UBS Opens Crypto Futures ETFs To Wealthy Clients In Hong Kong

UBS Group, a Swiss banking giant, is expanding its crypto offerings to its high-net-worth clients in Hong Kong. The bank is allowing them to trade three crypto-linked exchange-traded funds (ETFs) that track the futures prices of Bitcoin and Ether.

According to Bloomberg, UBS’s wealthy clients will have access to the Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs on its platform. These ETFs are approved by the Hong Kong Securities and Futures Commission (SFC) and aim to provide exposure to the crypto market without holding the underlying assets.

UBS’s move follows its rival HSBC, which has offered the same three ETFs to its clients in Hong Kong since last year. HSBC is the largest bank in the city and has a significant presence in the Asian market.

Hong Kong Eyes Spot Crypto ETFs for Retail Investors

While the current crypto ETFs in Hong Kong are based on futures contracts, the SFC is considering allowing retail investors to access spot ETFs directly investing in cryptocurrencies.

In a Bloomberg interview this week, Julia Leung, the CEO of the SFC, said that the regulator is open to “proposals using innovative technology that boosts efficiency and customer experience.” She added that the SFC is assessing the risks and benefits of such products, as well as the regulatory framework and investor protection measures.

The SFC has recently updated its guidance on crypto-related activities for intermediaries. In Oct, it issued a circular requiring intermediaries to conduct a knowledge test for clients who want to trade crypto ETFs. Although, the test ensures that the clients understand the nature and risks of the products. However, institutional and qualified corporate professional investors are exempt from the test.

In June, the SFC launched its crypto licensing regime for virtual asset trading platforms, which enables licensed exchanges to offer retail trading services for cryptocurrencies. So far, the SFC has granted licenses to two platforms: HashKey and OSL.

Related Reading| India Crypto Tax Policy Fails To Achieve Aims, Think Tank Says

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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