world finance,“ Huang mentioned.
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