KPMG: Self-custodial institutional investors can hold virtual assets through Hong Kong ETFs without having to convert them into fiat currency beforehand

Spot virtual asset ETFs issued in Hong Kong offer several advantages over other jurisdictions, including the protection offered to investors by the Securities Supervision Commission and more diversified redemption methods, according to Jensberg, director of risk consulting at KPMG China in Hong Kong. Physical redemption and subscription options are particularly attractive to investors, and institutional investors holding virtual assets under their own custody can consider holding the assets through ETFs without having to convert them into legal tender beforehand. The requirements for issuing virtual asset spot ETFs in Hong Kong are very strict, including a detailed review of the internal management and operational capabilities of the applicant issuer to ensure that it complies with relevant regulations and provides adequate protection for investors.