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UBS Group launches crypto ETF trading for wealthy Hong Kong clients

EditorVenkatesh Jartarkar
Published 11/12/2023, 01:54 AM

In a significant move embracing digital assets within the traditional financial sector, UBS Group has rolled out trading of crypto-related exchange-traded funds (ETFs) for high-net-worth individuals in Hong Kong. The introduction of these services follows a broader trend in the region's growing acceptance and integration of cryptocurrency into mainstream finance.

The ETFs available through UBS include the Samsung (KS:005930) Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs. These funds, which hold a combined value of approximately $72 million, offer exposure to Bitcoin and Ethereum futures rather than the cryptocurrencies themselves. This strategic approach parallels that of HSBC, which had previously initiated offering the same ETFs to its clients in Hong Kong.

Hong Kong's financial regulators have shown a progressive stance towards cryptocurrencies. The Securities and Futures Commission (SFC) CEO Julia Leung has highlighted an interest in innovative technology to enhance efficiency and customer experience in the financial sector. In line with this, the SFC is considering allowing retail investors to access spot ETFs that directly invest in cryptocurrencies, albeit with certain safeguards such as a virtual asset knowledge test. Institutional investors may be exempt from this requirement.

This regulatory openness was further evidenced earlier in the year when Hong Kong implemented a licensing regime for virtual asset trading platforms. This initiative paved the way for platforms like HashKey and OSL to offer retail trading services. SEBA Bank AG's Hong Kong affiliate also received an SFC license, allowing it to trade all securities.

UBS's recent move into crypto ETFs signifies a growing recognition of cryptocurrency's potential among high-net-worth clients who are seeking new avenues for investment. As major financial institutions like UBS and HSBC expand their digital asset offerings, it reflects an increasing melding of traditional finance with the emerging world of cryptocurrencies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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