HSBC Hong Kong, the biggest bank in the special administrative region of China, is now permitting trades of Bitcoin and Ether ETFs.
On Monday, crypto outlets The Block and CoinTelegraph, citing a tweet from Chinese blockchain journalist Colin Wu, reported that HSBC had become the first bank there to let customers trade Bitcoin and Ether ETFs listed on Hong Kong’s exchange.
SCOOP: HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it. The move will expand local users’ exposure to cryptocurrencies in Hong Kong. pic.twitter.com/vH0LieSVGw
— Wu Blockchain (@WuBlockchain) June 26, 2023
Wu added in a tweet that some of the crypto ETFs listed in Hong Kong include the CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.
The news comes after the region's banking regulator earlier this month pressured several of the biggest banks in Hong Kong, including HSBC, to accept crypto exchanges as clients. In an April letter sent by the Hong Kong Monetary Authority to the banks, the regulator said that due diligence should not create “an undue burden” to accepting crypto clients, the Financial Times reported.
Hong Kong has recently warmed to crypto publicly, in contrast with the outwardly cold stance taken by leaders in mainland China. Earlier this month, Hong Kong instituted a licensing scheme for crypto exchanges and reinstated retail crypto trading for select cryptocurrencies.
Some in the industry have speculated that Hong Kong’s openness to crypto could eventually lead to a thaw in mainland China’s cryptocurrency ban.
Meanwhile, the Securities and Exchange Commission is reviewing several applications for a spot Bitcoin ETF, including from the world’s largest asset manager, BlackRock. The SEC has so far denied all such previous applications.
Crypto industry players hailed the move on Monday. Tyler Winklevoss, CEO of crypto exchange Gemini, said in a tweet that the development was more evidence that Asia is overtaking the U.S. when it comes to crypto.
“Hong Kong has just beat the USA to the punch on a bitcoin ETF...and ether ETF,” Winklevoss wrote.
Bitcoin and Ether on Monday morning were trading down, about 1%, near $30,300 and $1,800, respectively.
