UBS to let wealthy clients trade crypto futures ETFs in Hong Kong: report

UBS Group is starting to allow certain clients to trade crypto-linked exchange-traded funds (ETFs) in Hong Kong, in a move to match its rival HSBC in tapping the nascent market in the city.

Bloomberg reported today, citing a source familiar with the matter, that UBS’s wealthy clients will be given access to three crypto-related futures ETFs on its platform. The three available ETFs — Samsung Bitcoin Futures Active, CSOP Bitcoin Futures and CSOP Ether Futures ETFs — are authorized by Hong Kong’s Securities and Futures Commission.

UBS did not immediately respond to The Block’s request for comment.

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

Potential spot crypto ETFs

Meanwhile, Hong Kong is considering allowing retail access to spot ETFs directly investing in cryptocurrency. 

Julia Leung, chief executive officer of the SFC, said in a Bloomberg interview published earlier this week that the regulator 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 noted in a circular at the time that it 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.