HSBC Hong Kong, a subsidiary of a major global banking organization, has introduced support for Bitcoin and Ethereum futures Exchange Traded Funds (ETFs), expanding access to digital asset derivatives in the Asian crypto hub. The move aims to provide simplicity and convenience for newcomers to the crypto space. HSBC Hong Kong customers can now trade ETFs that offer exposure to Bitcoin and Ethereum futures based on derivative contracts listed on commodity exchanges. The specific offerings are CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF. HSBC Hong Kong is the first bank in the region to grant customers access to digital asset ETFs. The inclusion of ETFs on its investment platform allows investors to access derivatives that they might otherwise seek on unregulated exchanges, fulfilling a customer need. The CSOP Bitcoin Futures ETF and CSOP Ethereum Futures ETF are managed by CSOP Asset Management and invest in futures contracts trading on the Chicago Mercantile Exchange. ETFs offer a safer path through regulatory scrutiny for companies looking to provide crypto exposure without exposing themselves to regulatory risk. Despite the strong demand for spot access to crypto, the demand for derivatives is equally high in Hong Kong. The regulatory scrutiny around centralized exchanges has led to cautiousness in launching new platforms. In the United States, futures ETFs related to digital assets have become more common, although the SEC has not yet approved a spot-based Bitcoin ETF. ProShares’ Bitcoin futures ETF was launched on the New York Stock Exchange in 2021. The simplicity and convenience offered by ETFs make them an attractive option for retail traders, compared to more complex derivatives like options.
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