Hong Kong’s Securities and Futures Commission (SFC) is said to be contemplating the inclusion of an Ether (ETH) staking option for spot ETH exchange-traded fund (ETF) issuers. A report from Bloomberg states that the financial regulator in Hong Kong is considering whether ETH ETF issuers in the country should be permitted to stake Ether and generate passive income. Earlier this year, Hong Kong approved a Bitcoin (BTC) ETF, more than three months after the United States approved 10 spot ETFs. The SFC reportedly engaged in discussions with the country’s crypto ETF issuers about offering staking services through licensed platforms after receiving proposals in recent weeks. Bloomberg reports that the financial regulator is currently only in the discussion phase, and there is no fixed timeline for implementation. This move by the SFC stands in contrast to the policy adopted by the U.S. Securities and Exchange Commission (SEC), which views staking services as an investment contract and a violation of securities laws. Major financial institutions seeking spot ETH ETFs have recently made amendments to remove staking, such as Fidelity. Staking services in the crypto industry allow tokenholders to lock their tokens for a specific period and earn rewards in return. While the U.S. SEC considers staking services as securities, Hong Kong’s approach could attract new investment into the country’s ETFs.
Hong Kong SFC Contemplates Permitting ETF Issuers to Engage in Ether Staking