Hong Kong is considering the approval of Ethereum staking in ETFs by 2024, as revealed by Animoca Brands President Yat Siu in a recent interview. Asset managers in the country are eager to incorporate staking in their Ethereum ETFs, with hopes that regulators will give the green light later this year, as reported by The Block on June 7.
The Hong Kong Securities and Futures Commission (SFC) has been evaluating the possibility of adding an Ethereum staking option for ETF issuers since the end of May. Siu mentioned that discussions on Ethereum staking are currently underway in Hong Kong and expressed optimism that approval in Asia could come before the US.
Siu stated, “In terms of speed, there is a part of me that hopes this will happen this year. If we do not see significant progress by the end of the year, the outcome of the elections will play a role in determining how quickly this could happen in the US.”
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 the potential approval at the time, major issuers decided to remove staking from their proposals.
The move by the SFC to consider allowing Ethereum ETF staking is a significant development for the cryptocurrency industry, diverging from the approach taken by the US Securities and Exchange Commission (SEC). The SEC views staking services as an investment contract and considers it a violation of securities laws.
According to Bloomberg, the SFC has been in discussions with Hong Kong crypto ETF issuers about providing staking services through licensed platforms. This move could pave the way for increased adoption of Ethereum staking in ETFs in the region.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Investing in cryptocurrencies carries risks of financial loss.
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