The Hong Kong Securities and Futures Commission (SFC) is inching closer to permitting the inclusion of staking in the basket for Ethereum ETFs. This approval comes after the SFC gave approval for spot Bitcoin and Ethereum ETFs—an awesome step in the cryptocurrency regulatory framework for the region. With such approvals, business can be transacted in those digital assets by both retail and institutional investors, but within a regulated environment.
The very consideration to allow staking for Ethereum ETFs would place investors into the position of earning rewards through participating in the network’s proof-of-stake consensus mechanism, further making such investment products attractive. All of which drills down to the very intention of the policy several years back to establish the region as the leading hub for cryptocurrency and blockchain innovation. That, in turn, resonates with the proactive position regulators have taken on these matters.
