Breaking signal from China! The "Ethereum Staking" function will be introduced in the Hong Kong market. Industry bosses: It will happen as soon as the end of 2024

Andrew Vranjes, international head and vice president of the blockchain infrastructure platform Blockdaemon, revealed at TOKEN 2049 in Singapore that the Hong Kong Ethereum Spot ETF will introduce the Ethereum staking function as soon as the end of 2024. He said his team is working closely with Hong Kong issuers and discussing with regulators to develop feasible staking solutions.

Vranjes said the team has made progress and Hong Kong regulators may approve Ethereum staking functionality “within certain structures and boundaries.”

Source: The Block

Ethereum staking will bring more profits to investors. In addition to the increase in Ethereum itself, they can also obtain the return rate after staking. If the United States does not follow up on this feature, it means that the Hong Kong cryptocurrency spot ETF will have the opportunity to "overtake around the corner."

“Let’s see how the market develops, there may be a pattern and maybe accredited investors and above will have this option first. Maybe it will develop this way and gradually over time,” Vranjes added .

"We are positive about this because the level of dialogue is very high," he stressed.

Vranjes explained that the Blockdaemon team had very in-depth conversations with its customers and regulators, sending multiple pages of documents back and forth.

"This level of rigor is continuing," Vranjes said. "We are in the midst of this meticulous operation and I think we are now closer to announcing an outcome rather than further away."

While Hong Kong’s cryptocurrency spot ETF was initially popular, its performance has been relatively lackluster compared to its U.S. counterparts. Many industry insiders say the potential staking feature of Ethereum spot ETFs could give these products a competitive advantage.

Hong Kong’s cryptocurrency spot ETF flows pale in comparison to their U.S. counterparts.

For example, according to SosoValue data, the total trading volume of 3 Ethereum spot ETFs in Hong Kong at the beginning of this week was US$390,000 and zero daily flow, while the trading volume of 9 ETFs in the United States at the beginning of this week was US$129 million, with daily flows of US$129 million. Daily net outflows were $9.5 million.

“I wouldn’t be surprised if we saw an announcement about an Ethereum staking ETF in Hong Kong before the U.S., for example, it wouldn’t surprise me,” Vranjes said.

After the U.S. Securities and Futures Commission approved multiple Bitcoin spot ETFs on January 11 this year, the Hong Kong Securities Regulatory Commission also approved a total of 6 Bitcoin and Ethereum spot ETFs from three major funds, Boshi, ChinaAMC and Harvest, in mid-April. Apply.

The biggest difference with the United States is that Hong Kong allows the purchase of cryptocurrency spot ETFs in "physical objects". Investors can use Bitcoin and Ethereum to directly purchase spot ETFs. However, the United States can only purchase with assets such as U.S. dollars, and cannot directly use Bitcoin, Ethereum, etc. Ethereum enables transactions.