HashKey Capital has launched Asia’s first XRP Tracker Fund, giving professional investors a regulated way to gain exposure to XRP without holding the asset directly. 

The fund’s launch, announced in an Apr. 18 press release, marks the latest push to unite traditional finance with digital assets. The XRP Tracker Fund will mirror the price of XRP, the native token of Ripple’s (XRP) payment network. Ripple, an established player in cross-border blockchain transfers, will serve as the anchor investor. 

The fund offers a simpler and safer way to invest in XRP without having to deal with self-custody, which has become a major concern for institutional players interested in the crypto markets. Vivien Wong, Partner at HashKey Capital, described XRP as “one of the most innovative digital assets today,” adding that the new fund will simplify access to the asset in the region.

“XRP stands out as one of the most innovative cryptocurrencies in today’s market, attracting global enterprises who use it to transact, tokenize, and store value. With the first XRP Tracker Fund available in the region, we simplify access to XRP, catering to the demand for investment opportunities in the very best digital assets.”

— Vivien Wong, Partner at HashKey Capital

The tracker fund is HashKey’s third digital asset product, following its Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds already trading on the Hong Kong Stock Exchange. Shares in the XRP fund will be available via monthly subscriptions and redemptions, either through cash or in-kind contributions. It will use pricing data from CF Benchmark, a well-known index provider used in ETF products across the U.S. and Asia-Pacific. 

In addition to the fund, Ripple and HashKey also plan to team up on more projects in the future. The two companies will work together to develop new products in tokenization, decentralized finance, and cross-border payments, including possible projects like a money market fund based on the XRP Ledger, Wong said.

The launch comes at a key moment for Ripple. A U.S. court recently approved a joint motion by Ripple and the SEC for a 60-day pause in their appeal proceedings to facilitate settlement discussions. Ripple has also been expanding its services, including integrating RLUSD stablecoin into its network and acquiring trading firm Hidden Road, which handles over $10 billion in daily trading volume.