Ethereum
Hong Kong May Allow Staking for Ethereum Spot ETF Staking in 2024
According to reports, HashKey, which manages Bitcoin and Ether ETFs in Hong Kong, is preparing an ether staking proposal, aiming to earn rewards without increasing risks.
Hong Kong asset managers are reportedly working to include staking in their spot exchange-traded funds (ETFs). The goal is to get approval for the staking reward feature by the end of this year.
Animoca Brands President Yat Siu confirmed these developments in a recent interview with The Block, stating that Hong Kong “is currently in discussions for ETH staking.”
He noted that if progress stalls, the outcome of the US elections could influence the speed of adoption of the project there. “There’s an optimistic side of me that wants this to happen within a year,” Siu said.
HashKey strategic proposal
HashKey, which runs Bitcoin and Ether ETFs in Hong Kong alongside Bosera, is also preparing to introduce ether staking. CEO Livio Weng mentioned that they have a plan to earn rewards without increasing risks.
“We developed a plan designed to gain rewards without necessarily increasing risk,” Weng said.
Meanwhile, Glenn Woo, head of sales for APAC at Blockdaemon, revealed that the company is in talks with Hong Kong ETF issuers and custodians to explore staking services. Woo highlighted the industry’s positive outlook on the approval of ether staking.
“Based on my discussions with participants, issuers, VATPs and custodians, we also have a positive outlook on the approval of ether staking,” Woo said.
Hong Kong approved the approved Bitcoin and Ethereum spot ETF on April 15.
The Potential of Staking
Staking involves users validating transactions on a proof-of-stake blockchain, such as Ethereum, by locking up their tokens for a certain period of time in exchange for rewards. This process is popular among cryptocurrency investors to generate passive returns.
Industry insiders believe that integrating stakes into spot ether ETFs could increase investor returns and improve the security and decentralization of blockchain networks.
HashKey’s initiative could set a precedent for other asset managers and ETF issuers, pushing the entire industry towards greater adoption of staking. The ability to earn rewards through staking could make ether ETFs more attractive to a wider range of investors.