Crypto adoption across Hong Kong is among the hot topics in the broader crypto space.Financial regulators have made efforts to create crypto regulations to push the banking giants to provide crypto firms with required financial assistance.Recently, HSBC reported to start trading the Hong Kong exchange listed Bitcoin and Ethereum ETFs.The bank has also added a Virtual Asset Investor Education Centre.
HSBC’s First to Allow ETF Trading
Prominent crypto news reporter, Wu Blockchain, reported via Twitter on June 26 that HSBC has allowed the buying and selling of Bitcoin (BTC) and Ethereum (ETH) exchange traded funds listed in Hong Kong exchange.
With the move, the largest bank in Hong Kong has become the first bank to move forward with such services.
SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it.The move will expand local users’ exposure to cryptocurrencies in Hong Kong.— Wu Blockchain (@WuBlockchain)
[pic.twitter.com/vH0LieSVGw] [June 26, 2023]
Users in Hong Kong are likely to get increased exposure to cryptocurrencies, especially leading crypto assets like BTC and ETH, with the ETFs allowed to trade over the prominent financial institution.
According to Wu Blockchain, the digital asset ETFs currently listed on Hong Kong exchange are CSOP Bitcoin Future ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.
Exchange traded funds (ETFs) are the financial products which provide exposure to the underlying assets without requiring physical ownership of the asset.In the case of Bitcoin ETF, the investors buying the fund make an investment in Bitcoin (BTC) without buying the cryptocurrency.
Primarily, crypto ETFs are categorized in two major types: spot and futures ETFs.
Hong Kong has been involved in promoting crypto activities in an effort to make the region a crypto hub.It took several steps to set
crypto regulations in place to support innovation and safeguard.
In addition, the Hong Kong Monetary Authority (HKMA) has also
asked the biggest banks in the region to support crypto entities, adding them as clients and providing financial assistance.
HSBC also launched, Wu Blockchain reported, a platform for investors to provide with “educational materials and risk disclosures” through its Virtual Asset Investor Education Centre.
The users can go over the platform prior to crypto related products investments using the HSBC HK Easy Invest app, mobile banking app and online banking, etc.
Spot Bitcoin ETF Filings on Rise in US
In the United States, the crypto exchange traded funds are among the issues of tussle between the crypto community and the financial regulator Securities and Exchange Commission (SEC).Though the regulator has allowed trading of futures Bitcoin ETFs, it is yet to approve spot Bitcoin ETFs.
The SEC has a history of
rejecting spot BTC ETFs, citing the risks involved in the financial product.
However, the filing of such spot ETFs have seen a rise in the last several days with major traditional finance players stepping in the space.
BlackRock, WisdomTree, Invesco, Valkyrie Funds, etc., have filed for spot Bitcoin ETF with the SEC.
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HSBC Allows Listed Bitcoin and Ethereum ETFs Trade in Hong Kong- June 26, 2023 7:56 am EDT
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