Hong Kong is contemplating the approval of Ethereum ETF staking in the near future. Animoca Brands President Yat Siu recently disclosed in an interview that asset managers in the country are eager to incorporate staking in their Ethereum ETFs, with hopes of regulatory approval by the end of this year, as reported by The Block on June 7th.
Since the end of May, the Hong Kong Securities and Futures Commission (SFC) has been evaluating the possibility of adding an Ethereum staking option for ETF issuers, focusing on the second-largest cryptocurrency in the market.
Siu mentioned that discussions are underway regarding Ethereum staking in Hong Kong, and it is highly likely that the feature will be approved in Asia before the United States. He expressed optimism about the speed of the approval process, hinting that it could happen within this year, depending on market dynamics and regulatory decisions.
Following the approval of Ethereum ETFs in the US on May 23, asset managers in the country revised their proposals to exclude the staking feature. Despite initial plans for staking, major issuers decided to remove it from their proposals in anticipation of regulatory approval.
The move by the Hong Kong financial regulator to consider allowing Ethereum ETF staking marks a significant development for the cryptocurrency industry. In contrast to the US Securities and Exchange Commission (SEC), which views staking services as investment contracts, the SFC in Hong Kong is exploring the possibility of permitting staking for Ethereum ETF issuers.
According to Bloomberg, the SFC has been engaging with crypto ETF issuers in Hong Kong to discuss the provision of staking services through licensed platforms. This decision could have a positive impact on Ethereum traders in the region, as optimism grows following the approval of ETFs.
It is essential to note that the views expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries inherent risks, and individuals should exercise caution when engaging in such activities.