• The three Bitcoin and Ethereum futures offered by CSOP and Samsung will trade on the hong Kong Stock Exchange.
• The development comes as Hong Kong regulators urged banking institution to serve crypto clients.

HSBC, the largest bank in Hong Kong, announced that it would allow its customers to trade Bitcoin and Ethereum futures Exchange Traded Funds (ETFs). The development comes less than a month after Hong Kong introduced new crypto rules on June 1, in a push to establish itself as the crypto hub of Asia.

These ETFs will trade as securities on the floor of the Hong Kong Stock Exchange. This includes the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.

CSOP Asset Management states that both ETFs invest in futures contracts traded on the Chicago Mercantile Exchange (CME), providing investors with a straightforward and transparent method to track the performance of Bitcoin and Ethereum.

The Samsung Bitcoin Futures Active ETF, launched in January this year, is also managed by Samsung Asset Management Hong Kong and invests in CME contracts as well. Popular crypto journalist Colin Wu was the first to report this news.

Apart from being the largest bank in Hong Kong, HSBC is also the first lender in the region to give its customers exposure to crypto ETFs. This will provide HSBC with a clear opportunity to get ahead in competition with other players in the market.

Hong Kong is already seeing strong demand from retail players for spot access to cryptocurrencies. However, the demand for derivatives is equally higher if not low. These ETFs will allow companies to provide their customers with some exposure to crypto without any major regulatory risks.

Hong Kong Regulators Pressurising Banks

Amid the changing regulatory landscape in the West, Hong Kong regulators have been on their toes to seize every opportunity that comes along their way. Thus, they are making every possible move to attract top crypto firms in order to set up a base in the region.

As per a report earlier this month, Hong Kong regulators have been pressuring banks to take on crypto clients. This included top banks in the region such as HSBC and Standard Chartered. The Hong Kong Monetary Authority (HKMA) has been in discussion with the lenders over why they have not been keen on accepting crypto clients.

A source said that “HKMA encouraged the banks to not be afraid. There is resistance from a conventional banking mindset . . . we are seeing some resistance from senior executives at traditional banks.”

Crypto journalist Colin Wu has also reported that “HSBC launched the Virtual Asset Investor Education Centre, investors need to read and confirm the educational materials and risk disclosures in the Virtual Asset Investor Education Center before investing in any Virtual Assets-related products through HSBC HK Easy Invest app, HSB CHK Mobile Banking app and online banking”.