UBS Group has introduced a provision allowing select clients to conduct transactions with crypto-tethered ETFs in Hong Kong. This strategic move is in alignment with its counterpart, HSBC, as both institutions explore opportunities in the city’s emerging market.
According to Bloomberg’s insider source, UBS’s affluent clients will gain entry to three cryptocurrency-focused futures ETFs on its platform. These ETFs—Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures—have received approval from Hong Kong’s Securities and Futures Commission.
UBS Group Explores Crypto ETFs for Affluent Clients in Hong Kong Amid Regulatory Developments
In parallel, HSBC, the premier banking institution in Hong Kong, has long featured the trio of ETFs on its investment platform.
Prospective Crypto ETFs in the Spot Market Concurrently, Hong Kong is contemplating permitting public access to spot ETFs directly invested in the realm of cryptocurrency.
Julia Leung, the Chief Executive Officer of the SFC, revealed in a recent Bloomberg interview that the regulatory body is actively assessing retail investment products of this nature. Leung expressed a willingness to entertain proposals that leverage innovative technology, enhancing both efficiency and customer experience.
Recent Developments in Hong Kong’s Crypto Regulations: SFC Guidelines and Regulatory Framework Launch
Previously, the Securities and Futures Commission (SFC) updated its guidelines on activities related to virtual assets for intermediaries. This expansion aimed to broaden the range of investors involved in crypto ETFs.
The circular emphasized the regulator’s mandate for intermediaries to assess their clients’ knowledge of virtual assets before permitting transactions. Notably, institutional investors and qualified corporate professional investors are exempt from this evaluative test.
Moreover, in June, Hong Kong launched its cryptocurrency regulatory framework, enabling licensed trading platforms to offer retail trading services.. Notable licenses have been granted to HashKey and OSL.