Could Hong Kong potentially approve the inclusion of staking in Ethereum exchange-traded funds (ETFs) by 2024? Yat Siu, President of Animoca Brands, recently shared in an interview that asset managers in the country are racing to incorporate staking in their Ethereum ETFs, with hopes that regulators will give the green light later this year, as reported by The Block on June 7th.
Since the end of May, 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 about Ethereum staking are currently ongoing in Hong Kong, with a high possibility of approval in Asia before the US. He expressed optimism about the speed of the process, stating that he hopes for developments this year. In light of recent approvals of Ethereum ETFs in the US on May 23, asset managers there have made adjustments to their proposals, removing the staking feature amid potential regulatory approval.
This move by the Hong Kong financial regulator to consider allowing Ethereum ETF staking marks a significant development in the cryptocurrency industry. While Hong Kong is moving towards embracing this feature, the US Securities and Exchange Commission (SEC) holds a different view, considering staking services as investment contracts that may violate securities laws.
According to Bloomberg, the SFC is in discussions with crypto ETF issuers in Hong Kong to explore the possibility of allowing staking services through licensed platforms. The outcome of these discussions could have a significant impact on the cryptocurrency market, especially for Ethereum traders and investors.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Investing in cryptocurrencies carries risks of financial loss, and individuals should conduct their own research before making any investment decisions.