Hong Kong Virtual Bank Mox Introduces Crypto ETF Trading

Hong Kong virtual bank Mox launched crypto exchange-traded fund (ETF) trading for its customers on 7 August 2024. The move makes Mox, a subsidiary of Standard Chartered, the first virtual bank to offer direct trading of spot Bitcoin and Ether ETFs on its platform.

Mox’s new service is positioned as a cost-effective option for crypto ETF trading, the firm said in an announcement.

For Hong Kong-listed spot and derivatives ETFs, the bank charges 0.12% of the transaction volume with a minimum fee of $3.85 (30 Hong Kong dollars).

For US-listed derivatives ETFs, the fee is 0.01% per share, with a minimum of $5. This pricing strategy aims to attract both novice and experienced investors looking for efficient and economical ways to trade crypto ETFs.

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Mox To Offer More Crypto Products

Mox does not plan to stop at ETFs. The virtual bank aims to enhance its offerings, providing a comprehensive suite of crypto investment options.

For one, it plans to expand into direct purchases and trading of crypto assets. This future expansion will be facilitated through a partnership with a licensed exchange, the firm confirmed.

Hong Kong virtual bank Mox Bank launches crypto ETF trading.

The Standard Chartered subsidiary will be the first bank of its kind to offer spot Bitcoin and Ether ETF trading to customers.

Mox is also considering the potential expansion into other crypto assets. pic.twitter.com/7Rq4mdUK0o

— SUB (@SUBLIMINAL1994) August 7, 2024

Since its inception in September 2020, Mox has steadily grown its customer base.

28% of Mox’s clients already invested in cryptocurrencies. Among these, 18% are active crypto traders, indicating a significant interest in digital assets among Mox’s clientele.

Mox CEO Barbaros Uygun said the bank aims to set a global benchmark from Hong Kong by being responsive to market changes. “Adding Crypto ETFs to the Mox Invest platform empowers our customers to gain access to emerging asset classes with confidence,” Uygun said.

Jayant Bhatia, Mox’s chief product officer, reinforced this sentiment. He described the crypto ETF launch as the beginning of Mox’s foray into the crypto investment space. While he did not provide specifics on the timeline for launching crypto trading services, his comments suggest more developments are on the horizon.

Despite the enthusiasm surrounding crypto ETFs, the three issuers of Hong Kong’s spot ETFs—Bosera HashKey, ChinaAMC, and Harvest Global—have faced challenges in gaining market traction. Data from CoinGlass indicates that there have been no inflows for these ETFs in August, with total assets under management totaling $236.3 million.

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Hong Kong Seeks to Become a Crypto Hub

Hong Kong has been seeking to establish itself as a global crypto hub. Over the past two years, the city’s government has introduced several new crypto policy initiatives, including a mandatory licensing regime for cryptocurrency exchanges.

However, the city-state has witnessed a series of crypto exchange closures lately. In total, 13 companies have withdrawn or returned their license applications.

On 28 March 2024, HKVAEX, suspected to be affiliated with Binance, withdrew its license application. Subsequently, IBTCEX, QuanXLab, and Huobi HK followed suit, followed by Gate. HK, OKX HK, and Bybit were next in line to withdraw applications.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.