Nikolas Sargeant
Mox Bank, a digital banking venture backed by Standard Chartered, has made a groundbreaking move in Hong Kong's financial landscape. On Wednesday, the bank announced the expansion of its investment offerings to include cryptocurrency exchange-traded funds (ETFs), making it the first virtual bank in the region to provide such crypto-related investment products.
This initiative comes in response to a survey indicating that approximately one-third of Hong Kong residents have engaged with cryptocurrencies, with a similar proportion of crypto owners expressing interest in banks offering crypto-related services.
Competitive Pricing for Bitcoin and Ethereum ETFs
Mox is leveraging its virtual bank status to offer lower-cost access to Bitcoin and Ethereum ETFs through its Mox Invest platform, launched in February. The bank charges a 0.12% transaction fee (minimum HK$30) for Hong Kong-listed ETFs and a 0.01% per share fee (minimum US$5) for US-listed ETFs. This competitive pricing strategy aims to differentiate Mox from traditional brokerage platforms.
Currently, Mox offers ETFs that directly invest in Bitcoin and Ethereum, as well as US crypto futures. However, US spot crypto ETFs are not available through the platform.
Future Plans and Market Context
Looking ahead, Mox plans to introduce direct cryptocurrency purchases on its platform, a feature that has garnered interest among financial service providers in the region.
This expansion into crypto financial services comes during a period of market volatility for cryptocurrencies. Bitcoin, which reached a high of US$73,738 in March, recently experienced a significant drop, reflecting broader economic concerns and asset sell-offs.
Mox's initiative represents a significant step in the integration of cryptocurrencies into mainstream banking services in Hong Kong, potentially setting a precedent for other financial institutions in the region.
