Investors in Hong Kong Are Warned About The Dangers Of Virtual Asset Spot ETFs
The trading of virtual asset spot ETFs listed in Hong Kong has reportedly been the subject of a statement from the Hong Kong Investor and Financial Education Committee, as reported by Odaily. Similar to equities or other ETFs, investors can purchase and sell these ETFs through banks or securities firms, and they are governed by the Securities and Futures Commission. To decide if virtual asset spot ETFs are appropriate for their investment portfolio, investors must, according to the committee, comprehend the risk profile of these products.
The committee has issued a warning, citing the extreme volatility of virtual asset spot ETFs and their potential for undesired outcomes of diversity in risk. As such, they ought to be viewed as adjunct investments in a portfolio of assets. Investors are urged by the committee’s statement to proceed with prudence and due diligence when purchasing such erratic assets.
SOURCE : Binance News