Hong Kong regulators are ethereum-staking-for-local-spot-etfs-this-year-says-blockdaemon-executive” target=”_blank” rel=”noopener nofollow”>reportedly close to approving staking features for spot ethereum exchange-traded funds (ETFs). This development comes as the region continues its efforts to establish itself as a crypto hub.
Andrew Vranjes, International Head and Vice President of Blockdaemon, recently spoke about this possible approval during an interview at Token2049 in Singapore.
Vranjes revealed that Blockdaemon has been actively working with spot issuers of crypto ETFs in Hong Kong to come up with staking solutions that align with regulatory requirements.
Progress on ethereum Spot ETFs in Hong Kong
Vranjes expressed optimism about the progress, indicating that regulators could allow betting within specific guidelines. He hinted that initial approval could be limited to certain categories of investors, such as accredited investors, before potentially expanding to a broader market.
“We are positive about the level of conversation,” Vranjes stated, noting that discussions between Blockdaemon, ETF issuers and regulators are ongoing, involving detailed documentation and regulatory scrutiny.
Vranjes revealed in particular that Blockdaemon is deeply involved in conversations with customers and regulators, exchanging comprehensive documents to ensure that proposed staking solutions meet regulatory standards.
He suggested that an official announcement on ethereum's bid for spot ETFs in Hong Kong could be imminent, emphasizing that the current phase involves meticulous planning and compliance checks.
“We are in that kind of detailed movement. I think at this point we are closer to the announcement than far away,” Vranjes said.
eth Spot ETF Performance So Far
Hong Kong crypto ETF spot flows lag far behind those in the US. For example, the combined trading volume of the three ethereum spot ETFs in Hong Kong amounted to $30,740 on Tuesday (September 17) , without daily flows being recorded.
By contrast, nine US eth ETFs recorded a combined trading volume of $176.26 million and daily net outflows of $15.11 million on the same day, according to SosoValue. eth-spot” target=”_blank” rel=”noopener nofollow”>data.
<blockquote class="twitter-tweet”>
ethereum ETF Tracker | 2024-09-17
Total daily net income: $15.11 million
Total traded value $176.26 million
Total net assets $6.41 billion
ETF market value ratio 2.27%
Net inflows/outflows for each ETF
eth +$2.77 million
ETHW$0
ETHA $0
ETHV$0
CETH $0
WOOL… pic.twitter.com/IXlCkAr2HI
– SoSoValue Research (@SoSoValue) twitter.com/SoSoValue/status/1836252936978169877?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener nofollow”>September 18, 2024
Vranjes suggested that Hong Kong could potentially approve ethereum participation in ETFs before the United States, noting that he would not be surprised by that.
If Hong Kong successfully implements the ethereum bet for spot ETFs, it could set a precedent and potentially influence other markets.
The United States, which currently has higher crypto ETF trading volumes, could face pressure to adopt similar measures. The move could also boost ethereum's position in the global market, offering investors additional ways to generate returns.
Featured image created with DALL-E, TradingView chart
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