UBS
What Happened: The bank's clients in Hong Kong - those with more than $2 million in investable assets - will be able to invest in cryptocurrency ETFs, Yahoo Finance reports.
The move is in alignment with China's steps toward adopting web3.
Why It Matters: HSBC
DBS Group plans to apply for a license to offer crypto to Hong Kong customers.
Separately, Bloomberg reported that three crypto ETFs authorized by the U.S. Securities and Exchange Commission will open doors to clients starting Nov. 10.
The clients will also have access to educational materials to understand risks better.
The ETFs are Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs.
Launched in December 2022, CSOP Bitcoin Futures and CSOP Ether Futures funds were billed as Asia's first listed Bitcoin and Ether futures ETFs. All three ETFs report a relatively modest combined asset base of around $70 million.
HongKong's Digital Asset Regulation System
In June 2023, Hong Kong launched a digital-asset regulatory regime for protecting investors and developing the crypto hub. Hong Kong's Securities and Futures Commission (SFC) allows investors to trade major tokens on licensed exchanges. Currently, it allows futures-based ETFs and is also looking to allow retail access to spot ETFs directly investing in cryptocurrency.
The JPEX exchange is currently involved in a $166 million scandal amidst allegations over its operational and promotional strategies. The Hong Kong regulatory system is more alert after the scandal and is looking to address regulatory challenges.
UBS recently was picked as one of the six commercial banks to work with the Swiss National Bank (SNB) on a wholesale central bank digital currency (CBDC) pilot.
