Mox Digital Bank Adds Crypto ETFs, Plans Direct Investments
Mox, a subsidiary of Standard Chartered, has made headlines by starting to offer crypto exchange-traded funds (ETFs) to its customers. This move is part of a broader plan to eventually allow direct crypto investments.
Mox is one of several digital banks in Hong Kong providing access to crypto ETFs, but it distinguishes itself with lower fees. The bank currently offers bitcoin (BTC) and ether (ETH) ETFs through its Mox Invest platform.
CEO Barbaros Uygun stated, “Adding Crypto ETFs to the Mox Invest platform empowers our customers to gain access to emerging asset classes with confidence, allowing them to explore new investment opportunities within the evolving crypto ecosystem in a regulated and trusted environment and through a safe and simple way via the Mox app.”
Lower Fees
Mox offers a competitive fee structure for its ETFs. The bank charges 0.12% of the transaction volume with a minimum fee of HK$30 ($3.85) for Hong Kong-listed ETFs and 0.01% with a minimum of $5 for U.S.-listed ETFs. This fee structure is the cheapest among banks in the region. Henry Lau, Mox's head of investment, highlighted this in a statement to the SCMP.
Growing Popularity of Crypto ETFs
U.S.-listed spot bitcoin ETFs have seen significant inflows, with over $17 billion invested since January. Spot ether ETFs, introduced in July, have experienced $364 million in outflows due to investors pulling money from Grayscale’s Ethereum Trust. Other funds, like BlackRock’s iShares Ethereum Trust, are nearing the $1 billion mark, currently standing at $870 million.
In contrast, Hong Kong’s crypto ETFs have seen less demand. Data from Coinglass shows no inflows this month for the three issuers: Bosera HashKey, ChinaAMC, and Harvest Global.
Future Plans
Mox also plans to offer direct crypto investments through a partnership with a licensed exchange. Currently, only HashKey and OSL are licensed to offer crypto trading in Hong Kong.
This initiative by Mox signifies a notable shift in the digital banking landscape in Hong Kong, providing investors with more accessible and cost-effective ways to venture into the crypto market.
