There are rumors that the Federal Reserve may utilize XRP for the blockchain component of its FedNow payment system, although no official confirmation has been made.

This fund is HashKey's third tracker product, following successful offerings for Bitcoin and Ethereum, and it may be converted into an ETF within one to two years, pending regulatory approval.

The launch is viewed as an indirect regulatory approval for XRP, bolstering its legitimacy among financial institutions in the region.

Designed to simplify the investment process, the fund addresses institutional concerns regarding direct ownership and storage security of cryptocurrencies.

The proven use case of XRP in cross-border payments, combined with HashKey's infrastructure, is expected to lead to increased capital inflows and broader acceptance of cryptocurrencies in global finance.

Ripple's ongoing legal battle with the US SEC is nearing resolution, which may encourage more US banks to adopt Ripple's payment services.

At least seven firms are competing to launch a spot XRP ETF, with the SEC set to respond to Grayscale's filing by late May 2025.

Interest in XRP ETFs is rising, with several firms, including Teucrium Investment Advisors, receiving approval for leveraged XRP ETFs, while others await SEC decisions on their products.

Vivien Wong, a partner at HashKey Capital, emphasized that the fund meets the growing demand for quality crypto investment products and simplifies access to a high-utility asset.

HashKey Capital has launched Asia's first XRP Tracker Fund, with Ripple as an early investor, aiming to enhance institutional access to XRP.

Subscriptions can be made in cash or in-kind contributions, with monthly processing for redemptions and subscriptions, and the fund is benchmarked by CF Benchmarks.

Despite a nearly 20% price decline for XRP over the past month, institutional confidence remains strong, supported by Ripple's progress in its legal battle with the SEC.