Could Hong Kong be on the verge of approving the inclusion of Ethereum staking in exchange-traded funds (ETFs) by 2024? Animoca Brands President Yat Siu recently disclosed in an interview that asset managers in the country are racing to integrate 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 evaluating the possibility of adding an Ethereum staking option for ETF issuers since the end of May, focusing on the second-largest cryptocurrency by market cap. Siu mentioned that Hong Kong is currently in talks about Ethereum staking and suggested that approval in Asia may precede that in the US.
“I am cautiously optimistic that we could see this happen within this year,” Siu stated. “The speed of progress will likely be influenced by market dynamics and the outcome of the upcoming election in the US.”
Following the approval of Ethereum ETFs in the US on May 23rd, asset managers in the country made amendments to their proposals by removing the staking feature. Despite the potential for approval, major issuers decided to play it safe by excluding staking from their offerings.
In a significant development for the cryptocurrency sector, the SFC in Hong Kong is exploring the possibility of allowing Ethereum staking in ETFs, diverging from the stance of the US Securities and Exchange Commission (SEC). The SEC considers staking services as investment contracts, which contravenes US securities laws.
The SFC has been in discussions with crypto ETF issuers in Hong Kong to explore the provision of staking services through licensed platforms, according to Bloomberg. This move could have far-reaching implications for the industry, as it opens up new investment opportunities in the world of digital assets.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries risks of financial loss.
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