News Report Technology
November 10, 2023

HSBC Rival UBS Joins Crypto Race, Introduces ETFs for Wealthy Clients in Hong Kong

HSBC Rival UBS Joins Crypto Race, Introduces ETFs for Wealthy Clients in Hong Kong

UBS Group AG has joined its rival HSBC Holdings Plc by extending an invitation to select clients to trade specific crypto-linked exchange-traded funds (ETFs), in a move to tap into the evolving crypto market in Hong Kong.

This development aligns with the country’s recent push to establish itself as a digital asset hub, with the Securities and Futures Commission (SFC) authorizing three crypto ETFs for accessibility on UBS’s Hong Kong platform.

As of now, affluent clients will gain access to three SFC-authorized crypto ETFs: the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs.

According to a source familiar with the matter, these offerings come with an additional educational component, allowing clients to familiarize themselves with potential risks associated with cryptocurrency investments. However, UBS has chosen to remain tight-lipped about the development.

This move is concurrent with Hong Kong’s implementation of a digital-asset regulatory framework on June 1 that aims to safeguard investors while fostering a conducive environment for the growth of the crypto sector. Currently, the SFC permits retail investors to trade major tokens on licensed exchanges, with an ongoing assessment regarding the inclusion of spot crypto ETFs in the regulatory purview.

Hong Kong Monitoring Crypto Industry’s Suspicious Activities

Recent setbacks in Hong Kong, such as the alleged fraud and subsequent blowup of the unlicensed JPEX exchange, have prompted heightened scrutiny. In response, Hong Kong has established a joint SFC-police task force to monitor suspicious activities within the crypto industry.

Despite the city’s efforts to position itself as a forward-thinking financial center, the crypto sector is still recovering from the market turmoil in 2022, marked by notable collapses like the FTX platform’s bankruptcy.

However, there are signs of cautious engagement by global financial institutions. DBS Group Holdings Ltd. has expressed intentions to seek a license for offering crypto services to Hong Kong customers. ZA Bank, Hong Kong’s largest virtual bank, plans to introduce token-to-fiat currency conversions through licensed platforms.

SEBA Bank has already secured a license for its unit to provide crypto services in Hong Kong, enabling the bank to provide regulated services related to digital assets, including virtual assets and securities. This development allows the Swiss-based SEBA Group to establish its very first regulated presence in APAC, strengthening the bank’s vision for global expansion.

The introduction of the CSOP Bitcoin Futures and CSOP Ether Futures funds in December touted as Asia’s first listed Bitcoin and Ether futures ETFs, has amassed a combined asset value of around $70 million, indicating a tempered interest in crypto compared to the exuberance of the pandemic-era market boom.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

More articles
Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

Hot Stories

Top 10 Crypto Games to Invest in 2024

by Gregory Pudovsky
February 27, 2024
Join Our Newsletter.
Latest News

NFTs & Mining: A Digital Synergy

The rise in usage of the non-fungible tokens has changed the way we see and engage with ...

Know More

AI in Crypto

Explore the ever-evolving realm of artificial intelligence within the cryptocurrency sphere. Discover the transformative impact of AI ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Binance Labs Invests in Babylon Protocol to Support the Advancement of Bitcoin Staking
Business News Report
Binance Labs Invests in Babylon Protocol to Support the Advancement of Bitcoin Staking
February 27, 2024
Photoroom Raises $43M Funding to Expand Generative AI Photo-Editing Model
Business News Report
Photoroom Raises $43M Funding to Expand Generative AI Photo-Editing Model
February 27, 2024
Safe Partners with Base to Promote Smart Accounts as Ethereum’s Default Ownership Standard
Markets News Report
Safe Partners with Base to Promote Smart Accounts as Ethereum’s Default Ownership Standard
February 27, 2024
Aerodrome Finance’s AERO Witnesses 127% Surge after CB Ventures’ Token Acquisition
Business News Report
Aerodrome Finance’s AERO Witnesses 127% Surge after CB Ventures’ Token Acquisition
February 27, 2024
What You
Need to Know

Subscribe To Our Newsletter.
Daily search marketing tidbits for savvy pros.