HSBC Hong Kong Introduces Crypto Futures ETFs

Bitcoin and Ethereum ETFs are now accessible to Hong Kong customers via the Hong Kong Exchange (HKEX).

Hongkong and Shanghai Banking Corporation (HSBC) has reportedly added three new exchange-traded products to its listing, including CSOP Bitcoin Futures ETF, Samsung Bitcoin Futures Active ETF, and Ether Futures ETF.

These offerings are officially available on the Hong Kong Exchange (HKEX).

Hong Kong is Leading the Way

The news initially surfaced on Wu Blockchain’s Twitter, backed by Colin Wu, a reporter covering Asia-focused crypto news. He highlighted that HSBC was the first and the largest bank in Hong Kong to officialize crypto ETFs, leveraging local customers’ access to cryptocurrencies.

Hong Kong customers can now buy, sell, and trade Bitcoin and Ethereum ETFs listed on the HKEX platform.

Managed by CSOP Asset Management, the CSOP Bitcoin Futures ETF and the CSOP Ether Futures ETF track standardized Bitcoin futures contracts and Ether futures contracts listed on the Chicago Mercantile Exchange (CME). Both ETFs were listed on Hong Kong’s stock exchange in December.

Another player, Samsung Asset Management Hong Kong, entered the fray this January with its own offering, the Samsung Bitcoin Futures Active ETF. Leveraging its expertise in the asset management space, Samsung aims to carve a niche for itself in the burgeoning cryptocurrency market.

Hong Kong’s crypto landscape is flourishing, especially after its securities regulators rolled out rules for retail trading of cryptocurrency on June 1st. Crypto trading exchanges can apply for crypto licenses, which opens up opportunities to operate legally in the country.

Interestingly, some media sources previously reported that Hong Kong’s banking regulator, Hong Kong Monetary Authority (HKMA), urged major banks to accept licensed crypto exchanges as clients. Those banks were reportedly HSBC, Standard Chartered, and Bank of China.

In addition to the new services, HSBC is reportedly set to launch the Virtual Asset Investor Education Center. This move is part of the bank’s effort to protect investors from potential risks associated with cryptocurrencies.

As part of this initiative, investors will be required to review and acknowledge educational materials and risk disclosures before initiating any investments.

According to reports, the education center will be accessible through HSBC’s virtual asset-related products, including the HSBC HK Easy Invest app, HSB CHK Mobile Banking app, and online banking platforms.

Compared to other countries like Singapore, Hong Kong has a lower rate of capital gain tax, many Bitcoin ATMs, and many people in the sector – these are positive factors for widespread crypto adoption in the near future.

While Hong Kong steps in to lead the crypto way with regulations being shaped, the United States is still reluctant to bring transparency to the industry.

The U.S. Securities and Exchanges Commission (SEC), one of the two regulatory bodies expected to well manage the sector, is busy with its legal battles with major crypto exchanges.

Will Bitcoin Break the $35,000 Mark?

The crypto market had an exciting week as multiple Bitcoin ETF applications flooded the news headlines.

Within the past seven days, Bitcoin experienced a remarkable surge, soaring by an impressive 13.56%.

The largest cryptocurrency surpassed the $31,200 milestone, albeit briefly, before retracing its steps around the $30,000 level. Among the notable performers of the week were Bitcoin Cash and Pepe coin, with their prices skyrocketing by 103.74% and 62.37%, respectively.

It’s no doubt that the recent wave of ETF filings has injected a fresh sense of optimism and market confidence. Crypto members eagerly await Bitcoin’s potential breakthrough beyond the long-standing $35,000 barrier.

If the SEC approves those applications, this would undoubtedly pave the way for increased institutional participation and potentially attract a significant influx of capital into the crypto market.

Such a development could provide the necessary catalyst for Bitcoin to surpass the $35,000 mark.

On the other hand, the possibility of the SEC’s rejection is not minimal. While the hope for a Bitcoin surge remains strong, the outcome of the SEC’s review process hangs in the balance, leaving room for both optimism and caution among market participants.