Crypto ETFs would be a great tool in the hands of cryptocurrency investors and Hong Kong’s largest bank, HSBC supports them.
In recent weeks, cryptocurrency market sentiment has witnessed a notable uptick, buoyed by a wave of optimism triggered by the submission of Bitcoin (BTC) spot applications for exchange-traded funds (ETFs) by several institutional investors.
This development has instilled renewed confidence among market participants, driving crypto prices to new multi-month highs. Now, this trend seems to be gaining momentum as more financial institutions join the crypto ETF ‘trend’.
Notably, on Monday, 26 June, reports suggested that HSBC, the largest European bank, allowed its customers at HSBC Hong Kong, the largest bank in China’s Special Administrative Region, to buy and sell Bitcoin and Ethereum (ETH) ETFs on the Hong Kong exchange, according to widely followed cryptocurrency reporter Colin Wu.
Who is HSBC Bank?
HSBC (Hongkong and Shanghai Banking Corporation) is one of the world’s largest banking and financial services organisations. Founded in 1865, HSBC has a rich history and is headquartered in London, UK.
HSBC operates a global network of branches and offices in more than 60 countries and territories, serving millions of customers. The bank offers a wide range of financial products and services to individuals, businesses and institutions. These include personal banking, wealth management, commercial banking, global banking and markets, and private banking.
In personal banking, the institution offers various services such as savings and current accounts, mortgages, personal loans, credit cards and insurance products. They also provide investment and retirement planning options to help people achieve their financial goals.
For businesses, the bank offers a full range of services, including corporate accounts, trade finance, cash management, commercial loans and international banking solutions. The bank caters to both small and medium-sized enterprises (SMEs) and large corporations, providing tailor-made solutions to meet their specific needs.
The Global Banking and Markets division provides services to corporate and institutional clients, including global markets, securities services and global liquidity and cash management. They help clients navigate the complexities of international trading, investment banking and capital markets.
Hong Kong and crypto ETFs
HSBC’s support for crypto ETFs comes after Hong Kong regulators pressured international banks operating in the city to take on more crypto clients.
More specifically, earlier this month, the Hong Kong Monetary Authority (HKMA) asked HSBC, Standard Chartered and Bank of China to accept more cryptocurrency exchanges as clients.
According to the report, the city’s traditional banking giants are reluctant to take on more crypto clients due to ‘senior management resistance’ stemming from recent high-profile slumps in the sector.
However, the rush to crypto ETFs and market sentiment have prevailed.
The regulator’s incentive comes as Hong Kong continues to redouble its efforts to become a crypto and fintech hub. On 1 June, the city’s long-awaited licensing regime for virtual asset trading platforms (‘VATP’) was launched. Aimed at boosting cryptocurrency growth in the region.
Crypto ETFs: Bitcoin and Ethereum
Once we had the gold rush, today it seems that many are betting on digital assets.
The news that has shaken up the cryptocurrency market, in fact, concerns the approval and launch of crypto ETFs by HSBC.
Customers can now trade Bitcoin and Ethereum Exchange Traded Funds (ETF) futures. Thus expanding access to digital asset derivatives in this emerging Asian cryptocurrency hub.
The crypto ETFs, which are traded as securities, were listed Monday on HSBC Hong Kong’s so-called ‘Easy Invest’ mobile app.
They offer traders exposure to Bitcoin and Ethereum futures based on derivative contracts that are traded on commodity exchanges.
The specific offerings are CSOP Bitcoin Futures, CSOP Ethereum Futures and Samsung Bitcoin Futures Active, all crypto ETFs.
United States beaten?
Yeah, that sounds weird. Doesn’t it?
In fact, the US is still struggling with long-awaited regulation by both crypto service providers and private investors.
Yes, it’s true, there had been talk of a crypto ETF promoted by Blackrock. But it’s not enough to make the US a crypto hub.
The US timelines and the lawsuits between the SEC and the crypto world, in fact, are taking far too long and this is driving the industry away from the US.
HSBC knows this and has taken advantage of it, beating the US to the punch.