Hong Kong Spot Ethereum ETF Could Receive Staking Feature Approval This Year, Blockdaemon Says

As Hong Kong looks to become a global cryptocurrency hub, there is a possibility that local regulators will approve staking functionality for spot Ethereum exchange-traded funds (ETFs) this year.

This is according to Andrew Vranjes, Blockdaemon’s vice president and head of international operations, in an interview with The Block at Token2049 in Singapore. He said regulators could approve staking for spot Ethereum ETFs “within certain structures and boundaries.”

Crypto ETF issuers and regulators in Hong Kong are actively participating.

Vranjes added that there is a possibility that a scenario could come to fruition where “accredited investors” can participate in spot Ethereum ETF staking before the rest of the market. Talks with cryptocurrency ETF issuers and regulators Hong Kong Branesi said efforts are underway to provide such a solution.

“We are positive because of the level of conversation,” a Blockdaemon executive told The Block. “I think at this stage, an announcement is closer than it is far away.”

Hong Kong Ethereum ETF lags behind its US counterpart

There was a lot of hype when it came out. Crypto ETF In Hong Kong. However, its performance after launch was disappointing compared to similar funds in the United States.

The difference in performance between the US and Hong Kong spot Ethereum ETFs is evident in the total volume recorded by each region’s investment products on September 16. The three Hong Kong spot Ethereum ETFs recorded a total volume of $390,000 with no movement at all.

Cryptocurrency Market Update (September 19)

– FOMC result is 50bp rate cut
– Hong Kong May Approve Ethereum Staking for Domestic Spot ETFs
– The US spot Bitcoin ETF recorded a net outflow of $52.8 million yesterday.

— Market Meditation (@MrktMeditations) September 19, 2024

Meanwhile, the Securities and Exchange Commission (SEC) reported on Tuesday the 20th that nine spot Ethereum ETFs in the U.S. recorded trading volume of $129 million and net inflow of $9.5 million on the same day. Soso Value.

However, if staking for a spot Ethereum ETF is approved in Hong Kong, the city’s investment product would gain a competitive edge, as the U.S. Securities and Exchange Commission (SEC) has not allowed U.S. ETH ETFs to offer this feature.

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