Hong Kong’s virtual bank Mox has introduced a new service that lets customers trade Bitcoin and Ethereum ETFs. This move reinforces Hong Kong’s standing as a crypto-friendly hub, offering innovative financial solutions for digital asset enthusiasts.
The South China Morning Post recently reported that Mox started its ETF services this past Monday, marking it as one of the first digital banks in the region to provide direct ETF trading. Jayant Bhatia, Mox’s Chief Product Officer, stated that this launch is merely the beginning of the bank’s foray into crypto investments. He emphasized that Mox aims to provide a secure avenue for customers to diversify their portfolios by venturing into this new asset class.
Mox’s entry into Crypto ETFs
Mox’s launch of crypto ETFs signals a significant step in the bank’s strategy to broaden its financial offerings. The bank had ventured into the ETF market earlier this year, with various products made available through Mox Invest in February. This new addition of Bitcoin and Ethereum ETFs aligns with the bank’s goal of expanding its reach in the cryptocurrency space.
Jayant Bhatia explained that offering ETFs allows customers to engage in cryptocurrency investment with reduced risks, which aligns with Mox’s mission to provide safe and innovative financial services. Bhatia also hinted at plans for Mox to enable direct cryptocurrency purchases through its platform. While no specific date has been announced for this feature, Mox plans to partner with a licensed exchange to facilitate these transactions.
Addressing investment risks
Mox openly acknowledges its concern about cryptocurrencies’ volatile nature. Bhatia assured that the bank prioritizes transparency in its risk disclosures to customers. He emphasized the importance of diversified asset classes as a strategy for managing investments effectively. “Starting with ETFs is a step in the right direction for anyone looking to enter the crypto market safely,” Bhatia stated.
Mox’s expansion into crypto services came on the heels of a market downturn after Bitcoin reached a new all-time high in 2024. This timing demonstrates Mox’s commitment to offering diverse investment options regardless of market fluctuations.
Hong Kong’s continued push as a Crypto hub
Hong Kong’s proactive regulatory measures evidence its efforts to become a leading crypto hub. In June 2023, the city implemented a licensing regime specifically for crypto exchanges. This initiative has successfully attracted numerous firms to establish operations in Hong Kong.
The Hong Kong Securities and Futures Commission (SFC) announced on June 3 that 11 cryptocurrency exchanges had applied for virtual asset trading platforms (VATPs). Furthermore, obtaining an SFC license is mandatory for all centralized crypto exchanges operating in the region. These regulatory requirements include stringent monitoring of asset custody, know-your-customer (KYC) processes, anti-money laundering (AML) and counter-financing terrorism (CFT) practices, risk management, and cybersecurity measures.
These regulatory developments highlight Hong Kong’s strategic push to strengthen its position as a crypto-friendly jurisdiction. With firms like Mox actively engaging in the crypto market, Hong Kong is poised to remain at the forefront of the global digital asset landscape.
Mox’s introduction of Bitcoin and Ethereum ETFs is a significant step forward for the bank and Hong Kong’s evolving financial sector. The city’s progressive approach to cryptocurrency regulation continues to attract innovation and investment, solidifying its status as a significant player in the crypto world.