China crypto narrative is alive as HSBC supports trade in Bitcoin and Ethereum Futures ETF in Hong Kong
- HSBC Bank allows its customers to buy and sell Bitcoin and Ethereum futures ETFs listed on the Hong Kong exchange.
- The bank’s move is pro-crypto, offering Hong Kong-based customers exposure to cryptocurrencies.
- The Hong Kong Monetary Authority is pressuring major financial and banking institutions to try and meet the needs of licensed crypto exchanges.
HSBC is the largest bank in China’s Special Administrative Region (SAR) of Hong Kong. As of Monday, June 26, the bank powers trade in Bitcoin and Ethereum ETFs on the Hong Kong exchange.
Major financial regulator Hong Kong Monetary Authority (HKMA) is reportedly asking leading banks to accommodate the business needs of crypto exchanges to promote and drive crypto adoption in China’s SAR.
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China crypto narrative gains relevance with this move by major bank
Hong Kong and Shanghai Banking Corporation (HSBC) is the largest bank in China’s SAR. According to a report by Chinese journalist Colin Wu, Hong Kong’s largest bank has reportedly rolled out crypto services, trading in Bitcoin and Ethereum futures ETFs for customers.
SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it. The move will expand local users’ exposure to cryptocurrencies in Hong Kong. pic.twitter.com/vH0LieSVGw
— Wu Blockchain (@WuBlockchain) June 26, 2023
The bank is enabling customers to adopt crypto through trade in crypto futures ETFs listed on the Hong Kong exchange. The Hong Kong exchange lists three cryptocurrency ETFs, CSOP Bitcoin Futures and Ethereum Futures ETFs, and Samsung Bitcoin Futures Active ETF.
HSBC has nearly 1.7 million active customers as of March 2022, according to an online report. The bank’s move is therefore interpreted as pro-crypto as it offers more traders exposure to cryptocurrencies.
While US financial regulator Securities and Exchange Commission (SEC) cracks down on crypto, Hong Kong’s monetary authority is working on facilitating the operations of licensed cryptocurrency exchanges within China’s SAR. The HKMA has reportedly asked banking and financial institutions to meet the needs of licensed crypto exchanges and offer them requisite services in an attempt to drive crypto adoption in Hong Kong.
HSBC didn't immediately respond FXStreet's request for comment.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
