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) in the long run.
In keeping 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 stated the fund goals to carry “extra institutional capital into regulated XRP merchandise and the broader digital asset ecosystem.”
Shut collaboration with Ripple
In one other X post, HashKey Capital stated the fund marks the start of a better collaboration with Ripple. The 2 companies “are exploring new funding merchandise, cross-border DeFi options, and tokenization —together with the potential for launching a cash market fund (MMF) on the XRP ledger.”
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Within the announcement, HashKey Capital associate Vivien Wong stated the agency will share its connections with monetary establishments, regulators and traders in Asia with Ripple, including:
“Ripple provides 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 in 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 change into an ETF in the long run.
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A boon for XRP’s institutional adoption in Asia
Hank Huang, CEO of Kronos Analysis, a crypto funding agency primarily based in Asia, informed Cointelegraph that “the launch of the XRP Tracker Fund by HashKey Capital marks a pivotal second for institutional adoption” in the area. He stated regulated and clear merchandise like Hashkey’s fund are what institutional traders must enter the market.
“XRP’s confirmed use case in cross-border funds, mixed with HashKey’s sturdy infrastructure, units the stage for significant capital inflows and wider acceptance of crypto property in world finance,“ Huang stated.
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