Hong Kong has approved spot Bitcoin and Ethereum ETFs, sparking discussions about the possibility of allowing ETH staking for spot Ethereum ETF issuers. Animoca Brands co-founder Yat Siu believes that Hong Kong may allow staking of spot ETH ETFs this year. HashKey, a Hong Kong ETF issuer, is currently working on a proposal to incorporate ETH staking into ETFs.
Yat Siu mentioned in an interview with The Block that negotiations are ongoing in Hong Kong to introduce staking functionality to spot Ethereum ETFs. He expressed his belief that Asia may approve ETH staking before the USA, possibly in 2024. Livio Weng, CEO of HashKey, confirmed that they are exploring the addition of staking to ETH ETFs to earn rewards without increasing risks.
In contrast, the SEC in the USA has been skeptical about the staking feature in Ethereum ETF applications, leading applicant companies to remove it from their proposals. Hong Kong seems to be more proactive in considering the staking feature for spot ETFs, highlighting the potential for faster approval compared to the USA.
It remains to be seen whether staking will be approved in Hong Kong or the USA first, with industry participants in Hong Kong pushing for approval this year. The debate continues on the future of staking in Ethereum ETFs, as different regulatory approaches in different regions shape the landscape of crypto investment opportunities.