Summary:

In April 2025, HashKey Capital, in collaboration with Ripple, launched Asia's first fund product tracking XRP, attracting market attention in the crypto-friendly region of Hong Kong. This article will analyze the development trends of crypto funds in Hong Kong, various investment opportunities, and how Web3 lawyers can provide landing services for enterprise clients from the perspective of legal compliance in fund establishment.

01｜What signal was released when the XRP fund landed in Hong Kong?

Recently, HashKey Capital announced its cooperation with Ripple to establish Asia's first fund tracking XRP in Hong Kong, which has been recognized by the Hong Kong Securities and Futures Commission (SFC). This is not only an important compliance step for Hong Kong following BTC and ETH but also marks that Hong Kong is becoming a new highland for global crypto fund establishment.

This releases two important signals:

  • Compliance is the only channel for mainstream crypto funds, and Hong Kong regulators are actively embracing high-quality projects;

  • The variety of traceable crypto assets is continuously expanding, extending from BTC, ETH to XRP, and in the future, more native tokens of public chains may be included in fund targets.


02｜What types of mainstream crypto funds are there in Hong Kong?

According to current market observations, there are mainly the following types of virtual asset-related funds in Hong Kong:

1️⃣ Spot-type crypto funds

  • Such as Victory Securities' BTC spot fund

  • Investment targets: Mainstream coins such as BTC, ETH

  • Investor threshold: Professional investors (AUM ≥ 8 million HKD)

  • Advantages: Clear regulatory framework, complete custody mechanisms

2️⃣ Synthetic/derivative funds

  • Indirectly access the market using futures contracts, crypto ETFs, structured products

  • Higher risk, suitable for advanced asset managers

3️⃣ Web3 Entrepreneur Funds / Ecological Funds

  • Investment fields include startup protocols, token projects, DePIN, etc.

  • Typically established in forms such as VC, FOF, SPV, etc.

  • Most are registered or established operational structures in Hong Kong

4️⃣ Cross-border Funds / Mainland Structure Migration to Hong Kong

  • An increasing number of mainland funds are choosing to establish sub-funds through Hong Kong to achieve compliant asset allocation, facilitate overseas expansion, and connect with international investment markets.


03｜Trends in Hong Kong crypto fund policies and market opportunities

The Hong Kong SFC opened virtual asset fund sales licenses to professional investors as early as 2023, and from 2024, it will promote the application process for spot ETFs. The latest case is the 'compliant XRP fund'. This means that the Hong Kong fund market is entering an 'open window period'.

The current types of compliant funds in Hong Kong are illustrated as follows:

Type Investment Target Investor Qualification SFC License Requirement Spot Fund BTC, ETH, XRP, etc. Professional investors Yes Synthetic Product Fund Index/derivative/ETF Professional investors Yes Web3 Eco Fund Token projects, NFTs, etc. Flexible, some require a license depending on the structure

Potential innovation directions in the future:

  • Thematic coin funds (such as Layer2, public chain ecology, etc.)

  • Blockchain infrastructure funds (investing in nodes, DePIN)

  • DAO funds (investment pools governed by the community)


04｜Where are the opportunities for traditional investors and Web3 entrepreneurs?

Since the mainland has not yet opened public or private crypto funds, establishing structures through Hong Kong has become a practical path for many high-net-worth individuals, family offices, and Web3 entrepreneurial projects:

Suitable participants include:

  • ✅ High-net-worth clients interested in investing in digital assets

  • ✅ Start-up teams intending to issue tokens or design token economic models

  • ✅ VC or FO that is restricted in the mainland but hopes to carry out compliant fundraising overseas

  • ✅ Project parties that hope to conduct equity + Token dual-round financing

Hong Kong's advantages include:

  • Bilingual legal system in Chinese and English

  • Aligning with international regulatory logic (such as AML/KYC, fund licenses, custody mechanisms, etc.)

  • A mature fund service market with abundant resources


Conclusion: Web3 investment opportunities on the 'compliance bridge'

With the successful issuance of HashKey Capital's XRP fund in Hong Kong, it is undoubtedly at the crossroads of compliance and innovation. For entrepreneurs and investors, this is not only a new opportunity but also a legal and compliant new path to the future.

If you wish to explore the establishment of crypto funds in Hong Kong, virtual asset compliant investment, Token issuance, and other fields, feel free to leave a message in the background 【Hong Kong Fund】, and I will provide you with one-on-one practical advice.

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What can we do for you?

As a lawyer focused on Web3 legal services, I am currently providing the following compliance service support for clients in mainland China and Hong Kong and Macau:

✅ Fund structure design

Assist clients in selecting suitable establishment forms (private funds, trusts, investment companies, SPVs, etc.) and completing registration, legal document preparation, and SFC connections.

✅ SFC licensing consultation

Provide consultation on the licensing application process and document preparation (such as license type 1, license type 9), assist in arranging compliance personnel, KYC process design, etc.

✅ Intermediary resource connections

Assist in connecting licensed custodians, compliance audit service providers, bank account resources, law firms/audit firms/fund administration, and other compliance partners.

✅ Investment review support

Conduct due diligence, contract review, and compliance analysis for investors on Token projects to ensure investment safety.