Banking giant Hong Kong and Shanghai Banking Corporation (HSBC), the biggest financial institution in Hong Kong, has finally launched its Bitcoin (BTC) and Ethereum (ETH) Exchange Traded Fund product for investors on the Island. According to the report, Bitcoin and Ethereum-based ETFs will be the first crypto products the firm will be launching in Hong Kong.
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
The bank has specifically greenlighted ETF trading on the floor of the Hong Kong Stock Exchange, which has also floated three other related investment products in recent times.
The launch of the product stems from the consistent effort by the Hong Kong Securities and Futures Commission (SFC) to lessen the requirements for retail investors to gain exposure to the nascent crypto ecosystem. Before now, only investors with a trading capital of $1 million are allowed to trade in the region, and this new reform is opening up access for many.
HSBC is thrilled this direction from the SFC, and its allowance will enable traders to embark on proactive investing in a safe and regulated environment.
Stepping ahead of competition
Hong Kong appears to understand the direction of financial evolution and is doing all it can to get ahead of the competition. The goal is to return the island to its previous status, where it was tagged a hub for crypto and, as such, was able to attract new capital to the market.
The clamor for a spot Bitcoin ETF product has been growing by the day in the United States, and top financial giants in the country, led by BlackRock, have now filed applications with the Securities and Exchange Commission (SEC) to float the product. Considering what the ripple effect of the launch might be if approved, HSBC's launch may be considered the first mover advantage as it can attract global clients first.