- Regulatory approval for staking features in Hong Kong could outpace other markets, including the United States.
- Discussions with key stakeholders like Blockdaemon support optimism for staking approval within the year.
Hong Kong may soon introduce staking features for spot Ethereum ETF by the end of the year, as indicated by insights from industry leaders. This development could usher in a new chapter for cryptocurrency investments in the region.
Yat Siu, Chairman of Animoca Brands, has suggested that staking capabilities could be added to Ethereum ETFs in the near future. This initiative is part of a broader trend in the global cryptocurrency finance sector, aiming to enhance the utility and attractiveness of crypto-based financial products.
We hope to advance some explorations in this area [of ether staking] in a compliant and controlled manner without increasing risks.
Staking allows token holders to participate in and benefit from the network’s consensus mechanisms. This process enhances the blockchain’s security and operational efficiency.
Integrating staking into ETFs would merge the reliability of traditional investment structures with the cutting-edge elements of the crypto economy, likely attracting both individual and institutional investors.
The potential inclusion of staking in Ethereum ETFs could position Hong Kong as a frontrunner in the global market, possibly outpacing other major markets including the United States, where regulatory constraints hinder similar innovations.
The drive towards staking has engaged several key players in the industry. HashKey, which co-manages a spot Ethereum ETF in Hong Kong, is drafting a proposal to assess the potential benefits and challenges of incorporating staking.
Livio Weng, CEO of HashKey Exchange, highlighted the aim to progress in this area responsibly, ensuring compliance and minimal risk enhancement.
Additionally, discussions with stakeholders such as Blockdaemon, a blockchain infrastructure provider, and other market participants have generally supported the view that regulatory approval for staking features could be achieved within the year. Glenn Woo, APAC sales head at Blockdaemon, reported a positive outlook from recent talks with issuers, VATPS, and custodians.
Based on my discussion this week and last week with the participants, the issuers, the VATPS [and] the custodians, we all kind of have the positive outlook in terms of getting that [ether staking] approved as well..
Introducing staking to Ethereum spot ETFs could notably improve the competitive position of Hong Kong’s crypto offerings compared to those in the U.S., where similar features face regulatory barriers. Woo noted that this could provide a substantial competitive edge, attracting a global audience looking for dynamic investment opportunities in the crypto sector.
That could be a competitive edge because if you are able to get staking, then there is a benefit for that […] I think of this as baby steps — the first steps. Now, the industry has to push on other areas to open it up. I think staking could be the big, big differentiator for Hong Kong.
The potential for staking in Ethereum ETFs highlights opportunity for Hong Kong’s cryptocurrency market. This move aligns with global efforts to enhance the functionality of crypto financial products and could position Hong Kong as a leading market, drawing international interest.
