The Cryptocurrency Exchange Hashkey has received approval from Hong Kong regulators to offer staking services, which potentially expand the institutional appeal of proof-of-stake investments such as Spot Ether Exchange-Traded Funds (ETF).
Hashkey was given a approved April 10 after the Hong Kong Securities and Futures Commission (SFC) provided guidance on regulatory staking services to licensed Virtual Asset Trading Platform (VATP) and authorized funds, the company was revealed on social media.
Hashkey said it became “one of the first” Hong Kong’s regular exchange to offer staking services.
Source: Hashkey Group
Approval was granted after the China Securities Regulatory Commission (CSRC) identified the potential benefits of staking crypto services, the SFC said.
The CSRC “is aware of the potential benefits of staking in the security of blockchain networks and allowing investors to earn returns from virtual ownership in a regulated market environment,” the SFC said, according to a translated version of the announcement that appeared at the Asian media outlet Panews.
Related: Crypto VCs are ‘especially bullish’ in DEPIN, RWWA – Hashkey Capital
Topped with eth staking
SFC approved means Hashkey can take the lead in offering staking services for Ether spot (Eth) ETFs, according to the managing director of Exchange, Terence Pu.
“In the near future, investors will not only be able to handle ETFs to gain staking income but also hold ETH directly and earn more revenue through our staking services,” Hu said in a translated version of his statement.
Hong Kong approved Its first ether and bitcoin (itsBtc) ETFs in April last year, providing access to institutional investors in a In-kind Subscription model For digital assets.
Hong Kong preceded the curve to allow ETF investors to earn a passive produce in their digital assets. In the United States, the Securities and Exchange Commission (SEC) Green-lighted spots ether etf Last year but did not allow staking techniques to include.
For many investors in the United States, staking is the missing link that can make ETF-based ETFs more attractive to institutional investors.
In the US president’s election Donald Trump and the installation of a pro-crypto sec chair, Investors are growing confident Staking services will come to the US Ether ETF in the near future.
Source: James Seyyfart
Based on Bloomberg’s potential timeline James Seyffart, approval can be provided early in May.
Magazine: ‘Hong Kong’s FTX’ victims won the lawsuit, banks Bash Stablecoins: Asia Express
