ZA Bank launches a sandbox pilot for virtual asset trading in Hong Kong, responding to high demand from retail investors interested in crypto.
ZA Bank has recently initiated a sandbox pilot for its virtual asset trading service in Hong Kong. This trial is available to select retail customers and aims to address the rising demand for cryptocurrency trading in the region. A press release on October 29 revealed that a recent survey indicated that 75% of retail investors in Hong Kong are interested in trading crypto.
HKIFA’s survey involved 500 respondents with high incomes and liquid assets who invest in funds. The study revealed that more than 50% of the respondents are positive about the prospects for the world economy and the economies of Hong Kong and Mainland China. In particular, 55% of all respondents expect the state of the global economy to improve within the next year. On the other hand, 10% of respondents have a negative attitude.
Strong Demand for Cryptocurrency Trading in Hong Kong
The survey revealed a strong focus on cryptocurrencies among respondents. Of these, 41% want exposure through spot or futures ETFs traded in Hong Kong, while 39% want exposure from regulated VA trading platforms. Investors seek portfolio diversification and short-term speculation.
While the overall economic climate seems to remain relatively positive, a number of investors seem reluctant to put their cash to work. This precaution may be due to the expected decline in interest rates, which is considered to start at the end of 2024 or early 2025. Overall, 42 % of the respondents opined that if the interest rate comes down to an average of 2.4%, they will switch from cash to investment.
Other industry authorities, such as Mr. Nelson Chow and Mr. Simon Wong, have encouraged long-term investments because of their low risks and profitability, mutual funds being an example. However, the industry warns its investors to be careful with fluctuating prices, especially due to geopolitical risks and the upcoming US presidential election.
Overall, crypto trading in Hong Kong is shifting, mainly due to new investors’ demand and banks’ actions like ZA Bank. In its pilot implementation, the program may act as a basis for the integration of more digital assets in the region.
