Mox Bank Pioneers Crypto ETF Trading for Hong Kong’s Virtual Banking Sector

Mox Bank, a virtual banking subsidiary of Standard Chartered, has become the first digital bank in Hong Kong to offer cryptocurrency exchange-traded fund (ETF) trading to its customers. Launched on August 7, 2024, this new service allows Mox Invest users to gain exposure to the crypto market through a regulated and familiar investment platform without the complexities of managing personal crypto wallets.

The bank’s offering includes a range of crypto ETFs permitted under Hong Kong regulations, encompassing both Hong Kong-listed spot and derivative ETFs, as well as US-listed derivative ETFs. The underlying assets for these products include Bitcoin and Ethereum for spot ETFs, and Bitcoin and Ethereum futures for derivative ETFs.

Mox is positioning itself as a cost-effective option for crypto ETF trading. The bank charges a competitive fee of 0.12% of the transaction volume with a minimum of HK$30 (US$3.85) for Hong Kong-listed ETFs, and 0.01% per share with a minimum of US$5 for US-listed ETFs. This pricing structure is reported to be among the most competitive in Hong Kong’s banking sector.

Barbaros Uygun, CEO of Mox, emphasized the bank’s commitment to innovation, stating, “As a digital bank with a vision of building a global benchmark from Hong Kong, Mox believes in staying ahead of the competition by being innovative and responsive to changing markets.”

The introduction of crypto ETFs aligns with growing customer interest in digital assets. According to a survey cited by Mox, nearly one-third of Hong Kong residents have engaged with cryptocurrencies, and a similar proportion of crypto owners are inclined to switch to banks offering crypto-related products.

Mox’s entry into the crypto investment space comes at a time when Hong Kong is positioning itself as a virtual asset hub for the Far East. The city approved spot crypto ETFs for trading on April 30, 2024, as part of this initiative. However, it’s worth noting that the three Hong Kong spot ETF issuers – Bosera HashKey, ChinaAMC, and Harvest Global – have struggled to gain significant traction since their launch three months ago.

Looking ahead, Mox has indicated plans to expand its crypto offerings. Jayant Bhatia, the bank’s chief product officer, revealed that the bank intends to allow direct purchases and trading of crypto assets in the future through partnerships with licensed exchanges. However, no specific timeline for these additional services has been announced.