Hong Kong’s SFC approves staking-enabled Ethereum ETFs, boosting regulated crypto investment.
ChinaAMC and OSL’s Ether ETF lets investors earn staking rewards passively.
Part of Hong Kong’s ASPIRe roadmap to lead Asia’s digital asset ecosystem.
Hong Kong is making itself as Asia’s digital asset hub. The Securities and Futures Commission (SFC) has greenlit staking services, allowing China Asset Management (ChinaAMC) to launch an Ethereum ETF with staking by May 15. This is a significant move towards institutional crypto investment being made more compliant and accessible.
The ETF is constructed in partnership with OSL Digital Securities. The first SFC-licensed and SFC-insured digital asset trading platform in Hong Kong crypto. OSL will provide the custody service through insured cold storage, and Ethereum validator nodes will be run by staking infrastructure company Kiln.
The partnership provides for a clear division of roles: OSL handles asset security and the redistribution of rewards, while Kiln oversees validation. “This lowers the barrier to entry for Ethereum staking,” said ChinaAMC Head of Digital Assets Thomas Zhu. “Investors will benefit through staking rewards integrated into the ETF’s net asset value, turning passive holdings into yielding assets.”
This follows the footsteps of Bosera International and HashKey Capital, which are also launching their own staking-enabled fund on April 25. These are some of the steps part of a broader movement that has been prompted by Hong Kong’s new “ASPIRe” roadmap to build a strong virtual asset ecosystem focused on Access, Safeguards, Products, Infrastructure, and Relationships.
The ETF provides investors an easy, safe means of entering Ethereum staking without the technological complexity. While returns will be marginally lowered due to costs, the product improves liquidity and makes tax reporting easier—best for mainstream investors entering crypto.
Hong Kong’s forward-thinking approach to regulation betrays its intentions to be a leader in digital asset innovation. And, by example, may dictate a similar response from other international financial centers worldwide, promoting wholesome crypto growth.
Highlighted Crypto News Today
Pump.Fun Co-Founder Criticizes Base’s Token Launch