Hong Kong Asset Managers Working to Include Staking in Spot Ether ETFs, Hope for Approval This Year
Hong Kong Asset Managers Push for Staking in Ether ETFs
Hong Kong asset managers are making moves to incorporate staking within their spot ether exchange-traded funds (ETFs) in hopes of gaining 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 a high likelihood of approval in Asia before the U.S.
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 the approval of the staking feature this year, highlighting it as a crucial missing piece in the industry.
Despite the initial hype 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 parity with U.S. ETFs for Hong Kong 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. counterparts, as the U.S. Securities and Exchange Commission has indicated reluctance to allow such features. Woo echoed Siu’s sentiments, noting that the lack of a staking feature is deterring potential Ethereum ETF buyers.
Overall, the push for staking in Hong Kong ETFs reflects a broader industry trend towards innovation and differentiation. With regulatory approval potentially on the horizon, Hong Kong asset managers are positioning themselves to capitalize on the growing interest in staking rewards within the crypto market.