The Hong Kong Securities and Futures Commission pointed out in the "Circular on the Recognition of Virtual Asset Investment Funds by the Securities and Futures Commission" that the trustee/custodian of virtual asset funds and any representative responsible for holding virtual assets recognized by the Securities and Futures Commission should ensure that the holding of virtual assets is separated from their own assets and assets held for other clients, and most of the virtual asset holdings should be stored in cold wallets. The amount and term of virtual asset holdings stored in hot wallets should be minimized unless necessary for subscription and redemption, and the mnemonic words and private keys should be stored securely in Hong Kong, with strict restrictions on authorized personnel, sufficient resistance to speculation (such as through non-deterministic generation) or collusion (through measures such as multi-signature and key splitting), and appropriate backup to reduce any single point of failure.