Hong Kong's largest bank opens an ETF based on BTC and ETH
Another significant Asian financial institution sees opportunities in synergy with cryptocurrencies.
The adoption of digital currencies in Hong Kong is steadily progressing. The first milestone was that from the beginning of June 2023, cryptocurrency companies can legally operate in this Asian financial center. Now we are getting optimistic news regarding the emergence of ETFs based on cryptocurrencies such as BTC and ETH. The Hong Kong and Shanghai Banking Corporation (HSBC), by far the largest banking institution operating in this country, decided to launch a program that allows its clients to trade Bitcoin and Ethereum based on complex financial instruments, such as ETFs.
HSBC has decided to open cryptocurrency ETFs in Hong Kong
The international public from the digital currency sector has experienced definitely very positive information, which is that from the beginning of this month, cryptocurrency platforms can come to Hong Kong and continue their operational activities in this city-state. Before June comes to an end, we receive more exceptionally optimistic news from this Asian country, which basically concerns the full legalization of this asset class.
This is because on June 26, Chinese journalist specializing in digital currency topics, Colin Wu, informed the public via his Twitter that HSBC, the largest bank operating in this special administrative region of China, is opening an exchange-traded ETF based on BTC and ETH.
There are currently three investment options available on the local stock exchange. These include positions such as: Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, as well as CSOP Ethereum Futures ETF.
HSBC strongly supports the adoption of cryptocurrencies
New investment forms that allow a number of the bank's clients to be exposed to digital currencies stimulate the growth of HSBC's activities. Well, recently this huge bank also launched a Virtual Asset Investor Education Center. It is worth being aware that this is a program primarily aimed at ensuring universal protection of investors against the numerous dangers associated with moving in the cryptocurrency sector. All users of the new services offered by HSBC must first read the educational materials and confirm that they understand all the risks associated with this innovative asset class.
HSBC's extensive learning center program is included in the bank's digital currency products. These are, for example, applications such as HSBC HK Easy Invest or the HSBC CHK mobile banking application.
Finally, it is worth adding in this thread that just a few weeks ago, the monetary authorities of this administrative area also turned to banking institutions operating in Hong Kong with guidelines. The above-mentioned guidelines contained information clearly encouraging banks to willingly take over customers from the digital currency sector. The local central bank made few attempts to verify individual banks, because these institutions were not enthusiastic about opening up to entities from the cryptocurrency industry. As part of this process, talks were held with HSBC and Standard Chartered, among others. According to today's publication, this had an immediate effect in the case of the first bank.