Could Hong Kong be on the brink of approving the staking of Ethereum exchange-traded funds (ETFs) by 2024? Animoca Brands President Yat Siu recently shared in an interview that asset managers in the country are eager to incorporate staking into their Ethereum ETFs, with hopes that the regulator will give the green light later 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 including an Ethereum staking option for ETF issuers, focusing on the second-largest cryptocurrency in terms of market cap.
Siu disclosed that discussions regarding Ethereum staking are currently underway in Hong Kong, with a high probability of approval in Asia before the United States. “In terms of timeline, part of me is optimistic that this could happen within the year,” Siu stated. “If there isn’t much movement in the betting space throughout the year, then the outcome of the election will play a role in determining how swiftly this could progress in the US.”
Following the approval of Ethereum ETFs in the US on May 23rd, asset managers in the country made adjustments to their proposals by removing the staking feature. Despite the potential approval, major issuers decided to alter their proposals to exclude staking.
In a significant development for the cryptocurrency industry, the Securities and Futures Commission in Hong Kong is considering allowing the inclusion of an Ethereum staking option for ETF issuers. This move, as reported by Bloomberg on May 23rd, contrasts with the stance taken by the US Securities and Exchange Commission (SEC), which views staking services as investment contracts and a violation of securities laws.
The SFC has been actively assessing whether ETF issuers in Hong Kong should be permitted to stake ETH, reaching out to crypto ETF issuers in the region to discuss the provision of staking services through licensed platforms.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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