According to online reports, Cai Fengyi, executive director of the Investment Products Department of the Hong Kong Securities Regulatory Commission, attended the Hong Kong Web3 Carnival today (April 7) and said that the Hong Kong Securities Regulatory Commission will issue a circular today to allow licensed virtual asset trading platforms to provide pledge services, including providing pledge for virtual asset spot ETFs. Pledge allows investors to lock in their virtual assets to support the blockchain network and receive returns. However, due to the risks, the CSRC will implement additional safeguards, including requiring licensed platforms to keep pledged virtual assets and setting a cap on the proportion of virtual assets spot ETFs that can be pledged to manage liquidity risk. Choi Fengyi also said that the Hong Kong Securities and Futures Commission is expanding the scope of qualified virtual asset targets. Initially, virtual asset spot ETFs mainly focused on Bitcoin and Ethereum. Now more virtual assets are eligible for retail trading on licensed platforms, which will pave the way for diversification of ETF products, such as a single ETF that tracks a basket of virtual assets.