Hong Kong Asset Managers Working to Include Staking in Spot Ether ETFs, Hope for Approval This Year

Hong Kong Asset Managers Push for Staking Feature in Spot Ether ETFs

Hong Kong asset managers are making moves to incorporate staking within their spot ether exchange-traded funds (ETFs) in hopes of securing approval for the staking reward feature this year. Animoca Brands Chairman Yat Siu revealed in an interview with The Block that discussions are underway in Hong Kong for ETH staking, with the likelihood of approval in Asia before the U.S. being almost certain.

HashKey, in collaboration with Bosera, is working on a proposal to introduce ether staking in their ETFs. Livio Weng, CEO of HashKey Exchange, stated that they are developing a plan to earn rewards without increasing risks, with more details currently under discussion.

Additionally, Blockdaemon, a blockchain infrastructure provider, is in talks with Hong Kong ETF issuers and custodians to explore offering staking services for the ETFs. Glenn Woo, head of sales for APAC at Blockdaemon, expressed optimism about getting ether staking approved this year, highlighting it as a crucial missing piece in the industry.

Despite the initial excitement surrounding spot crypto ETFs in Hong Kong, their performance has been lackluster compared to U.S. counterparts. Siu emphasized the importance of competitiveness and pricing to attract buyers from both the east and west.

The potential inclusion of staking rewards could give Hong Kong spot ether ETFs a competitive edge over U.S. offerings, as the SEC has indicated it won’t allow such a feature for now. Woo echoed Siu’s sentiments, noting that the lack of a staking feature is deterring potential Ethereum ETF buyers.

Overall, industry players are hopeful that staking will be approved soon, positioning Hong Kong as a key player in the ETF market. The push for staking in ETFs reflects a broader effort to enhance the attractiveness and competitiveness of Hong Kong’s crypto offerings.