Effective June 26, HSBC, one of Hong Kong’s largest banking institutions has allowed its customers to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong exchange

Hong Kong and Shanghai Banking Corporation (HSBC) — the Hong Kong banking behemoth — has reportedly become the first local bank to introduce cryptocurrency exchange-traded fund (ETF) services.

From now on, HSBC customers can buy and sell Bitcoin?and Ethereum-based ETFs listed on the Stock Exchange of Hong Kong. Namely, the exchange?lists three crypto ETFs, including CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF.

CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF are?managed by CSOP Asset Management and track the standardized, cash-settled Bitcoin futures contracts and Ether futures contracts. Meanwhile, Samsung Bitcoin Futures Active ETF is managed by Samsung Asset Management Hong Kong.

The move is expected to broaden the access of Hong Kong residents to cryptocurrencies, being a sign of the growing demand for exposure to digital assets. Besides, this significant development is meaningful for the whole crypto industry as well. It continues the ongoing trend of institutional interest in crypto services.

Earlier this month, BlackRock, the largest investment company globally, announced it was eyeing the first crypto spot ETF in the United States. Moreover, on Friday, the U.S. Securities and Exchange Commission (SEC) approved the first leveraged Bitcoin futures ETF Volatility Shares 2x Bitcoin Strategy ETF (BITX) scheduled to launch on the Chicago Board Options (CBOE) BZX Exchange next Tuesday, June 27.?

The news sent Bitcoin, the world’s largest cryptocurrency, up to reach a $31-thousand price milestone, last seen on June 7, 2022. Overall, BTC rose by almost 14% in the last 30 days.

Although HSBC is the first bank in the region to introduce crypto services, Hong Kong has a favourable environment for the digital asset industry. For instance, while the Western world is discussing the regulation of stablecoins, Hong Kong is taking concrete measures to create a regulatory framework for the process of using cryptocurrency, which is tied to traditional financial assets. It is expected to appear already in 2024.

Moreover, starting June 1, the Hong Kong securities regulator started accepting license applications from crypto exchanges, as it issued the Guidelines for Virtual Asset Trading Platform Operators.?