Ripple, in association with HashKey Capital, has launched Asia’s first XRP Tracker Fund to bring institutional investors into the XRP space without them having to directly trade the asset. This allows the fund to manage wallet activities and other trading tasks on their behalf.
Overview of the XRP Tracker Fund
The XRP Tracking Fund, supported by Ripple, uses CF Benchmarks as its index. It offers investors monthly subscription and redemption options that accept cash or in-kind assets. According to HashKey Capital, XRP plays a role in very fast and cost-effective cross-border transactions, which is why it appeals to institutional investors. At the time of writing, the XRP coin trades at around $2 and has declined 1.2% in 24 hours.
Institutional Demand for XRP
XRP excels in fast and cheap money transfers, outperforming traditional systems like SWIFT. Additionally, the XRP Ledgers support tokenisation of real-world assets, which adds to its value in the financial market. According to Ripple APAC, the fund was launched in response to the growing demand for regulated crypto investment products.
If the regulator approves, the XRP Tracking Fund may turn into a full-scale ETF in the next one to two years, which will in turn, improve access for institutions to XRP.
Ripple’s Growth Strategy
Ripple’s recent $1.25 billion buyout of Hidden Road is a move that sees the company integrate blockchain tech with traditional finance. Notably, Hidden Road has obtained a U.S. broker-dealer license, indicating it is now in the prime brokerage space.
Furthermore, this acquisition puts Ripple in a position to use the XRP Ledger for improved trade settlement and operational efficiency, in line with the company’s bigger picture in the financial space.
As institutional interest in XRP grows, this fund may play a role in the wider adoption of digital assets in the financial system, which in turn reinforces Ripple’s position in both markets.
