Hong Kong became the first region in Asia to approve Bitcoin and Ethereum spot ETFs in April. With virtual assets gaining more recognition in Hong Kong, local brokerages have started to offer trading services for cryptocurrencies such as Bitcoin. Some estimates suggest that revenue from virtual assets could account for around 25% of a company’s total income.
According to a report from Hong Kong Securities Times on June 1, the transitional period for the licensing system of virtual asset trading platforms in Hong Kong officially ended. Currently, only two virtual asset trading platforms, OSL Digital Securities Limited and Hash Blockchain Limited, have obtained licenses in Hong Kong. There are also 11 applicants in the queue for qualification.
It is worth noting that some Hong Kong brokerages have been authorized to directly provide virtual asset trading and advisory services to retail investors, including cryptocurrencies such as Bitcoin and Ethereum.
Investors who wish to trade Bitcoin and other virtual assets on Hong Kong brokerage apps need to open a virtual asset account, which involves several steps. The threshold for virtual asset trading set by Hong Kong brokerages is as low as $100, and investors can directly invest in virtual asset spot trading, virtual asset-related futures ETFs, and private funds through the brokerage apps.
To attract investors, some Hong Kong brokerages are offering a series of promotional activities, such as a three-month commission-free offer for virtual asset accounts. By the end of May, some Hong Kong brokerages revealed that revenue from virtual assets could make up about 25% of their total income, or even one-third. This is mainly because these brokerages have the advantage of entering the virtual asset business early, and their investments in virtual assets have already turned a profit.
It is understood that the introduction of cryptocurrency trading services by Hong Kong brokerages can attract two types of customers: cryptocurrency investors who need to diversify their profits into other investments such as stocks, and traditional stock investors who may also try investing in cryptocurrencies during a downturn in the Hong Kong stock market.
Several Hong Kong brokerages have started to offer Bitcoin trading. On May 6 this year, Tiger Brokers (Hong Kong) announced the official launch of virtual asset trading services, supporting 18 cryptocurrencies including Bitcoin and Ethereum. Last year, on November 24, Victory Securities in Hong Kong became the first licensed corporation approved by the Securities and Futures Commission to provide virtual asset trading and advisory services to retail investors. Victory Securities further announced on June 12 this year that its app can now facilitate the deposit and withdrawal of cryptocurrencies, expanding its services in the cryptocurrency market.
Victory Securities also previewed a future solution called “Buying Stocks and Coins Made Easy,” where customers can enjoy an integrated experience of virtual asset and securities services through their unique trading platform. Similarly, on November 24 last year, Interactive Brokers in Hong Kong also received approval for virtual asset trading for retail clients, allowing trading of Bitcoin and Ethereum.