Thu, September 19, 2024 at 12:25

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about Hong Kong's potential introduction of staking capabilities to Ethereum (ETH) ETFs.

  • 
• Annie

  • Oh, that sounds interesting!😊 Can you tell me more about it?

  
• 

  Kang-hoon

  • Certainly.

  • According to media reports on Monday, Blockdaemon Vice President Andrew Brandes mentioned that Hong Kong regulators might approve this move later this year.

• Annie

  • Later this year?

  • So, it's not confirmed yet?

  
• ADward

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• 

  Kang-hoon

  • Correct.

  • While no final decision has been made, discussions are progressing positively.

  • Brandes spoke about this at the Token2049 conference, emphasizing that they are working with ETF issuers and regulators to develop a staking solution.

• Annie

  • Token2049 conference?

  • That's quite a significant platform.

  • What did he say about the approval process?

  
• 

  Kang-hoon

  • He mentioned that the regulator could approve staking 'within certain structures and boundaries,' likely starting with accredited investors first.

  • This phased approach seems prudent.

• Annie

  • I see.

  • So, this idea isn't entirely new, right?

  
• 

  Kang-hoon

  • Correct.

  • Yat Siu, chairman of Animoca Brands, noted in June that Hong Kong was actively exploring this option.

  • The main reason is the 3-4% staking returns that investors are currently missing out on.

• Annie

  • 3-4% returns?

  • That's quite substantial!😲

  
• 

  Kang-hoon

  • Indeed.

  • Glenn Wu, Head of Sales for Asia Pacific at BlockDemon, also highlighted that the lack of staking in existing ETFs has been a major drawback for many Ethereum ETF investors.

• Annie

  • So, this could really attract new investors, right?

  
• 

  Kang-hoon

  • Absolutely.

  • Experts believe that introducing staking will attract new investors and help close the performance gap with the US.

  • Good communication and cooperation between ETF issuers and regulators are key to this approval.

• Annie

  • That's promising!

  • How has the market reacted so far?

  
• 

  Kang-hoon

  • Interestingly, the Hong Kong Bitcoin ETF has recorded the largest inflows in a month.

  • This indicates growing investor confidence and interest.

  • 
• Annie

  • Wow, that's impressive!

  • So, do you think this news is a positive development for the market?

  
• 

  Kang-hoon

  • Yes, I believe it is a positive development.

  • The introduction of staking capabilities to Ethereum ETFs could significantly enhance their attractiveness and performance, making Hong Kong a more competitive player in the global crypto market.

• Annie

  • Thank you, Kang-hoon.

  • This has been very insightful!👏

  
• 

  Kang-hoon

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.