UBS joins HSBC in offering crypto futures ETFs to wealthy clients in Hong Kong

Swiss multinational investment bank UBS Group is set to enable select high-net-worth clients in Hong Kong to trade crypto-linked exchange-traded funds (ETFs).

The move is aimed at keeping pace with its competitor, HSBC, which has already incorporated three crypto-related futures ETFs on its investment platform in the city. The authorized ETFs, including Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures, have received the green light from Hong Kong’s Securities and Futures Commission.

UBS following in HSBC’s footsteps

The largest bank in Hong Kong, HSBC, has long been a participant in the crypto market. It recently announced that it would start offering Bitcoin and Ethereum ETFs in Hong Kong.

The strategic move by UBS underscores the growing importance of cryptocurrencies in the financial sector and reflects the increasing demand from high-net-worth individuals for exposure to digital assets.

Crypto regulation framework in Hong Kong

Hong Kong’s crypto regulatory landscape is evolving to accommodate the rising interest in cryptocurrencies. The Securities and Futures Commission (SFC) is reportedly contemplating granting retail access to spot ETFs directly investing in cryptocurrency.

Julia Leung, the CEO of the SFC, highlighted the regulator’s openness to proposals utilizing innovative technology to enhance efficiency and customer experience. Recent updates from the SFC include broader investor engagement in crypto ETFs, with a knowledge test requirement for virtual assets for most clients, while exempting institutional investors and qualified corporate professional investors.

In June, Hong Kong officially implemented its crypto licensing regime for virtual asset trading platforms. This regulatory step paved the way for licensed exchanges like HashKey and OSL to offer retail trading services.

The inclusion of major financial institutions like UBS and HSBC in Hong Kong’s crypto market reflects a broader trend of traditional financial players acknowledging and participating in the digital asset space.

Comments

Post a Comment

Popular posts from this blog

Regulatory Body Grants X (Twitter) Virtual Currency Transmitter License

Rhode Island granted X a virtual currency transmitter license, enabling the sending and receiving of fiat and crypto. The license is a crucial endorsement for entities handling monetary transfers, showing X’s broad financial goals. The approval could be the first step to Musk’s vision of an Everything app. Rhode Island’s financial regulatory authorities have granted X (formerly Twitter) a virtual currency transmitter license, enabling the company to engage in the sending and receiving of both traditional fiat and digital currencies. This license signifies X’s extensive financial aspirations. Final Take: Details are still emerging about what X’s payment Features will look like, but its foundation seems to be expanding steadily. pic.twitter.com/7CnOz5w9Cs — Keyur Rohit (@CryptoKingKeyur) August 30, 2023 The virtual currency transmitter license is an essential requirement for entities involved in the transfer of monetary value. In simpler terms, it acts
Read more

Celsius Escapes Bankruptcy: Court Approves Restructuring Plan

The New York Bankruptcy Court has approved Celsius’ restructuring plan. Celsius proposes to reorganize the firm into a BTC mining platform and initiate a reimbursement plan for creditors. The new firm will be rebranded as ‘NewCo’ and will be managed by the consortium Fahrenheit. According to recent reports, the New York Bankruptcy Court has approved the bankrupt cryptocurrency firm Celsius’ restructuring plan. After which, customers could recover their funds and receive equity in the new company, a creditor-owned Bitcoin mining company. In a court order dated November 9, Judge Martin Glenn of the Southern District of New York Bankruptcy Court approved the Celsius creditors’ proposal to restructure Celsius, which would be rebranded to NewCo. Under the proposed plan, the new platform will focus on BTC mining and staking fee earnings. The consortium Fahrenheit LLC will manage the new platform and is expected to acquire a minority stake in NewCo for around $50 mi
Read more

Breaking: Binance Burns Binance Coin (BNB) Worth $480 Million

Image
This is an initiative by Binance to lower the overall supply of BNB tokens in circulation. An Auto-Burn mechanism is used to carry out the burn, and it chooses how much BNB to burn based on the price and the number of blocks generated on the BNB Smart Chain. The exchange has destroyed 48 million BNB tokens overall.  advertisement Why Is The Quarterly Burn Required? BNB was introduced in 2017, and a promise was made to burn 100 million BNB (or half of its supply) to remove them from circulation. Only 100 million BNB will eventually remain in circulation due to this. Each quarter, this commitment is automatically carried out and the Auto-Burn algorithm is used to determine the amount.  The BNB Auto-Burn offers a technique that can be objectively and independently audited. The method is separate from the Binance centralized exchange, and the numbers are provided every quarter. Additionally, BNB Chain is still using the Real-Time-Burn mechanism to burn a portion of
Read more