Hong Kong Securities Supervision Commission: Providing regulated virtual asset spot ETF products is in the public interest

Choi Fung-yee, executive director of the investment products department of the Hong Kong Securities Supervision Commission, said that in order to meet the needs of local investors, it is in the public interest to provide regulated virtual asset spot ETF products. In addition, the approval of virtual asset ETFs by the SFC is definitely not the same as supporting relevant virtual assets or encouraging the public to invest in related virtual assets. She said that virtual assets themselves are highly speculative and their prices are very volatile, reminding the public that virtual assets are not suitable for all investors. Only those who fully understand them and can bear their risks should consider related products. The virtual asset market has experienced a lot of turbulence in recent years. Whether it is the collapse of stablecoins and the closure of various trading platforms, fraud and other incidents, many investors have suffered heavy losses. However, at the same time, more and more investors are in demand for virtual assets and have made related investments from different channels. Many traditional Financial Institution Groups and intermediaries have also begun to provide services related to virtual asset investment. Therefore, since 2018, the Hong Kong Securities Supervision Commission has introduced a comprehensive framework to regulate a wide range of virtual asset-related activities.