Buying shares of four cryptocurrency exchange-traded funds will be available to users through official HSBC trading apps
The largest bank in Hong Kong, HSBC, has allowed customers to buy and sell shares of exchange-traded funds (ETF) for Bitcoin (BTC) and Ethereum (ETH). Which are listed on the Hong Kong Stock Exchange. And becoming the first bank in Hong Kong to officially approve this service. And this was reported by journalist Colin Wu, citing internal bank documents. According to him, such a move will expand opportunities for local users to work with cryptocurrencies.
Several cryptocurrency ETFs are currently registered in Hong Kong. Such as CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF. They are all futures-based funds. And this approach differs from that of the fund of the American investment company BlackRock, which announced the launch of a spot ETF on bitcoin.
Bitcoin Trust and Spot Bitcoin ETFs are products that track the real price of Bitcoin. Their point is to give investors access to BTC through a regulated and familiar product. While not actually owning Bitcoin.
Futures-based exchange-traded funds differ from spot funds in that they offer investors access to futures contracts rather than to an asset.
When you buy units of a spot fund, unlike futures products, there is an actual purchase of Bitcoin in the market. If big players show interest in such a product, it may have an impact on the price of the asset.
At the same time, HSBC launched the Virtual Asset Investor Education Centre. Before trading, users will need to familiarize themselves with basic concepts. And information about the risks involved. The trading service will then be available to them on the HSBC HK Easy Invest app, HSB CHK Mobile Banking and through online banking.
Our experts noted that in 2022, the Hong Kong authorities have set a course to legalize retail transactions in digital currencies. As well as encouraging local licensed crypto-businesses. Also the launch of new assets, linked to the price of cryptocurrencies, on official trading platforms. In March of this year, it was reported that Hong Kong units of mainland Chinese banks. And are considering options to provide services to cryptocurrency companies amid tight restrictions from U.S. regulators.
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