The HSBC Hong Kong branch is the first in the Hong Kong SAR to provide Bitcoin and Ether Exchange Traded Funds (ETFs). This development is the result of pressure from the region’s banking authority on major banks like HSBC to begin working with cryptocurrency exchanges. The Hong Kong Monetary Authority said in a letter sent in April that accepting cryptocurrency clients should not be made too difficult.

By opening up Bitcoin and Ether ETF trading, HSBC is giving more Hong Kong residents access to these digital assets. The bank has launched a trading platform where customers may invest in cryptocurrencies like Bitcoin and Ether, capitalizing on their rising popularity and potential benefits. This action shows HSBC’s dedication to adapting to its customers’ requirements and joining the digital financial revolution.

Hong Kong’s current attitude toward cryptocurrencies has been more welcoming than that of mainland China’s government. Select cryptocurrencies are once again available for retail trading, and the region has implemented a licensing framework for cryptocurrency exchanges. This change in policy has sparked hope that the cryptocurrency restriction in Mainland China may be loosened as a result of Hong Kong’s example.

The global cryptocurrency sector received a major boost when HSBC Hong Kong agreed to facilitate Bitcoin and Ether ETF exchanges. It’s another example of how conventional banks are beginning to accept and even embrace cryptocurrency transactions. To further legitimize the crypto business, HSBC’s action may encourage other banks and other institutions to explore offering similar services.

Hong Kong has made some progress in accepting cryptocurrencies, but regulatory hurdles and doubts remain. Several applications for a spot Bitcoin ETF are now being reviewed by the U.S. Securities and Exchange Commission (SEC), including one from BlackRock, the largest asset management in the world. The SEC has always said no to such requests, but the growing adoption of cryptocurrency by large financial institutions could change that.

Industry participants have reacted positively to the announcement that HSBC Hong Kong will provide trading of Bitcoin and Ether ETFs. Gemini’s CEO Tyler Winklevoss welcomed the development as proof that Asia has more widespread crypto usage than the United States. This strengthens the rising tide of interest and investment in cryptocurrencies as more people and organizations see their value as a form of alternative investment capital.

Bitcoin was trading at roughly $30,300 and Ether was trading at around $1,800 as of early Monday morning. Cryptocurrency markets are often volatile, but the long-term trend has demonstrated tremendous growth and promise. The market is still being actively watched by investors and traders for signs of opportunity or danger.

First reported on Fortune

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.