Swiss Financial UBS Group AG is allowing high-net-worth clients in Hong Kong to trade three crypto exchange traded funds (ETFs) this week on Friday, November 17th, according to a report by Bloomberg.
Hong Kong’s SFC Authorizes 3 Crypto ETFs
The three ETFs have been authorized by Hong Kong’s Securities and Futures Commission (SFC).
These ETFs are (1) Samsung Bitcoin Futures Active ETF, (2) CSOP Bitcoin Futures ETF and (3) CSOP Ether Futures ETF.
According to the publication conveyed, UBS is additionally providing clients access to educational materials to enhance their understanding of the risks linked to crypto related investments.
Hong Kong Crypto Regulations
Hong Kong introduced a new regulatory framework for crypto assets in June permitting crypto exchanges to provide trading services to individuals and institutions upon requiring appropriate licenses.
According to the SFC rules, retail investors can trade major cryptocurrencies on licensed centralized exchanges — the regulator currently allows futures-based ETFs and is said to be evaluating the possibility of approving spot crypto ETFs.
In June, it was also reported that British Megabank HSBC had begun offering the trading of crypto ETFs in Hong Kong.
Hong Kong’s crypto pivot is supposed to help restore its image as a cutting edge financial center. But the city-state experienced setbacks from the recent scandal of the JPEX cryptocurrency exchange amid fraud allegations.
Hong Kong later on heightened their security by setting up a joint SFC and police task force to help monitor for suspicious activity.
We kind of see these hotpots in Hong Kong and what is happening in the UK and the EU as well. Especially timing wise because the US is still not prepared from a legislative front to be able to adapt to this quickly — the only two things that possibly could happen very quickly are the Ethereum Spot ETFs and as well as the Bitcoin Spot ETFs.
The point being is that Bitcoin as an ETF — yes, that is going to be very positive for the markets in the US but they still have challenges — a lot of these funds, strategies and innovations especially in the fintech field are moving offshore, and that is a problem because unless they get regulatory clarity. Even though they see some push back currently from Congress, the US needs to see action and I think that is the key point that is going to be taking place here in the future weeks to come.