Animoca Brands Chairman Yat Siu stated in an interview yesterday that Hong Kong’s Ethereum spot ETF issuers are currently working to incorporate staking into Ethereum spot ETFs, with a high probability of approval. Can this change the sluggish situation in the Hong Kong ETF market?
Following the approval of multiple Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC) in early January this year, the Hong Kong Securities and Futures Commission also approved applications for six Bitcoin and Ethereum spot ETFs from Bosera, Huaxia, and Cathay Pacific in mid-April.
However, compared to the United States, the performance of Bitcoin and Ethereum spot ETFs in Hong Kong has not been impressive since their listing, with a trading volume of only 87.58 million Hong Kong dollars on the first day, less than 1% of the $4.6 billion trading volume on the first day of the Bitcoin spot ETF listing in the United States. Furthermore, with the SEC having already approved the preliminary application for an Ethereum spot ETF last month, expectations for the Hong Kong cryptocurrency ETF market have further diminished.
Yat Siu: Hong Kong is expected to introduce staking into Ethereum spot ETFs this year
However, just yesterday, Yat Siu, Chairman of Animoca Brands, a blockchain gaming company headquartered in Hong Kong, stated that Ethereum spot ETF issuers in Hong Kong are currently working to incorporate staking into Ethereum spot ETFs and are expected to obtain approval from the authorities this year.
Additionally, Livio Weng, CEO of licensed exchange HashKey in Hong Kong, admitted:
Meanwhile, Glenn Woo, APAC Sales Director of blockchain infrastructure provider Blockdaemon, revealed that they are currently in discussions with ETF issuers and custodians in Hong Kong to explore the possibility of providing staking services for ETFs.
Can staking bring a turning point to Hong Kong ETFs?
According to data from The Block, the Bitcoin spot ETF in Hong Kong accumulated a trading volume of $10.28 million from Tuesday to Thursday this week, while the United States obtained a trading volume of $1.42 billion on Thursday alone, showing a significant gap between the two.
Yat Siu believes that introducing staking into Ethereum spot ETFs could bring more capital to the ETF market in Hong Kong to change its current sluggish state. Glenn Woo holds a similar view, stating:
Further reading:
Opinion: How much impact does the approval of Ethereum spot ETF by the SEC have on the cryptocurrency market?
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