Hong Kong Gives Green Light to Ethereum ETF Staking Feature?

Bittime - Andrew Vranjes presents Blockdaemon revealed that regulators in Hong Kong will likely give approval to the spot Ethereum ETF staking feature by the end of this year.

This was revealed at the Token2049 conference which took place in Singapore. If true, then Hong Kong will be the first country to approve Ethereum ETF staking. 

Blockdaemon: Ethereum ETF Staking Feature

Blockdaemon is currently collaborating with several publishers of the ETF crypto spot in Hong Kong to develop a viable staking solution. According to Vranjes, discussions with local regulators are ongoing. 

Blockdaemon seeks to ensure that staking functions can be approved with certain regulations. This means that the staking feature will probably be introduced in stages, starting with accredited investors first.

Vranjes added that approval from regulators in Hong Kong would probably come before the US approves a similar feature. This certainly provides benefits for Hong Kong to strengthen its position as a global crypto center.

Read Also: Ethereum ETF Potentially Pushes ETH Price to Reach $6,000  

Ethereum ETF Staking Feature

KETF performance in Hong Kong is considered to be still less than optimal compared to the US. However, with the possibility of features staking ETF Ethereum, ETFs in Hong Kong can gain significant advantages. 

Currently, the trading volume of the 3 spot Ethereum ETFs in Hong Kong is still relatively small. Based on data from SosoValue, daily trading volume for these three products is only $390,000, with zero daily cash flow. 

In comparison, 9 crypto ETFs in the US recorded trading volume of $129 million with net daily fund flows reaching $9.5 million on the same day.  

Hong Kong Regulators are More Proactive

One of the factors that makes a feature staking ETF Ethereum In Hong Kong, what is most eagerly awaited is the proactive attitude of the Hong Kong regulator. Vranjes explained that Blockdaemon and Hong Kong regulators have discussed the technical documents in detail.

Therefore, Blockdaemon and ETF issuers hope to ensure that the staking feature of these Ethereum ETFs can be approved to a high standard, maintaining market integrity, while providing profits for investors.  

Benefits of Ethereum ETF Staking Feature

If Hong Kong regulators approve the feature staking ETF Ethereum, this potentially provides an opportunity for investors to earn returns from Ethereum ETF products. 

By integrating a staking feature into an ETF product, investors will not only profit from increases in the price of the underlying asset, but also from the staking rewards received. 

Read Also: SEC Rejects 19b-4 Application for Solana ETF Proposed by 21Shares and VanEck  

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