Ahmed Ali HSBC, the banking giant, has introduced a new feature on its mobile apps that enables customers to engage in buying and selling bitcoin and ethereum exchange-traded funds (ETFs) listed on the Hong Kong stock exchange (HKEX). This move comes as the HKEX currently offers three crypto futures ETFs. The ability to trade these ETFs on HSBC’s mobile apps allows the bank’s customers to conveniently expand their exposure to cryptocurrencies in Hong Kong.
According to reports, HSBC has also launched a “Virtual Asset Investor Education Centre,” emphasizing the importance of customers reading and confirming educational materials and risk disclosures before investing in any virtual asset-related products through the bank’s apps and online banking platforms.
The Hong Kong stock exchange currently lists three crypto ETFs: CSOP Bitcoin Futures ETF (stock code: 3066), CSOP Ether Futures ETF (stock code: 3068), and Samsung Bitcoin Futures Active ETF (stock code: 3135). These ETFs track standardized, cash-settled bitcoin futures contracts and ether futures contracts traded on the Chicago Mercantile Exchange (CME). The Samsung bitcoin futures ETF seeks to provide economic exposure to the value of BTC by primarily investing in front-month bitcoin futures on CME.
Hong Kong has recently implemented regulatory changes aimed at positioning itself as a crypto and innovation hub. The new regulatory framework, which took effect on June 1, is designed to safeguard investor protection, market integrity, and manage risks associated with financial institutions.
It’s worth noting that the crypto ETFs available for trading through HSBC’s apps are not spot crypto ETFs, as some users have pointed out on social media. While the U.S. Securities and Exchange Commission (SEC) has approved several crypto futures ETFs, it has not yet given the green light to any crypto spot ETFs.
Although these crypto ETFs have been accessible through HSBC Broking services since their listing on the HKEX, their availability on mobile apps is a new development. HSBC Broking already facilitates ETF trading on the Hong Kong Stock Exchange and other major global markets.
In terms of regulatory approaches towards cryptocurrencies, Hong Kong is diverging from the United States. While the SEC has been actively cracking down on unregistered crypto trading platforms and securities tokens, including taking action against Coinbase for violating security laws, Hong Kong has chosen a different path. In response to developments in the U.S., Hong Kong legislator Johnny Ng has invited Coinbase and other global crypto exchanges to apply for licenses in Hong Kong, offering them the opportunity to establish official trading platforms and expand their operations.
It is interesting to note that HSBC recently filed trademark applications for various digital currency and metaverse services. However, the bank’s CEO, Noel Quinn, has stated that crypto does not feature in HSBC’s future plans. Despite this, the bank partnered with a blockchain virtual gaming platform called The Sandbox in March and was selected by the Hong Kong Monetary Authority (HKMA) to participate in the first round of e-HKD pilots for 2023, which demonstrates its involvement in emerging technologies.
What are your thoughts on HSBC’s decision to allow customers to trade bitcoin and ethereum ETFs listed on the Hong Kong stock exchange using its mobile apps? Share your opinions in the comments section below.
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Frequently Asked Questions (FAQs) about cryptocurrency trading
Can HSBC customers in Hong Kong trade bitcoin and ethereum ETFs using the bank’s mobile apps?
Yes, HSBC has introduced a feature on its mobile apps that allows customers to buy and sell bitcoin and ethereum exchange-traded funds (ETFs) listed on the Hong Kong stock exchange (HKEX).
What are the available cryptocurrency ETFs on the Hong Kong stock exchange?
Currently, the Hong Kong stock exchange lists three crypto ETFs: CSOP Bitcoin Futures ETF (stock code: 3066), CSOP Ether Futures ETF (stock code: 3068), and Samsung Bitcoin Futures Active ETF (stock code: 3135). These ETFs track bitcoin and ether futures contracts traded on the Chicago Mercantile Exchange (CME).
Is there any investor education provided by HSBC for trading virtual assets?
Yes, HSBC has launched the “Virtual Asset Investor Education Centre” to provide educational materials and risk disclosures for investors. Customers are required to read and confirm these materials before investing in any virtual asset-related products through HSBC’s mobile apps and online banking platforms.
What is the regulatory framework for cryptocurrencies in Hong Kong?
Hong Kong has revamped its regulatory framework for cryptocurrencies, aiming to become a crypto and innovation hub. The new law, which came into effect on June 1, seeks to ensure investor protection, market integrity, and manage risks for financial institutions.
Are the cryptocurrency ETFs traded through HSBC’s mobile apps spot ETFs?
No, the cryptocurrency ETFs available for trading through HSBC’s mobile apps are not spot ETFs. They are crypto futures ETFs that track standardized, cash-settled bitcoin and ether futures contracts.
How does Hong Kong’s regulatory approach towards cryptocurrencies differ from that of the United States?
While the U.S. Securities and Exchange Commission (SEC) has been taking action against unregistered crypto trading platforms, Hong Kong has adopted a different stance. Hong Kong legislator Johnny Ng has invited global crypto exchanges, including Coinbase, to apply for licenses in Hong Kong, encouraging their official trading platforms and further development plans.
Is HSBC involved in other digital currency and metaverse services?
HSBC recently filed trademark applications for a wide range of digital currency and metaverse services. The bank has also partnered with a blockchain virtual gaming platform called The Sandbox and participated in e-HKD pilots for 2023, as announced by the Hong Kong Monetary Authority (HKMA).
More about cryptocurrency trading
- HSBC enables bitcoin and ethereum ETF trading on mobile apps in Hong Kong
- Hong Kong stock exchange
- CSOP Bitcoin Futures ETF
- CSOP Ether Futures ETF
- Samsung Bitcoin Futures Active ETF
- Hong Kong regulatory framework for virtual assets
- Securities and Exchange Commission (SEC)
- Coinbase
- Hong Kong Monetary Authority (HKMA)
- HSBC’s partnership with The Sandbox
