Swiss multinational investment bank UBS Group is set to enable select high-net-worth clients in Hong Kong to trade crypto-linked exchange-traded funds (ETFs). This move is in response to its competitor, HSBC, which has already incorporated three crypto-related futures ETFs on its investment platform in the city. These ETFs, including Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures, have received approval from Hong Kong’s Securities and Futures Commission.
HSBC is already well-established in the crypto market, having announced that it will start offering Bitcoin and Ethereum ETFs in Hong Kong. UBS’s decision to join the fray reflects the growing popularity of cryptocurrencies in the financial sector and the increasing demand from high-net-worth individuals for exposure to digital assets.
Hong Kong’s crypto regulatory landscape is also evolving to meet the rising interest in cryptocurrencies. The Securities and Futures Commission (SFC) is considering granting retail access to spot ETFs that invest directly in cryptocurrency. Julia Leung, the CEO of the SFC, noted the regulator’s openness to proposals that use innovative technology to increase efficiency and customer experience. In June, the SFC officially implemented its crypto licensing regime for virtual asset trading platforms, allowing licensed exchanges such as HashKey and OSL to offer retail trading services.
The involvement of major financial institutions such as UBS and HSBC in Hong Kong’s crypto market reflects a broader trend of traditional financial players recognizing and participating in the digital asset space.