Bloomberg, citing people familiar with the matter, reported that the Hong Kong Securities and Futures Commission (SFC) has held discussions with Ethereum ETF issuers about providing Ethereum pledge services through licensed platforms, which may unlock a type of security for ETF issuers. Passive income source removed.

Those discussions are ongoing and there is no clear timetable for a decision, according to people familiar with the matter. If the proposal is approved, staking returns could bolster demand for a Hong Kong Ethereum spot ETF, as ETF investors can earn passive income from participating in Ethereum network validation while holding the ETF. According to data from stakingrewards, Ethereum staking currently yields an annual return of approximately 3.27%.

Serra Wei, CEO of blockchain financial services company Aegis Custody, said that discussions between Hong Kong ETF issuers and regulators about ether pledges have been healthy, adding that this would be in line with the local regulatory system. , Serra Wei, who did not participate in the discussions with the Hong Kong Securities Regulatory Commission, believes that the inclusion of pledges in Ethereum spot ETFs will be an important milestone for Hong Kong.

In contrast, although the U.S. Securities and Exchange Commission (SEC) has recently taken an important step towards Ethereum spot ETFs, U.S. issuers including Fidelity Investments and Ark Investments have obtained approval from the application documents. Plans to add ether staking services for its proposed ETF have been removed.​

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