Could Hong Kong be on the verge of approving the inclusion of staking in Ethereum exchange-traded funds (ETFs) by 2024? Animoca Brands President Yat Siu hinted at this possibility in a recent interview, stating 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.
The Hong Kong Securities and Futures Commission (SFC) has been carefully evaluating the potential addition of an Ethereum staking option for ETF issuers since the end of May, focusing on the second-largest cryptocurrency in terms of market capitalization.
Siu mentioned that discussions surrounding Ethereum staking are currently taking place in Hong Kong, with a high chance of approval in Asia before the United States. He expressed his optimism about the possibility of this feature being implemented this year, emphasizing the importance of ongoing developments in the crypto space and potential regulatory changes.
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 initial considerations, major issuers decided to remove staking from their proposals, highlighting the uncertainty and evolving regulatory landscape surrounding cryptocurrency investments.
The potential inclusion of Ethereum staking in Hong Kong ETFs marks a significant development in the cryptocurrency industry, diverging from the restrictive approach taken by US regulators. While the Securities and Exchange Commission (SEC) in the US views staking services as a violation of securities laws, the SFC in Hong Kong is exploring the possibility of allowing ETF issuers to stake ETH.
According to Bloomberg, the SFC has been engaging with crypto ETF issuers in Hong Kong to discuss the provision of staking services through licensed platforms, signaling a more progressive approach to cryptocurrency investments in the region.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Investing in cryptocurrencies carries inherent risks, and individuals should conduct their own research before making any investment decisions.
