In a bold move, Mox, a virtual bank operating under the license of Standard Chartered, has commenced the process of offering spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) to its customers. This initiative is part of the bank's strategy to broaden its investment platform in Hong Kong.
Mox Trades ETFs: The Offerings and Benefits
With this announcement and launch, Mox has become one of the first of its kind to allow on its platform direct trading of spot Bitcoin and Ether ETFs. Plans are also underway for the bank to expand its crypto offerings. In the future, these plans could include allowing direct purchases and trading of crypto albeit doing so through a partnership with a licensed exchange.
As Mox trades ETFs, which includes both Bitcoin and Ether, the bank is carving a niche for itself by offering lower fees compared to its competitors. Clients of the bank can now trade Hong Kong-listed ETFs for a fee of 0.12% of the transaction volume with a minimum charge of HK$30 ($3.85), and US-listed ETFs for 0.01% per share with a minimum of $5.
Mox's CEO Barbaros Uygun stated the bank's vision of building a global benchmark using Hong Kong as a base. With this move, their customers can now confidently gain access to emerging asset classes. Speaking on the move, Uygun had this to say, “Adding Crypto ETFs to the Mox Invest platform empowers our customers to gain access to emerging asset classes with confidence.”
Hong Kong only approved the trading of Spot crypto ETFs in April 2024, as the country looks to assert its status as a crypto hub for the Far East. Incredibly, Mox Bank, which only began operations in September 2020, has revealed that 28% of its customers are already invested in crypto. 18% of those are active crypto traders.
Why Invest in Crypto ETFs?
Are you wondering; why invest in crypto ETFs? These funds provide diversification and are a simpler way to invest in cryptocurrencies. Crypto ETFs bring a sense of security and regulatory confidence to investors looking to gain exposure to digital assets without directly owning them. Clients of the bank who choose to explore these emerging asset classes will do so within a trusted environment, benefiting from lower transaction fees and the convenience of the Mox app.
Future Plans for Direct Crypto Investments
Mox has also announced plans to offer direct crypto investments through a partnership with a licensed exchange. At the moment, only two exchanges, HashKey and OSL, are authorized to offer crypto trading in Hong Kong. This future offering will help solidify Mox’s position as a leading player in the nation’s crypto investment space.
Meanwhile, Jayant Bhatia who is the bank’s chief product officer, while speaking to the South China Morning Post, said that the crypto ETF launch “is just the start of what Mox intends to offer in the crypto investing space.” However, the official failed to elaborate when quizzed on crypto trading.