HSBC becomes first Hong Kong bank to allow crypto ETFs

Bitcoin and Ether-oriented exchange-traded funds (ETFs) have been made accessible to all HSBC customers. As per a journalist, Colin Wu, this is a step toward popularizing the acceptance and use of digital assets. Incidentally, the ETFs have been duly registered with the Hong Kong Exchange (HKEX).

Currently, the only crypto ETFs registered with the HKEX are the CSOP Bitcoin Futures ETF and the CSOP Ethereum Futures ETF. In the case of a subsidiary of Samsung’s investment arm, the Samsung Bitcoin Futures Active ETF is also listed on the exchange. 

With the offering of connectivity to ETFs, HSBC stands out as the first bank to take such an initiative in Hong Kong. Through this, it will be possible for investors to carry out the purchase and sale of crypto ETFs. As per the information divulged, the central bank of Hong Kong was instrumental in encouraging HSBC, and soon to follow will be Standard Chartered Bank, along with the Bank of China.

It has been observed in recent times that the cryptocurrency industry around the world is beginning to get inclined towards spot Bitcoin ETFs. In a way, this is being attributed to BlackRock, which is the biggest asset manager globally, applying for the ETF with the US Securities and Exchange Commission. This seems to have set the ball rolling, with others following suit.

Hong Kong has enacted a new rule requiring all cryptocurrency exchanges operating within its borders to obtain a valid license if they wish to interact with retail traders. In accordance with the report submitted by Finance Magnates, the regulations include a provision regarding the protection of investors’ interests prior to contacting them. This can be accomplished by ensuring that investors have sufficient knowledge of cryptocurrencies and by reducing the overall risk quotient.

Along with offering the availability of crypto ETFs to its customers, HSBC has simultaneously introduced the Virtual Asset Investor Education Center. This is to provide customers with awareness regarding the risk disclaimer before deciding to take the leap in making investments in crypto-oriented products. All of this is at the disposal of inclined investors through HSBC’s mobile applications, HSBC HK Easy Invest, HSB CHK Mobile Banking application, and the bank’s online banking platform.