HK SFC is negotiating with crypto ETF issuers to allow staking services through licensed platforms. According to experts, it is possible that the staking feature will increase demand for Hong Kong’s spot Ethereum ETF products. It will also help Hong Kong spot Ethereum ETFs gain an advantage over their US counterparts. Because the US SEC is cold on the issue of staking.
The outstanding feature of Hong Kong Ethereum ETFs?
cryptokoin.comAs you follow from , the market has its eye on spot Ethereum ETFs in the US. There is very little time left until the US SEC announces its decision on the VanEck spot Ethereum ETF application. Interestingly, unlike the SEC’s approach, Hong Kong made a surprise move by stating that it would facilitate staking for spot Ethereum ETFs. The Securities and Futures Commission (SFC) has held discussions with Hong Kong’s crypto ETF issuers about potential staking services through licensed platforms, according to sources familiar with the matter. These discussions follow the applicants’ latest proposals to the SFC in recent weeks.
Negotiations continue. There is no firm timeline for a decision at this time, the source says. If the proposal gains approval, the inclusion of staking services could potentially boost demand for Hong Kong’s spot Ethereum ETFs, which have seen relatively low interest since their launch in April, experts say. In addition, this move puts Hong Kong ahead of the United States. Because there likely won’t be any staking functionality in US ETFs. Because the US SEC does not look favorably on this issue. That’s why Valkyrie decided to withdraw its US application. On the other hand, some other US issuers have agreed to remove staking features from their applications.
Will staking provide leverage to HK Ethereum ETF products?
Staking means investors lock their ETH on the Ethereum network. Thus, investors earn passive income. Additionally, staking provides the opportunity to further assist in transaction verification. Currently, Ether staking provides an annual return of approximately 4% in the form of additional cryptocurrencies.
Discussions about staking between Hong Kong ETF issuers and regulators have been productive, according to Aegis Custody CEO Serra Wei, who suggested it would align well with local regulatory frameworks. Although Aegis was not directly involved in discussions with the SFC, “the inclusion of staking in Spot-ETH ETFs would be a significant achievement for Hong Kong,” Wei said. Aegis specializes in providing custody technology solutions to banks in Hong Kong.
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