Hong Kong is considering the possibility of approving Ethereum staking in exchange-traded funds (ETFs) by 2024. Yat Siu, the President of Animoca Brands, recently revealed in an interview that asset managers in the country are eager to incorporate staking in 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 evaluating the potential inclusion of an Ethereum staking option for ETF issuers since the end of May, focusing on the second largest cryptocurrency by market cap. Siu mentioned that discussions about Ethereum staking are currently underway in Hong Kong, and he expressed optimism about the feature gaining approval in Asia before the US.
Siu stated, “I am hopeful that this could happen this year in terms of speed. If there isn’t much movement in the betting sector throughout the year, then the outcome of the election will play a significant role in determining how quickly this could be approved in the US.”
Following the approval of Ethereum ETFs in the US on May 23rd, asset managers in the country revised their proposals, removing the staking feature. Despite the potential approval at that time, major issuers decided to make adjustments by excluding staking from their proposals.
This development marks a significant step for the cryptocurrency industry in Hong Kong. The SFC’s consideration of allowing Ethereum ETF staking contrasts with the stance taken by the US Securities and Exchange Commission (SEC), which views staking services as investment contracts and potential violations of securities laws in the US.
According to Bloomberg, the SFC has been engaging with Hong Kong-based crypto ETF issuers to discuss the possibility of offering staking services through licensed platforms. This move underscores the growing interest in Ethereum staking within the Asian market.
Please note that the opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries inherent risks of financial loss, and individuals should exercise caution when engaging in such activities.