UBS Group Unleashes Crypto ETFs for Wealthy Clients in Hong Kong, Bloomberg Reports

"UBS Enables Wealthy Clients to Access Crypto ETFs Through Hong Kong Platform"

UBS, the Swiss bank, has announced that its wealthy clients can now invest in three crypto exchange-traded funds (ETFs) through its Hong Kong platform. This move comes as Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), has authorized the three ETFs: Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs. These three products have a combined value of approximately $72 million. It is worth noting that this announcement comes just one day after HSBC, one of the world’s largest banks, revealed its plans to launch a digital assets custody service for institutional clients.

Hong Kong has been making significant strides in the cryptocurrency space recently. It has started allowing retail investors to purchase spot crypto ETFs and engage in primary dealing of tokenization. These developments are part of Hong Kong’s efforts to establish itself as a virtual asset hub. In June, the city implemented a new regulatory regime that accepts applications for crypto trading platform licenses. The first set of licenses was granted in August, enabling exchanges to serve retail customers. UBS and the SFC have not yet responded to CoinDesk’s request for comment on this matter.

UBS’s involvement in the crypto space extends beyond offering crypto ETFs. The bank was recently named as one of six commercial banks collaborating with the Swiss National Bank (SNB) on a pilot project for a wholesale central bank digital currency (CBDC). This highlights UBS’s continued interest and involvement in the digital asset sector. Earlier this year, UBS played a crucial role in rescuing Credit Suisse after the latter experienced a collapse. Interestingly, Bitcoin’s price surged above $28,000 shortly after this event.

In conclusion, UBS’s decision to allow its wealthy clients to invest in crypto ETFs through its Hong Kong platform demonstrates the growing acceptance and adoption of digital assets by traditional financial institutions. Hong Kong’s regulatory advancements in the crypto space further solidify its ambitions to become a prominent virtual asset hub. As the crypto industry continues to evolve, it will be interesting to see how other banks and financial institutions respond to these developments and whether they will follow in UBS’s footsteps.

Martin Reid

Martin Reid

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