Hong Kong is considering the possibility of approving the staking of Ethereum exchange-traded funds (ETFs) by 2024. Animoca Brands President Yat Siu recently disclosed in an interview that asset managers in the country are eager to incorporate staking into their Ethereum ETFs, with hopes that the regulatory authorities will give the green light later this year, as reported by The Block on June 7th.
The Hong Kong Securities and Futures Commission (SFC) has been reviewing the potential inclusion of an Ethereum staking option for ETF issuers since the end of May. Siu mentioned that discussions regarding Ethereum staking are currently underway in Hong Kong, and he believes that approval for this feature in Asia may come before the United States.
Siu expressed optimism, stating, “In terms of speed, I am hopeful that this could happen within the year. However, the outcome of the US elections could also play a significant role in determining the timeline for approval.”
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 initial anticipation of approval, major issuers decided to make adjustments and removed staking from their proposals.
This development marks a significant step for the cryptocurrency industry in Hong Kong, as the SFC considers allowing Ethereum ETF staking. This decision contrasts with the stance taken by the US Securities and Exchange Commission (SEC), which views staking services as investment contracts and a potential violation of securities laws.
According to Bloomberg, the SFC is evaluating whether Ethereum ETF issuers in Hong Kong should be permitted to stake ETH. The regulator has reportedly been engaging with crypto ETF issuers in Hong Kong to discuss offering staking services through licensed platforms.
It is important 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 of financial loss.