Bloomberg reported that the Securities and Futures Commission (SFC) of Hong Kong has been in discussions with an Ethereum ETF issuer regarding the provision of Ethereum staking services through licensed platforms. This could potentially unlock a previously removed passive income source for ETF issuers.
According to insiders, these discussions are still ongoing, and there is currently no specific timeline for a decision. If approved, the inclusion of staking rewards could enhance the demand for Ethereum spot ETFs in the Hong Kong market, as ETF investors would be able to earn passive income from participating in the Ethereum network validation while holding the ETF. Data from stakingrewards shows that the current annual yield for Ethereum staking is approximately 3.27%.
Serra Wei, CEO of blockchain financial services company Aegis Custody, stated that the discussions between Hong Kong ETF issuers and regulatory authorities regarding Ethereum staking have been constructive. Wei believes that incorporating staking into Ethereum spot ETFs would be an important milestone for Hong Kong, in line with local regulatory standards. However, Wei, who has not been involved in the discussions with the Hong Kong Securities and Futures Commission, expressed this opinion.
In comparison, while the U.S. Securities and Exchange Commission (SEC) recently took a significant step forward in Ethereum spot ETFs, U.S. issuers such as Fidelity Investments and Ark Investment have removed plans to add Ethereum staking services to their proposed ETFs before receiving approval.
