UBS Joins the Crypto ETF Arena
Swiss banking giant UBS Group AG is stepping into the world of cryptocurrency in Hong Kong. The financial services company is set to allow its affluent clients in the region to invest in three crypto-based exchange-traded funds (ETFs). This move places UBS in direct competition with HSBC Holdings, another major player in the banking sector.
Available ETFs for Hong Kong Clients
According to Bloomberg, which cited anonymous sources, UBS Group’s Hong Kong clients will have access to three specific ETFs: Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs. These ETFs have received authorization from the Securities and Futures Commission (SFC) of Hong Kong, marking a significant step in the region’s financial landscape starting from November 10th.
HSBC’s Pioneering Move in Hong Kong
Previously, HSBC, the largest financial institution in Hong Kong, had made a similar move. It became the first bank in the special administrative region of China to offer its customers the opportunity to trade in these three crypto ETFs. This decision was a response to the growing interest and demand among its clientele.
Hong Kong’s Crypto Ambitions
Hong Kong is actively working towards establishing itself as a major hub for cryptocurrency. The region currently permits futures-based cryptocurrency ETFs. There have been reports suggesting that the SFC is considering allowing retail investors to engage in spot crypto ETFs, further expanding the crypto investment landscape.
The U.S. Awaits Spot Bitcoin ETF Approval
In the United States, the crypto community is eagerly awaiting the approval of a spot Bitcoin ETF. Steven McClurg, co-founder of Valkyrie, expects that the U.S. Securities and Exchange Commission (SEC) might approve such applications in November 2023.
Valkyrie’s Renewed Effort in the U.S.
Valkyrie, which had its initial spot Bitcoin ETF filing rejected by the SEC, has recently submitted an amended application. The company is hopeful of a positive outcome this time around.
Anticipation for SEC’s Decision
Currently, there are 12 pending spot-based Bitcoin ETF applications in the U.S. Bloomberg ETF analysts Eric Balchunas and James Seyffart have noted that there is a potential window for the SEC to approve all these applications between November 9 and November 17. Seyffart also believes there is a 90% chance that the SEC could greenlight these applications by January 10, 2024.