Hong Kong’s virtual bank, Mox, a subsidiary of Standard Chartered, has launched bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) on its investment platform. Additionally, Mox plans to introduce direct cryptocurrency investments through a partnership with licensed exchanges.
Mox Bank announced on Wednesday that it has begun offering BTC and ETH ETFs to its clients. This move comes shortly after the launch of its investment platform in Hong Kong. The bank’s entry into the crypto space reflects growing interest in digital assets, despite relatively low demand for such products in the region.
Barbaros Uygun, CEO of Mox, highlighted the bank’s commitment to providing customers with access to emerging asset classes. “Adding Crypto ETFs to the Mox Invest platform empowers our customers to gain access to emerging asset classes with confidence,” Uygun said. “It allows them to explore new investment opportunities within the evolving crypto ecosystem in a regulated and trusted environment through a safe and simple way via the Mox app.”
In addition to ETFs, Mox plans to offer direct crypto investments. This initiative will be facilitated through a partnership with one of the two licensed exchanges in Hong Kong—HashKey or OSL. This expansion aligns with the bank’s strategy to provide a comprehensive suite of crypto investment options.
Mox’s competitive edge lies in its fee structure. The bank charges a lower transaction fee of 0.12% with a minimum of HK$30 ($3.85) for Hong Kong-listed ETFs and 0.01% with a minimum of $5 for U.S.-listed ETFs. This pricing is currently the most competitive among banks in the area, according to Henry Lau, Mox’s head of investment.
The introduction of U.S.-listed spot bitcoin and ether ETFs earlier this year has seen significant activity. Bitcoin ETFs have attracted over $17 billion in inflows since January, while spot ether ETFs, launched in July, have experienced net outflows of $364 million due to investor withdrawals from Grayscale’s Ethereum Trust, as reported by Farside Investors. However, BlackRock’s iShares Ethereum Trust has seen inflows approaching $1 billion.
In contrast, Hong Kong-listed crypto ETFs have struggled with demand. The three issuers Bosera HashKey, ChinaAMC, and Harvest Global have not recorded any inflows this month, according to Coinglass data.
Mox’s entry into the crypto ETF market and its plans for direct crypto investments mark a significant step in expanding the availability of digital asset products in Hong Kong, despite the current challenges in market demand.
