Mox, a Hong Kong-based virtual bank subsidiary of Standard Chartered, has recently introduced crypto exchange-traded fund (ETF) trading services for its customers, marking a significant development in the region’s financial technology offerings. On August 7, Mox announced this new service, positioning itself as the first bank in the area to offer direct trading of spot Bitcoin and Ether ETFs on its platform.
Looking ahead, Mox plans to broaden its crypto services, including facilitating direct purchases and trading of crypto assets through partnerships with licensed exchanges. This expansion is aimed at catering to the growing demand for accessible and diverse crypto investment options in the region.
Competitive Pricing Strategy
Mox is offering competitive pricing for its crypto ETF trading services:
- For Hong Kong-listed spot and derivatives ETFs, the fee is 0.12% of the transaction volume, with a minimum charge of 30 Hong Kong dollars ($3.85).
- For US-listed derivatives ETFs, the fee is 0.01% per share, with a minimum charge of $5.
These rates are designed to make crypto ETF trading more cost-effective for investors, particularly those looking to diversify their portfolios with digital assets.
The launch of spot crypto ETFs in Hong Kong on April 30 was part of the country’s strategic initiative to establish itself as a leading crypto hub in the Far East. Despite this push, the three primary issuers of these ETFs in Hong Kong—Bosera HashKey, ChinaAMC, and Harvest Global—have faced challenges in gaining significant traction. As of August, these ETFs have not seen any new flows, and the combined assets under management amount to only $236.3 million.
Since its inception in September 2020, Mox has reported that 28% of its customers have invested in cryptocurrencies, with 18% actively trading. This substantial client engagement reflects the growing interest and acceptance of cryptocurrencies as a legitimate asset class in the region.
Leadership Perspectives
Barbaros Uygun, CEO of Mox, articulated the bank’s ambition to set a global benchmark from Hong Kong by staying ahead in a competitive market through innovation and responsiveness to market changes. “Adding Crypto ETFs to the Mox Invest platform empowers our customers to gain access to emerging asset classes with confidence,” Uygun stated.
Meanwhile, Jayant Bhatia, Chief Product Officer at Mox, expressed that the launch of crypto ETFs is just the beginning of what Mox aims to offer in the crypto investing arena, though specific details on the future expansions of crypto trading services were not disclosed.
While the immediate response from the industry is yet to be fully realized, the introduction of crypto ETFs by Mox is anticipated to stimulate further interest and investment in cryptocurrency within the region. This initiative not only enhances the diversity of financial products available but also aligns with Hong Kong’s broader goals to become a central hub for cryptocurrency trading and innovation.
Mox Bank’s introduction of crypto ETF trading services represents a pivotal development in Hong Kong’s financial landscape, reflecting the region’s proactive approach towards embracing digital finance innovations. As Mox continues to expand its offerings, it sets a precedent for other institutions in the region to follow, potentially leading to greater integration of cryptocurrencies into mainstream financial services.
Featured image credit: DALL-E by ChatGPT
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