Hong Kong regulators said they are ready to consider applications for spot crypto exchange-traded funds (ETFs).

In a joint statement, the Securities and Futures Commission (SFC) and Hong Kong MonetaryAuthority (HKMA) said the virtual asset environment has changed since 2018, when the sFOformulated a "professionalinvestors only" regulatory approach.

Hong Kong has been loosening its approach to crypto this year, and the regulators' opinion onretail exposure to digital assets has shifted. ln October, the SFC updated its rule book to allowa broader range of investors to engage in spot-crypto and ETF investing. Then, last monthSFC Chief Executive Officer Julia Leung said the regulator was moving toward allowing retailamid investors to buy spot crypto ETFs and would "welcome proposals using innovativetechnology that boosts efficiency and customer experience" provided any risks wereaddressed

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The virtual asset landscape has evolved rapidly and begun to expand into mainstreamfinance," the two regulators said in Friday's statement. The sFc "is prepared to acceptapplications for the authorisation of other funds with exposure to virtual assets, including virtuaasset spot exchange-traded funds (VA spot ETFs)."