Ethereum ETF

The Hong Kong Securities and Futures Commission has approved virtual asset staking, and HashKey Exchange has been authorized to launch Ethereum ETF staking services

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) officially announced on April 7 that it has issued regulatory guidelines regarding the provision of staking services to licensed virtual asset trading platforms, as well as guidelines for SFC-recognized funds investing in virtual assets (virtual asset funds) concerning their participation in staking activities. The virtual asset exchange HashKey Exchange received approval from the Hong Kong SFC on April 10 to become one of the first exchanges in Hong Kong authorized to provide staking services.The SFC stated in the announcement, "The SFC recognizes the potential benefits of staking in enhancing the security of blockchain networks and allowing investors to earn returns from virtual assets in a regulated market environment."In February this year, the SFC released the "Virtual Asset Development Roadmap" ("A-S-P-I-Re" framework) and proposed to consider expanding the range of virtual asset products under a regulatory framework, including providing staking, leverage, and lending services under clear guidelines.Terence Pu, Managing Director of HashKey Exchange, stated, "HashKey Exchange has built a staking service system that meets regulatory requirements, taking the lead in providing ETH staking services for spot ETFs, and is actively promoting staking services for all customers.This service relies on HashKey Cloud's excellent node operation capabilities to provide users with secure and compliant staking services. In the near future, investors will not only be able to hold Ethereum ETFs to earn staking returns but also hold ETH directly and earn additional returns through our staking services."

BlackRock Digital Assets Head: Approval for Staking Could Be a "Huge Leap" for Ethereum ETF

ChainCatcher news, BlackRock's head of digital assets, Robert Mitchnick, stated that the demand for Ethereum ETFs has been lukewarm since their launch last July, but the situation could change if some regulatory issues hindering their development can be "resolved." Mitchnick said at the digital assets summit held in New York City on Thursday that the general perception is that the success of Ethereum ETFs seems "lackluster" compared to the explosive growth of Bitcoin funds. While he believes this is a "misunderstanding," he also acknowledged that the inability to earn staking rewards in the funds could be one of the limiting factors.He said, "Clearly, the potential evolution of Ethereum ETFs has entered the next phase. It has proven that ETFs are a very attractive tool through which many different types of investors can hold Bitcoin. Undoubtedly, for Ethereum, without staking, the ETF appears less than perfect. Staking rewards are an important way to earn investment returns in this space, and none of the Ethereum ETFs launched included staking."Staking is a way for investors to earn passive income by locking tokens on the network for a period of time. This allows them to "put their crypto assets to work" if they do not plan to sell their cryptocurrencies soon. However, Mitchnick does not expect a simple solution.He explained, "This is not a particularly simple issue. It's not as if the U.S. government approves a certain proposal and then it's 'done,' and everyone can get started. There are still many quite complex challenges to overcome to resolve this issue, but if these problems can be solved, we will see a leap in activity around these products."
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