According to a report by “The Block,” Yat Siu, the founder and chairman of blockchain gaming company Animoca Brands, stated that asset management institutions in Hong Kong are working towards introducing staking into their Ethereum spot ETF, hoping that the staking reward feature will be approved this year.
Siu, in an interview with The Block, said that Hong Kong is currently discussing the issue of Ethereum (ETH) staking, and the possibility of staking being approved in Asia before the United States is “almost an expected outcome.” Siu also mentioned that HashKey, which co-manages two spot ETFs in Hong Kong with Bosera Funds, is developing a proposal to introduce Ethereum staking. HashKey Exchange CEO Livio Weng stated, “We have devised a plan to earn rewards without increasing risk.” He added that more undisclosed details are currently under discussion.
As the U.S. Securities and Exchange Commission (SEC) has clearly stated that Ethereum spot ETFs are not allowed to have staking functionality (at least for now), the possibility of staking rewards could give similar fund products in Hong Kong a competitive advantage.
Related report: “Market experts: Ethereum spot ETF issuers canceling staking plans may reduce attractiveness of such funds.”