Staking talks continue in Hong Kong, which approved spot Bitcoin and Ethereum ETFs after the USA.
At this point, while it is being discussed whether the Hong Kong regulator will allow ETH staking to spot Ethereum ETF issuers, Animoca Brands co-founder Yat Siu said that Hong Kong may allow staking of spot ETH ETFs this year.
Speaking to The Block, Yat Siu also said that Hong Kong ETF issuer HashKey is drafting a proposal to add ETH staking to ETFs.
“Negotiations are currently ongoing in Hong Kong to add staking functionality to spot Ethereum ETFs.
At this point, I think that the possibility of ETH staking being approved in Asia before the USA is inevitable and that staking will be approved before the USA.
I think this will happen in 2024. However, no matter how fast, if there is not much movement in staking during the year, I can say that the US election result will be decisive in which region staking will be approved first.”
Livio Weng, CEO of HashKey, which has two spot Bitcoin and Ethereum ETFs in Hong Kong, apart from the co-founder of Animoca Brands, stated that they have prepared a draft to add staking to ETH ETFs and said, “A staking plan designed to earn rewards without increasing risks in ETH “We have prepared it and we are proceeding in a controlled manner.” said.
Weng did not provide further details about the draft, stating that it was still in the discussion stage.
Weng also pointed out that industry participants in Hong Kong aim to have the staking feature approved as soon as this year, saying, “The biggest missing piece in ETH ETFs is thought to be staking.” said.
What is the USA’s Thought on Ethereum ETF and Staking?
As it is known, the staking feature included in the Ethereum ETF applications made in the USA has always been a matter of controversy regarding approval.
Because the SEC was skeptical about the staking feature in Ethereum. At this point, the applicant companies updated their applications by removing the staking feature, which the SEC viewed with suspicion, from their ETF applications.
SEC approves ETH ETF applications without staking feature.
However, Hong Kong is taking bolder steps than the USA and is negotiating with issuer companies before the USA about adding the staking feature to spot ETFs.
*This is not investment advice.
