Pushing the envelope in the crypto industry, HSBC has launched its first Bitcoin and Ethereum ETF product in Hong Kong. This also makes HSBC the first bank to do so in Hong Kong. The new product, which is listed on the bank’s exchange, will grant customers of the bank access to trade the two largest cryptocurrencies as ETFs in the Asian country.
HSBC is a British multinational banking and financial services holding company headquartered in London, England. It is the largest Europe-based bank by total assets, ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 trillion in assets under custody (AUC) and $4.9 trillion in assets under administration (AUA).
HSBC traces its origins to a Hong Kong trading house in British Hong Kong. The Hongkong and Shanghai Banking Corporation opened branches in Shanghai in 1865 and was first formally incorporated in 1866. The bank expanded rapidly in the following decades, opening branches in other parts of Asia, Europe, and the Americas.
Today, HSBC operates in more than 60 countries and territories. It offers a wide range of financial services, including commercial banking, retail banking, investment banking, and asset management. HSBC is a major player in the global financial markets, and its shares are listed on the London Stock Exchange and the Hong Kong Stock Exchange.
An exchange-traded fund (ETF) is a type of investment fund that tracks an index, a basket of assets, or a commodity. ETFs are traded on exchanges just like stocks, and their prices fluctuate throughout the day based on supply and demand. ETFs are a popular investment choice for a variety of investors. They offer a number of advantages over traditional mutual funds, including liquidity, low fees, and tax efficiency.
While ETFs are popular in the traditional financial system, their introduction in the crypto world has yet to gain full acceptance globally. As the recognition of cryptocurrencies continues to rise, the demand for crypto-based ETFs may follow the same route. In the US, the SEC just approved the first leveraged Bitcoin Futures ETF on June 23, 2023.
HSBC is one of the legacy organizations that have invested in the digital economy, which covers crypto, blockchain, and AI. In the third week of June 2023, the bank applied for a metaverse trademark, while in 2022, it partnered with Sandbox, the popular metaverse organization, to create a virtual experience for its customers.
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