The highly anticipated staking feature for spot Ethereum exchange-traded funds (ETFs) could arrive in Hong Kong markets this year.
Blockdaemon Vice President Andrew Vranjes said in Singapore that they are collaborating with spot cryptocurrency ETF issuers in Hong Kong to provide viable staking solutions for Ethereum.
Vranjes added that he is in talks with local regulators to bring the staking feature. The Blockdaemon executive stated that they have reached an important milestone and that regulators can approve the staking feature under certain conditions and limits.
Vranjes said the talks had been positive so far, adding, “We will see how the market evolves. This option may initially be offered only to qualified investors and will expand over time.”
Competition with Ethereum could intensify
Unlike spot crypto ETFs in the US, crypto ETFs in Hong Kong have not fully met market expectations since they opened for trading.
For example, at the beginning of this week, the trading volume of three spot Ethereum ETFs in Hong Kong was $390,000, while the volume of nine Ethereum ETFs in the US was $129 million on the same day.
However, if Ethereum funds in Hong Kong were to include staking, unlike in the US, they could gain a competitive advantage.
Vranjes said it would not be a surprise if an approval announcement for Ethereum staking was made in Hong Kong before the US.
Stay tuned for new information.
