Hong Kong Takes the Lead: Spot Ethereum ETF Staking Approved
While U.S. regulators continue to debate staking provisions, Hong Kong’s Securities and Futures Commission (SFC) has moved swiftly—on April 10, 2025 it greenlit staking services for spot Ethereum (ETH) ETFs, with HashKey Exchange rolling out the first offering. This pioneering decision not only underscores Hong Kong’s forward‑looking Web3 regulatory approach but also cements its status as the Asia‑Pacific hub for digital‑asset innovation. It marks a significant step in the fusion of traditional finance (TradFi) and decentralized finance (DeFi).
Approval Details
On April 10, 2025, the SFC officially authorized HashKey Exchange to provide staking services for its spot ETH ETF, making it the first platform licensed under the new staking guidelines issued just three days earlier on April 7, 2025. Under this updated circular, licensed virtual asset spot ETFs are permitted to stake up to 30% of their ETH holdings, enabling regulated fund managers and exchanges to expand staking operations within a robust compliance framework.
Early Adopters
Besides HashKey Exchange, several other market participants have moved swiftly:
- Bosera HashKey Ether ETF has been granted permission to allocate up to 30% of its holdings into ETH staking, effectively converting a passive ETF into an active yield‑earning vehicle.
- China Asset Management (Hong Kong) announced a partnership with OSL Digital Securities, planning to launch its second staking‑enabled spot ETH ETF on May 15, 2025, further diversifying investor options.
Why This Matters
- Strengthening Hong Kong’s Web3 Hub
By swiftly implementing its Virtual Asset Development Roadmap and enabling regulated staking, Hong Kong reinforces its position as a premier digital asset centre in the Asia‑Pacific region. - Driving TradFi–DeFi Integration
The ability for institutional investors to participate in Ethereum’s proof‑of‑stake consensus via regulated ETFs bridges the gap between legacy financial systems and blockchain‑native yield strategies. - Enhancing ETH’s Institutional Appeal
With projected annual staking yields of 2–3%, these ETFs offer a compelling, yield‑bearing option for both institutional and retail investors, while simultaneously bolstering network security.
As Hong Kong leads this global first, market participants and regulators worldwide will closely observe subsequent developments. 852Web3 will continue to monitor policy updates and market reactions, delivering in‑depth analyses and insights to our Web3 community. Together with industry partners, we look forward to driving the next chapter of Hong Kong’s digital asset innovation.
