HSBC to Offer Crypto ETF Investment Options in Hong Kong
Hong Kong has recently gained a reputation as the next epicenter for cryptocurrency innovation and development in the international markets. The friendly stance of the government of Hong Kong concerning cryptocurrencies is reflected in the latest offering of HSBC Bank.
The latest media outlets are talking about the plans of HSBC, the biggest bank in Hong Kong, to offer cryptocurrency ETF investment options for its clients. Thus far the media reports indicate that the crypto ETF options are set to track the performance of two major cryptocurrencies namely Bitcoin and Ethereum.
The facility is going to be available for the account holders at HSBC with the condition of having to read the Virtual Asset Investor Education Center. With the crypto ETF offering HSBC has forayed into the cryptocurrency sector for the first time in its history. The bank is considered to be the most powerful and well-known banking enterprise in the region.
The latest changes have arrived at a time when countries like the USA are having some qualms about approving crypto-tracking ETFs. However, the positive stance of the regulators in Hong Kong has led to making the crypto ETFs approval process much easier and faster for applicants.
HSBC Becomes the First Traditional Bank of Hong Kong to Offer Cryptocurrency ETFs
The local media outlets have reported that with the approval and introduction of Bitcoin and Ethereum tracking ETFs, HSBC has become the first traditional bank in the country to offer them.
The new investment product of the bank can be directed at cashing in on the ease of Bitcoin and Ethereum trading and the demand for local cryptocurrencies in general. However, the regulators in Hong Kong have maintained that they aim to keep a swift check and balance legal system for the cryptocurrency entities under its jurisdiction.
Keeping regulatory compliance in mind, HSBC has mandated that consumers complete the Virtual Asset Investor Education Center. The completion of this comprehensive course is going to educate potential investors about the relevant risks and fundamentals of the cryptocurrency ETF before proceeding.
This course has been added to the dashboard of the HSBC mobile banking applications namely HK Easy Invest and CHK Mobile Banking app. At the same time, the account holders who are using the online banking services of HSBC will also be able to access it via a dedicated application.
The potential investors of the crypto ETFs are only allowed to venture into the said products once they have confirmed the completion of this course.
The CSOP Bitcoin futures ETF and the CSOP Ethereum futures ETF were listed on the Hong Kong exchange or HKEX last year in December. At the time, the listing marked the first time in Asia that two cryptocurrency ETFs were registered on a traditional stock exchange.
In recent times, Hong Kong has grown more favorable towards the cryptocurrency sector and crypto-related enterprises. It is worth noting that both these ETFs are also registered at the CME exchange.
On the other hand, consumers in Hong Kong have been able to gain indirect exposure to cryptocurrencies in the form of Bitcoin futures Active ETF introduced by Samsung. There are some speculations in the Hong Kong trading floors that HKEX can also make room for the retail trading of the cryptocurrency listing. This news has proven bullish for the international crypto market.
