June 29, 2023
By Sharan Kaur Phillora
In a significant move to foster cryptocurrency adoption, Hong Kong’s largest bank, HSBC, has begun offering its customers access to Bitcoin and Ethereum futures Exchange Traded Funds (ETFs) on the Hong Kong exchange as of Monday, June 26, 2023.
Here’s what we know:
The Hong Kong Monetary Authority (HKMA) is said to be encouraging leading banks to support the operations of licensed cryptocurrency exchanges. This move aims to promote cryptocurrency adoption within China’s Special Administrative Region (SAR).
HSBC, with nearly 1.7 million active customers as of March 2022, has rolled out these crypto services to give traders more exposure to cryptocurrencies. The bank’s decision to offer trade in crypto futures ETFs clearly indicates its pro-crypto stance.
The ETFs available for trading on HSBC’s “Easy Invest” mobile app include CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF. These ETFs expose traders to Bitcoin and Ethereum futures based on derivative contracts that trade on commodity exchanges.
Sei Labs co-founder Jeff Feng views HSBC’s move as a strategic one, addressing a “clear customer need.” Adding ETFs to its investment platform offers HSBC Hong Kong investors access to derivatives and steers customers away from potentially seeking access on an unregulated exchange.
Managed by CSOP Asset Management and Samsung Asset Management Hong Kong respectively, these ETFs invest in futures contracts that trade on the Chicago Mercantile Exchange (CME). They offer investors an “easy transparent way” to capture the performance of Bitcoin and Ethereum.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.