UBS Group is set to allow select clients in Hong Kong to trade cryptocurrency-linked exchange-traded funds (ETFs), according to reports. This strategic move aims to keep pace with competitors like HSBC in tapping into the growing crypto market in the city. Sources familiar with the matter revealed that UBS will provide its affluent clientele with access to three crypto-related futures ETFs on its platform.
The three ETFs, namely Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs, have received authorization from Hong Kong’s Securities and Futures Commission. This mirrors HSBC’s longstanding inclusion of these ETFs on its investment platform, reflecting the increasing integration of crypto-related financial products in traditional banking services.
Hong Kong, a prominent financial hub, is actively exploring opportunities in the crypto space. The city is contemplating allowing retail access to spot ETFs directly investing in cryptocurrencies. Julia Leung, at the helm of the Securities and Futures Commission as its CEO, has revealed that the regulatory authority is actively exploring retail investment products that harness cutting-edge technology to elevate efficiency and enrich the overall customer experience.
The move by UBS aligns with the evolving regulatory landscape in Hong Kong. The Securities and Futures Commission updated its guidance on virtual asset-related activities for intermediaries last month, expanding the investor range for crypto ETF engagement. Notably, the regulator requires intermediaries to assess clients with a knowledge test for virtual assets, with exemptions for institutional investors and qualified corporate professional investors. The expansion of UBS’s crypto offerings comes amid Hong Kong’s initiative to establish a crypto licensing regime for virtual asset trading platforms, granting licenses to entities like HashKey and OSL since its launch in June.
