Spot Crypto ETF Staking: Hong Kong’s Regulatory Progress and Market Impact

Spot Crypto ETFs in Hong Kong: Upcoming Changes and Competitive Advantages

Spot Crypto ETF Staking – Andrew Vranjes, VP at Blockdaemon, revealed that the company is collaborating closely with spot crypto ETF issuers in Hong Kong to develop viable staking solutions. Vranjes mentioned that there is a possibility for these staking features to receive approval this year, provided they meet certain conditions.

Progress in Regulatory Discussions

During an interview with The Block at Token2049 in Singapore, Vranjes detailed that Blockdaemon is engaged in extensive discussions with local regulators to finalize the staking solutions. The team has made substantial progress, and regulators may approve the feature “within certain constructs and boundaries,” he noted.

Potential Market Models

Vranjes speculated that the staking feature might initially be available to accredited investors, with the possibility of broader access over time. He expressed optimism about the progress of discussions and the level of engagement with both clients and regulators.

Current Performance of Spot Crypto ETFs

Despite early enthusiasm, the performance of spot crypto ETFs in Hong Kong has lagged behind their U.S. counterparts. On Monday, the total trading volume for three spot ether ETFs in Hong Kong was $390,000 with no daily flows, while nine ETFs in the U.S. saw a trading volume of $129 million and $9.5 million in net daily outflows, according to SosoValue data.

Competitive Advantage of Staking Features

Vranjes suggested that incorporating staking features into spot Ethereum ETFs could offer a competitive edge, potentially enhancing their appeal. He indicated that it would not be surprising if Hong Kong announced Ethereum staking for ETFs before the U.S.

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