In recent weeks, the crypto market sentiment has witnessed a remarkable upswing, buoyed by a surge of optimism triggered by the filing of spot Bitcoin (BTC) exchange-traded fund (ETF) applications by several institutional investors.
This development has instilled renewed confidence among market participants, driving crypto prices to new multi-month highs. Now, this trend appears to be gaining more momentum as more financial institutions join the ETF bandwagon.
Notably, on Monday, June 26, reports suggested that HSBC, the largest European bank, has allowed its customers at HSBC Hong Kong, the largest bank in the special administrative region of China, to buy and sell Bitcoin and Ethereum (ETH) ETFs on the Hong Kong exchange, according to widely-followed crypto reporter Colin Wu.
“HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it.” – Colin Wu
At the moment, there are three crypto ETFs that are listed on the Hong Kong exchange, including CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF, and Samsung Bitcoin Futures Active ETF.
Hong Kong regulators ask major banks to accept more crypto clients
HSBC’s support for crypto ETFs comes after Hong Kong regulators put pressure on international banks operating in the city to take on more crypto clients.
More specifically, earlier this month, the Hong Kong Monetary Authority (HKMA) asked HSBC, Standard Chartered, and the Bank of China to accept more crypto exchanges as clients.
Per the report, traditional banking giants in Hong Kong are reluctant to take on more crypto clients due to “resistance from senior executives” stemming from recent high-profile collapses in the industry. HKMA reportedly “encouraged the banks to not be afraid.”
The regulator’s incentive comes as Hong Kong continues to double down on its efforts to become a crypto and fintech hub. On June 1, the city’s much-anticipated licensing regime for virtual asset trading platforms (“VATPs”) launched, aimed at fostering crypto growth in the region.