##ETHETFsApproved :latest Hong Kong ETH ETF news .
- *Hong Kong approves Ethereum ETF staking*: Hong Kong is considering allowing staking for exchange-traded funds (ETFs) investing directly in ether. The Securities and Futures Commission (SFC) of Hong Kong is engaging the city’s cryptocurrency ETF issuers about providing staking services through licensed platforms. This potential regulatory change could open a new source of passive income for investors, positioning Hong Kong ahead of the US, where such offering is restricted.
- *Staking offers passive income*: Staking offers investors a way to earn passive income by locking tokens on the Ethereum network to help validate transactions, currently yielding about 4% annually in additional coins.
- *Competitive advantage*: If the SFC approves the staking yields, it could significantly enhance the attractiveness of Hong Kong’s spot-crypto ETFs, which have experienced moderate demand since their launch in April. This move could give Hong Kong a competitive edge over the US, where such offering is restricted.
- *Hong Kong as a digital asset hub*: Hong Kong is actively positioning itself as a digital asset hub, competing with cities like Singapore and Dubai. This follows the implementation of a dedicated regulatory regime last year aimed at rejuvenating the city’s status as a financial center after a period of political unrest.
- *ETFs tied to the price of ether*: The US SEC approved applications from major exchanges like Nasdaq, CBOE, and the NYSE to list ETFs tied to the price of ether. This milestone potentially paves the way for the launch of these funds later in the year, pending regulatory formalities and investor disclosures.
