Hong Kong is considering the possibility of approving Ethereum staking in 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 of regulatory approval 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. Siu mentioned that discussions on Ethereum staking are currently underway in Hong Kong, and he believes that approval in Asia may precede that in the US.
Siu expressed optimism about the speed of the approval process, stating that he hopes it will happen this year. He also highlighted the significance of ongoing developments in the US in determining the timeline for approval.
Following the approval of Ethereum ETFs in the US on May 23, asset managers in the country revisited their proposals and removed the staking feature. Despite the possibility of approval at the time, major issuers opted to eliminate staking from their proposals.
This potential move by Hong Kong to allow Ethereum ETF staking represents a significant development for the cryptocurrency industry. While the SFC considers this option, it contrasts with the stance taken by the US Securities and Exchange Commission (SEC), which views staking services as investment contracts that may violate securities laws.
The SFC has been engaging with Hong Kong crypto ETF issuers to discuss the provision of staking services through licensed platforms. This decision could have a substantial impact on the cryptocurrency market, as Hong Kong positions itself as a potential pioneer in approving Ethereum staking in ETFs.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies involves risks and potential financial losses.