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Hong Kong regulators could approve staking features for Ethereum spot ETFs (exchange-traded funds) this year, as the region strives to become a global crypto hub.
That’s according to Andrew Vranjes, global director and vice president of Blockdaemon, who told The Block in an interview at Token2049 in Singapore that regulators could approve staking of Ethereum spot ETFs “within certain structures and limits.”
Crypto ETF issuers and regulators in Hong Kong actively engage
Vranjes added that one potential scenario that could play out is one in which “accredited investors” would be allowed to participate in spot staking of Ethereum ETFs before the rest of the market. Conversations with Crypto ETF Issuers and Regulators Hong Kong Efforts are underway to come up with such a solution, Vranjes said.
“We’re optimistic because of the level of discussion,” Blockdaemon’s boss told The Block. “I think we’re closer to an announcement than further away at this point.”
Hong Kong Ethereum ETFs lag behind US counterparts
There has been a lot of hype surrounding the launch of Crypto ETFs in Hong Kong. However, their post-launch performance has been 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 collective trading volumes recorded by the investment products in each region on September 16. The three Hong Kong spot Ethereum ETFs recorded a total trading volume of $390,000 with zero flows.
Cryptocurrency Market Update (September 19)
– FOMC delivers 50bps interest rate cut
– Hong Kong may approve Ethereum staking for local spot ETFs
– US Spot Bitcoin ETFs saw $52.8 million in net outflows yesterday— Market Meditations (@MrktMeditations) September 19, 2024
Meanwhile, the nine spot Ethereum ETFs in the United States recorded trading volumes of $129 million and net inflows of $9.5 million on the same day, according to data from SosoValue.
But approving staking for spot Ethereum ETFs in Hong Kong would give the city’s investment products a competitive edge, as the U.S. Securities and Exchange Commission (SEC) has not authorized U.S. ETH ETFs to offer the feature.
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- Staking Rewards – pepeunchained.com
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