Another big step has come in the world of cryptocurrency. Hong Kong-based financial institution HashKey Capital has launched Asia’s first XRP tracker fund with the support of Ripple. This initiative is not only a strategic step towards increasing the utility and demand for XRP Ledger (XRPL), but it is also being planned to transform it into a full-fledged exchange-traded fund (ETF) soon.
What is XRP Tracker Fund?
XRP Tracker Fund is a special type of investment fund, designed specifically for institutional investors. The purpose of this fund is to track the price of XRP, giving large investors a simple and transparent way to invest in XRP.
Through this fund, investors will get direct exposure to XRP, without technical complexities. It is an attempt to bridge the gap between the traditional investment world and crypto assets.
Strategic support from Ripple
HashKey Capital has strategic support from Ripple for this fund. Ripple, the major promoter and developer of XRP, is looking to expand its network and the use of XRP Ledger in Asia through this initiative.
Ripple recently launched a 1 billion XRP XRP XRP fund in countries like Japan and Korea, which aims to support developer grants, startup investments, and community building. Now, Ripple’s support of HashKey’s XRP Tracker Fund is another big step in this direction.
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Fund Features
This tracker fund is special in many ways:
- Focused on institutional investors: This fund is specifically designed for large institutional investors who believe in digital assets and want exposure to XRP.
- Ripple’s support: Ripple’s participation gives this fund legitimacy and credibility, which increases investor confidence.
- Helping to adopt XRP Ledger: Capital raised from the fund will be used to invest in apps, services and developments based on XRP Ledger.
- A step towards ETF: Ripple and HashKey plan to convert this tracker fund into a full-fledged XRP ETF in the future.
What is an ETF and its importance
An ETF i.e. Exchange-Traded Fund, is an investment instrument that trades on a stock exchange and tracks the price of a particular asset such as gold, index or cryptocurrency.
If HashKey’s XRP tracker fund converts into an ETF, it will turn XRP into an institutional investment product, which can increase its exposure and trade volume manifold. Bitcoin ETFs in the US and Europe have already made crypto a part of mainstream investing, and now the possibility of XRP ETF in Asia could be a revolutionary step in this direction.
Ripple’s growing reach in Asia
Ripple has been strengthening its presence in East Asia in recent months. In June 2024, the company launched a special XRPL fund for Japan and Korea, investing 1 billion XRP. The initiative aims to support developers, startups, and community projects based on XRPL.
All these initiatives by Ripple indicate that the company is working to establish XRP as a complete blockchain ecosystem instead of just a transaction token.
Conclusion
This XRP tracker fund launched by HashKey Capital opens a new chapter in the crypto investment sector in Asia. This strategic partnership with Ripple will increase the usage, acceptance, and credibility of the XRP Ledger. Also, the ETF plan is bringing another big possibility for investors.
This fund can be a great opportunity for institutional investors interested in XRP, and in the future when the XRP ETF is launched, it can prove to be a big gamechanger for Ripple and the XRP community.
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