Following the US Securities and Exchange Commission (SEC) approving multiple Bitcoin spot ETFs at the beginning of January this year, the Hong Kong Securities and Futures Commission also approved six Bitcoin and Ethereum spot ETFs from three major fund managers (Bosera, China Asset Management, and Harvest Fund) in mid-April.
However, compared to the US, the performance of Bitcoin and Ethereum spot ETFs in Hong Kong has not been impressive since their launch, with first-day trading volumes reaching only HKD 87.58 million, less than 1% of the USD 4.6 billion trading volume of the US Bitcoin spot ETFs on their launch day. Additionally, with the SEC having approved the preliminary application for Ethereum spot ETFs last month, market expectations for Hong Kong's cryptocurrency ETFs have further declined.
Yat Siu: Hong Kong Expected to Launch Staking Feature for Ethereum Spot ETFs This Year However, just yesterday (7th), Yat Siu, Chairman of the Hong Kong-based blockchain gaming giant Animoca Brands, stated that Ethereum spot ETF issuers in Hong Kong are currently working to incorporate staking features into the Ethereum spot ETFs and are likely to receive approval from the authorities this year:
"Hong Kong is currently discussing the plan to include staking in Ethereum spot ETFs, prioritizing it over the US. The chance of approval is almost inevitable."
"As for the timeline, I am optimistic that this will be achieved within a year."
Additionally, Livio Weng, CEO of licensed Hong Kong exchange HashKey, also admitted:
"We have developed a plan aimed at generating more returns without adding risks. We hope to advance this plan in a compliant and controllable manner."
Meanwhile, Glenn Woo, Head of Sales for APAC at blockchain infrastructure provider Blockdaemon, revealed that they are currently in discussions with Hong Kong ETF issuers and custodians to explore the possibility of providing staking services for ETFs:
"Based on my discussions with issuers and custodians this week and last week, we are all positive about launching staking services for Ethereum spot ETFs."
"Industry participants hope to get approval as soon as possible this year, as it is the most significant missing piece, and consensus has been reached."
According to The Block's data, during this week's trading, Hong Kong's Bitcoin spot ETFs accumulated a trading volume of USD 10.28 million from Tuesday to Thursday, while the US achieved a trading volume of USD 1.42 billion on Thursday alone, showing a significant gap between the two markets.
Regarding this situation, Yat Siu commented that introducing staking features into Ethereum spot ETFs might bring more funds to Hong Kong's ETF market, potentially changing its sluggish state:
"The possibility of staking rewards might become a competitive advantage for Hong Kong's Ethereum spot ETFs compared to US ETFs, as the US SEC has clearly stated that it will not support this feature. Staking might be the most significant differentiating factor for Hong Kong compared to other regions."
Glenn Woo also shares this view, believing:
"The lack of staking features has hindered many potential buyers of Ethereum spot ETFs, presenting a significant opportunity for Hong Kong."
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