KPMG: Self-custodial institutional investors can hold virtual assets through Hong Kong ETFs without converting them into fiat currency in advance

Jens Bader, Managing Director of Risk Consulting at KPMG China in Hong Kong, stated that compared to other regions, Hong Kong's issuance of virtual asset spot ETFs has multiple advantages, including the protection provided by the Securities and Futures Commission for investors and more diversified subscription and redemption methods. For investors, the options of physical redemption and subscription are attractive. Institutional investors who self-custody virtual assets can consider holding relevant assets through ETFs without the need to exchange them for fiat currency in advance. Hong Kong's requirements for the issuance of virtual asset spot ETFs are very strict, including a detailed review of the internal management and operational capabilities of the issuer, to ensure compliance with relevant regulations and provide sufficient protection for investors.