Bloomberg quoted informed sources as saying that the Securities and Futures Commission (SFC) of Hong Kong has been discussing with Ether ETF issuers about providing Ether collateral services through licensed platforms. This could potentially unlock a removed passive income source for ETF issuers.
According to insiders, these discussions are still ongoing, and there is currently no clear decision timetable. If approved, the collateral income may enhance the demand for Hong Kong Ether spot ETFs, as ETF investors can earn passive income from participating in Ethereum network verification while holding the ETF. According to data from stakingrewards, the current annual yield for Ethereum staking is approximately 3.27%.
Serra Wei, CEO of blockchain financial services company Aegis Custody, stated that the discussions between Hong Kong ETF issuers and regulatory authorities regarding Ether collateral have always been healthy. He believes that this would align with local regulatory systems, and considers the incorporation of collateral into Hong Kong Ether spot ETFs as an important milestone, even though he did not participate in the discussions with the Hong Kong Securities and Futures Commission.
In comparison, while the U.S. Securities and Exchange Commission (SEC) recently took an important step forward in Ether spot ETFs, U.S. issuers such as Fidelity Investments and Ark Investment have removed their plans to add Ether collateral services to their proposed ETFs from their application documents before approval.
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