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.
FAQ
What is Blockdaemon’s role in the development of staking solutions for spot crypto ETFs in Hong Kong?
Blockdaemon’s VP, Andrew Vranjes, stated that Blockdaemon is working closely with spot crypto ETF issuers in Hong Kong to develop feasible staking solutions. The team is engaged in detailed discussions with local regulators to facilitate the approval of these features.
When might Hong Kong regulators approve staking features for spot Ethereum ETFs?
According to Andrew Vranjes, Hong Kong regulators might approve staking features for spot Ethereum ETFs this year, “within certain constructs and boundaries.” The approval timeline depends on ongoing discussions and regulatory considerations.
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