HSBC Hong Kong Embraces Cryptocurrency ETFs

In a surprising turn of events, HSBC Hong Kong, which once declared a ‘hands-off’ approach towards cryptocurrency, has opened up its platform to allow clients to buy and sell Bitcoin and Ethereum ETFs.

A Shift Towards Cryptocurrency ETFs

According to “Wu Blockchain,” HSBC, Hong Kong’s largest bank, began allowing its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong Stock Exchange (HKEX) on June 26th. This makes HSBC the first bank in Hong Kong to open up cryptocurrency ETF trading to its customers.

（Image via CoinGape）

Available Cryptocurrency ETFs

There are currently three cryptocurrency ETFs approved for listing in Hong Kong: the “Samsung Bitcoin Futures Active ETF (3135.HK)” launched by Samsung Asset Management (Hong Kong), and the “CSOP Bitcoin Futures ETF (3066.HK)” and “CSOP Ether Futures ETF (3068.HK)” — the latter two of which HSBC opened for customer trading.

HSBC is also reported to be the trustee of the two cryptocurrency ETFs under CSOP.

（Image via Financial Times）

A Change of Tune for HSBC

Unlike its competitors such as Goldman Sachs Group, HSBC’s stance towards cryptocurrency has not been particularly friendly in the past. Besides preventing customers from transferring profits from Bitcoin investments to their bank accounts, the bank has also issued a ban on “Bitcoin concept stocks” in its branches in Canada and Taiwan. This ban prohibited clients from purchasing products that “reference cryptocurrency performance,” such as Riot Blockchain, Ark Next Generation Internet, and MicroStrategy.

HSBC CEO Noel Quinn stated in 2021 that they did not view Bitcoin as an asset class due to its volatile price trend and had no intention of launching a cryptocurrency trading platform or offering cryptocurrency services to its customers.

The change in HSBC’s attitude towards cryptocurrency may also signal that the mainstream momentum of Web 3.0 is unstoppable.

Keywords: HSBC Hong Kong, Cryptocurrency ETFs, Hong Kong Stock Exchange, Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, CSOP Ether Futures ETF, Goldman Sachs Group, Riot Blockchain, Ark Next Generation Internet, MicroStrategy, Noel Quinn