Could Hong Kong be on the verge of approving Ethereum staking in ETFs by 2024? Animoca Brands President Yat Siu recently shared in an interview that asset managers in the country are racing 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 7th.
Since the end of May, the Hong Kong Securities and Futures Commission (SFC) has been exploring the possibility of adding an Ethereum staking option for ETF issuers, focusing on the second-largest cryptocurrency by market cap.
Siu mentioned that discussions about Ethereum staking are currently underway in Hong Kong, and he believes that the approval of this feature in Asia may happen before the US. He expressed optimism about the speed of this process, stating, “In terms of speed, there is an optimistic side of me that wants it to happen this year.” He also hinted that the US election outcome could impact the timeline for approval 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, major issuers decided to remove staking from their proposals.
This development in Hong Kong marks a significant step for the cryptocurrency industry, as the SFC considers allowing Ethereum staking in ETFs, contrasting with the SEC’s stance in the US. The US regulator views staking as an investment contract, which would violate securities laws.
The SFC has been in talks with Hong Kong crypto ETF issuers regarding the provision of staking services through licensed platforms. This move signals a shift in the regulatory landscape and could potentially open up new opportunities for Ethereum investors in Hong Kong.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Investing in cryptocurrencies carries inherent risks and potential financial losses.