HSBC, the largest bank in Hong Kong, has reportedly made Bitcoin and Ether-based exchange-traded funds (ETFs) listed on the Hong Kong Exchange (HKEX) available to its customers. The move, according to local journalist Colin Wu, is targeted at expanding local users’ exposure to digital assets.

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. pic.twitter.com/vH0LieSVGw

— Wu Blockchain (@WuBlockchain) June 26, 2023

HSBC Facilitates Crypto ETF Trading

Currently, crypto ETFs listed on HKEX include CSOP Asset Management’s CSOP Bitcoin Futures ETF and CSOP Ethereum Futures ETF. A sub-subsidiary of Samsung’s investment arm offers the Samsung Bitcoin Futures Active ETF, on the exchange.

By providing access to the ETFs, HSBC becomes the first bank in the special Chinese administrative region to enable local investors to buy and sell crypto ETFs. The revelation comes days after reports emerged that Hong Kong’s central bank is pushing HSBC, Standard Chartered and the Bank of China, to accept crypto firms as clients.

In the past few days, the global cryptocurrency industry has seen renewed interest in spot Bitcoin ETF among stakeholders. The surge in new applications for the ETF came after BlackRock, the world’s largest asset manager, also made the same application with the US Securities and Exchange Commission.

Hong Kongs’ New Crypto Regime

Meanwhile, the launch of HSBC's new crypto ETF services follows a new crypto regime that has taken effect in Hong Kong since the beginning of this month. As part of the new crypto rules, crypto exchanges operating in the jurisdiction are now required to get licensed to offer their services to retail traders.

As reported by Finance Magnates, the new rules include a provision that requires exchanges to protect investors by assessing their knowledge of cryptocurrencies before they are onboarded. Exchanges are also required to limit retail investors’ risk exposure by confining them to cryptocurrencies with large market capitalization.

According to Wu, HSBC, in addition to providing its customers with access to crypto ETFs, launched the Virtual Asset Investor Education Centre. Customers are required to read and confirm the education materials and risk disclosure in the centre before investing in any crypto-related products on HSBC’s mobile apps: HSBC HK Easy Invest and HSB CHK Mobile Banking app as well as on the lender's online banking platform.

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