Hong Kong is considering the approval of Ethereum staking in exchange-traded funds (ETFs) by 2024. Yat Siu, President of Animoca Brands, recently shared in an interview that asset managers in the country are eager to incorporate staking into their Ethereum ETFs, with hopes that regulators will give the green light later this year.
According to a report by The Block on June 7th, 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 by market cap.
Siu mentioned that discussions are underway in Hong Kong about Ethereum staking, and he believes it is likely to be approved in Asia before the US. He expressed optimism about the approval happening this year, depending on market movements and regulatory decisions.
Following the approval of Ethereum ETFs in the US on May 23rd, asset managers in the country revised their proposals to exclude the staking feature. Despite the potential approval, major issuers decided to make adjustments by removing staking from their proposals.
This development in Hong Kong marks a significant step for the cryptocurrency industry, as the SFC considers allowing Ethereum ETF staking, contrasting with the stance of the US Securities and Exchange Commission (SEC). While the US views staking services as an investment contract violation, Hong Kong is exploring the possibility of permitting Ethereum staking for ETF issuers.
The SFC has been in discussions with crypto ETF issuers in Hong Kong regarding the provision of staking services through licensed platforms. This move signals a positive shift in the regulatory landscape for cryptocurrencies in Hong Kong, offering new opportunities for investors and asset managers.
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.
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