UBS Reportedly Allowing High Net Worth Clients to Trade Crypto Futures ETFs in Hong Kong

UBS Group Expands Crypto ETF Offerings in Hong Kong

UBS Group is now allowing certain clients to trade crypto-linked exchange-traded funds (ETFs) in Hong Kong, following in the footsteps of its rival HSBC, which has been tapping into the nascent market in the city.

Bloomberg reported today that UBS’s wealthy clients will be given access to three crypto-related futures ETFs on its platform. These ETFs, including Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs, are authorized by Hong Kong’s Securities and Futures Commission.

HSBC, the largest bank in Hong Kong, has long included the three ETFs on its investment platform.

Potential spot crypto ETFs

Hong Kong is also considering allowing retail access to spot ETFs directly investing in cryptocurrency. The SFC is evaluating such retail investment products as it welcomes “proposals using innovative technology that boosts efficiency and customer experience.”

Last month, the SFC updated its guidance on virtual asset-related activities for intermediaries, broadening the investor range for crypto ETF engagement. The regulator requires intermediaries to assess their clients with a knowledge test for virtual assets before they can proceed with a transaction. Institutional investors and qualified corporate professional investors are exempt from this test.

In June, Hong Kong officially started its crypto licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. The regulator has granted such licenses to HashKey and OSL.

Hot Take: UBS Embracing Crypto Signals Growing Acceptance

The move by UBS Group to allow certain clients to trade crypto-linked exchange-traded funds (ETFs) in Hong Kong signals a growing acceptance of cryptocurrency within traditional financial institutions. With HSBC already offering similar services in the city, UBS’s decision reflects a recognition of the increasing demand for exposure to digital assets among wealthy clients. As regulators continue to explore new avenues for retail investment in cryptocurrency, it’s evident that financial institutions are adapting their offerings to meet this evolving landscape.