Article (publication date: Friday, November 10 2023 08:17 AM, Timezone: UTC):
UBS Group AG (SIX:UBSG) is set to permit its Hong Kong clients to trade three crypto-linked ETFs, namely Samsung (KS:005930) Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures. This development aligns with Hong Kong's broader strategy of establishing itself as a digital asset hub, a goal shared by competitors such as HSBC Holdings Plc (LON:HSBA).
Hong Kong's endeavor to become a digital asset hub was underscored on June 1st when it introduced a regulatory regime for digital assets. This dual-purpose initiative is aimed at safeguarding investors and promoting a digital asset hub. The Securities and Futures Commission (SFC) now allows retail investors to trade major tokens on licensed platforms and is contemplating permitting spot crypto ETFs.
However, the recent collapse of the unlicensed JPEX exchange due to fraud allegations on October 23rd has had a chilling effect on these efforts. As a response, Hong Kong has stepped up its oversight of the crypto industry by creating a joint SFC-police task force. Additionally, Hong Kong authorities have recommended selling complex virtual assets only to those with professional investor status, indicating a stricter approach to crypto.
Despite enduring a $1.5 trillion market rout in 2022 and significant collapses such as Sam Bankman-Fried's FTX platform, there's renewed optimism in the crypto sector. Speculations that the US may greenlight the country's first spot Bitcoin ETFs have contributed to Bitcoin's price doubling this year.
Today, UBS Group AG's Asia Pacific division announced that wealthy clients can now trade Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF on its Hong Kong platform. Financial institutions like DBS Group (OTC:DBSDY) Holdings Ltd., ZA Bank Ltd., and SEBA Bank AG are showing increased engagement with the crypto economy, reflecting the shifting attitudes towards digital assets within the financial sector.
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