Odaily News Cai Fengyi, executive director of the investment products department of the Hong Kong Securities and Futures Commission, said today at the Hong Kong Web 3 Carnival that the Hong Kong Securities and Futures Commission will issue a circular today to allow licensed virtual asset trading platforms to provide pledge services, including pledging for virtual asset spot ETFs. Pledges allow investors to lock their virtual assets to support blockchain networks and earn returns, but due to the risks involved, the Securities and Futures Commission will implement additional safeguards, including requiring licensed platforms to keep pledged virtual assets and setting an upper limit on the proportion of virtual asset spot ETFs that can be pledged to manage liquidity risks. Cai Fengyi also said that the Hong Kong Securities and Futures Commission is expanding the scope of eligible virtual asset targets. Initially, virtual asset spot ETFs focused mainly on Bitcoin and Ethereum. Now that more virtual assets have met the conditions for retail trading on licensed platforms, they will pave the way for the diversification of ETF products, such as a single ETF that tracks a basket of virtual assets.