HashKey Capital has launched the HashKey XRP Tracker Fund, the first investment fund in Asia designed to track the performance of XRP.

XRP is currently the third-largest cryptocurrency, with a market capitalization of approximately US$121 billion.

The fund allows professional investors to gain exposure to XRP without owning it directly, offering monthly subscriptions and redemptions in cash or in-kind contributions.

Ripple, the company behind XRP, is the anchor investor and sees this fund as a step toward deeper collaboration with HashKey Capital.

The HashKey XRP Tracker Fund is the third tracker fund introduced by HashKey Capital, which also manages Bitcoin and Ether spot ETFs listed on the Hong Kong Stock Exchange.

Fiona Murray, Managing Director for the Asia-Pacific region at Ripple, stated that the fund aims to meet the institutional demand for regulated cryptocurrency products in Asia.

🔗 Source: The Block

🧠 Food for thought

1️⃣ XRP’s controlled supply mechanism differentiates it from most cryptocurrencies

Unlike Bitcoin and Ethereum, which are mined over time, XRP was pre-mined with its entire 100 billion token supply created at launch in 2012, with no new coins generated since then1.

This fixed supply approach is paired with a controlled release strategy. Ripple placed 80 billion tokens in escrow in 2017, allowing the release of only 1 billion per month maximum to increase transparency and predictability for investors1.

The data shows this mechanism has been effective at controlling market flooding. Of the 32 billion XRP released from escrow over a 32-month period, 26.7 billion were returned unused, demonstrating Ripple’s commitment to responsible supply management1.

This structured approach to tokenomics likely appeals to institutional investors seeking more predictable supply dynamics, making XRP a natural fit for products like the HashKey XRP Tracker Fund targeting professional investors.

2️⃣ XRP’s price history reveals extreme volatility despite institutional positioning

Despite its positioning as an enterprise solution for cross-border payments with 3-second transaction times, XRP has experienced dramatic price swings throughout its history1.

From trading below $0.01 for years to suddenly surging over 51,000% to reach $3.40 in January 2018, XRP has demonstrated extraordinary volatility even by cryptocurrency standards2.