Could Hong Kong be gearing up to approve the staking of Ethereum-based exchange-traded funds (ETFs) by 2024? Yat Siu, President of Animoca Brands, shared in a recent interview that asset managers in the country are eagerly looking to incorporate staking into their Ethereum ETFs, with hopes that the regulators 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 actively evaluating the possibility of adding an Ethereum staking feature for ETF issuers, focusing on the second largest cryptocurrency by market capitalization.
Siu disclosed that discussions around Ethereum staking are currently underway in Hong Kong, with a strong likelihood of approval in Asia preceding the United States. He expressed optimism about the speed at which this could happen, noting that the outcome of upcoming events could influence the timeline for approval in the US.
Following the approval of Ethereum ETFs in the US on May 23, asset managers in the country revisited their proposals, removing the staking feature amidst potential regulatory approval. However, with Hong Kong now considering allowing Ethereum ETF staking, the cryptocurrency industry is poised for significant developments.
This move by the Hong Kong financial regulator marks a divergence from the stance taken by the US Securities and Exchange Commission (SEC), which views staking services as a violation of securities laws. The SFC’s evaluation of Ethereum ETF issuers in Hong Kong potentially staking ETH indicates a progressive approach towards embracing cryptocurrency innovations.
It is important to note that the views expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries inherent risks, and individuals should exercise caution when engaging in trading activities.