Hong Kong’s Mox Bank Launches Spot Bitcoin and Ether ETF Trading, Sets New Standard for Crypto Investment

• Mox Bank now offers direct trading of Bitcoin and Ether ETFs, positioning itself as a pioneer in the virtual banking sector.
• Mox’s low fees for crypto ETFs, with no extra custodian charges, aim to attract cost-conscious crypto investors.
• Mox plans to expand its crypto offerings with direct purchases and trading, partnering with a licensed exchange for broader market access.

Mox, a virtual bank supported by Standard Chartered, is now offering its clients cryptocurrency exchange-traded fund (ETF) trading. With this action, Mox becomes the first bank of its sort to allow spot Bitcoin and Ether ETF trading directly on its platform.

Therefore, by working with a licensed exchange to facilitate direct purchases and trading of cryptocurrency assets, the bank hopes to expand the range of cryptocurrency products that it offers.

Furthermore, Mox charges a minimum of $3.85 for ETFs listed in Hong Kong and only 0.12% of transaction volume, making its fees competitive. For US-listed derivatives ETFs, the fee is 0.01% per share with a minimum of $5. Moreover, Mox does not impose any additional custodian or management fees beyond those charged by the asset management companies.

Innovative Approach to Crypto Investing

Mox CEO, Barbaros Uygun, emphasized the bank’s commitment to innovation and responsiveness to changing markets. He stated, “Adding Crypto ETFs to the Mox Invest platform empowers our customers to gain access to emerging asset classes with confidence.” Additionally, Jayant Bhatia, the bank’s chief product officer, highlighted that this launch is just the beginning of Mox’s offerings in crypto investing.

The approval of spot crypto ETFs in Hong Kong on April 30 marked a step in the country’s efforts to position itself as a crypto hub in the Far East. However, the three Hong Kong spot ETF issuers, Bosera HashKey, ChinaAMC, and Harvest Global, have struggled to gain traction. According to CoinGlass data, there have been zero flows for the three ETFs in August, with total assets under management at just $236.3 million.

Strategic Expansion and Future Plans

In September 2020, Mox made its debut, and as of now, 28% of its members have invested in cryptocurrencies, with 18% of them being active traders. The bank’s most recent move shows how committed it is to expanding into the cryptocurrency. Additionally, Standard Chartered is taking part in the stablecoin sandbox that the Hong Kong Monetary Authority unveiled in the middle of July.

Besides offering crypto ETFs, Mox plans to allow direct cryptocurrency purchases on its platform. Bhatia did not specify when crypto trading would be available but mentioned that the bank would team up with a licensed exchange.

Hong Kong requires operators without a virtual asset trading platform license to use a licensed exchange for crypto trading. Currently, only local exchanges HashKey and OSL are licensed for retail crypto trading.

Mox aims to differentiate itself on price by highlighting its low overhead as a virtual bank. This strategic approach positions Mox as a cost-effective option for crypto ETF trading, reinforcing its commitment to innovation and market responsiveness.