According to the latest announcement, the Hong Kong Monetary Authority has approved the opening of re entrustment investment in foreign virtual asset ETFs. However, considering the high investment risk of virtual asset ETFs, it has referred to the suggestions of industry associations and initially only allowed "professional investors" to invest in foreign virtual asset ETFs through re entrustment. Further observation and rolling review will be conducted in the future. The Financial Supervisory Commission wrote in the announcement:

In order to provide investors with a diverse range of products and enhance the momentum of our securities firms're entrustment business, and to further examine the higher investment risks of foreign virtual asset ETFs, the Financial Supervisory Commission (hereinafter referred to as the FSC) has adopted the recommendation of the Securities Industry Association of the Republic of China, allowing professional investors to invest in foreign virtual asset ETFs through re entrustment

The Financial Supervisory Commission pointed out that this opening includes the following five key points:

1、 Investor identity: Examining the complex nature and volatile price of virtual assets, the investment risk of virtual asset ETFs is relatively high, and securities firms entrusted to buy and sell foreign virtual asset ETFs are limited to professional investors. Professional investors include professional institutional investors, high net worth investment entities, high asset clients, legal entities or funds belonging to professional investors, and natural persons belonging to professional investors.

2、 Strengthen understanding of customer procedures: Securities firms should establish an appropriate suitability system for virtual asset ETF products and report it to the board of directors for approval. Before the initial purchase by the principal, they should evaluate the principal's professional knowledge and investment experience in virtual assets and related products to understand the suitability of the customer's entrusted buying and selling of the product.

3、 Sign a risk warning letter: Unless the principal is a professional institutional investor, the principal shall sign a risk warning letter before the initial purchase, and the securities firm may accept the commission.

4、 Provide product information: Securities firms should provide virtual asset ETF related product information before the principal's initial purchase, except for professional institutional investors.

5、 Regular education and training: Securities firms should regularly provide virtual asset and related product education and training to their business personnel to facilitate their full understanding of the product.