People’s feelings about the cryptocurrency market have changed a lot in the past few weeks. This rise has been fueled by a wave of excitement caused by the fact that many institutional buyers have applied for spot Bitcoin (BTC) exchange-traded funds (ETFs).
Because of this new knowledge, people on the market feel more hopeful, which has pushed the prices of cryptocurrencies to new highs not seen in a few months. This trend is growing as more financial companies start investing in ETFs.
Banks Are Getting Closer to Cryptocurrencies
On Monday, June 26, reports said that HSBC, the biggest bank in Europe, had let its customers at HSBC Hong Kong, the biggest bank in the particular administrative region of China, buy and sell Bitcoin and Ethereum (ETH) ETFs on the Hong Kong market. This is what the well-known crypto writer Colin Wu said.
“HSBC, the biggest bank in Hong Kong, is the first bank in Hong Kong to let its clients buy and sell exchange-traded funds (ETFs) posted on the Hong Kong market. Today, HSBC gave its customers the ability to do this.
— Colin Wu wrote in his tweet.
Three cryptocurrency exchange-traded funds (ETFs) are listed on the Hong Kong stock exchange. These ETFs include the CSOP Bitcoin Futures ETF, the CSOP Ethereum Futures ETF, and the Samsung Bitcoin Futures Active ETF.
Hong Kong Regulators Request That Major Institutions Take More Cryptocurrency Clients
After Hong Kong officials pressured multinational banks working in the city to take on more cryptocurrency clients, HSBC chose to back cryptocurrency exchange-traded funds (ETFs).
To be more specific, the Hong Kong Monetary Authority (HKMA) made the request earlier this month for HSBC, Standard Chartered, and the Bank of China to add more Bitcoin exchanges as users.
According to the story, “Resistance from senior executives” is making traditional banking giants in Hong Kong hesitant to take on more Bitcoin clients. This hesitation is a direct result of the business’s high-profile mistakes in the past. People say that the HKMA “told the banks not to be scared.”
The reward from the government comes as Hong Kong continues to step up its efforts to become a center for cryptocurrency and financial technology. The long-awaited licensing system for “virtual asset trading platforms” (also called “VATPs”) was finally put in place by the city on June 1 to support the growth of the bitcoin industry in the area.