Cryptocurrency exchange HashKey has received regulatory approval from the Hong Kong Securities and Futures Commission (SFC) to offer Ethereum (ETH) staking services, marking a major step in the city’s push to become a regulated digital asset hub. This makes HashKey one of the first licensed platforms globally to offer staking on spot Ether exchange-traded funds (ETFs).
The approval follows newly issued SFC guidance for Licensed Virtual Asset Trading Platforms (VATPs) and authorized funds, outlining clear standards for custody, investor protection, and risk management in staking operations. HashKey’s move is expected to significantly enhance the institutional attractiveness of ETH ETFs by enabling passive income through staking.
“In the near future, investors will not only be able to hold Ether ETFs to obtain staking income but also directly hold ETH and obtain additional income through our staking services,” said Terence Pu, Managing Director of HashKey, in a translated statement.
Hong Kong had approved its first Bitcoin and Ether ETFs in April 2024, allowing in-kind subscriptions for institutional investors. With this latest development, Hong Kong becomes the first major jurisdiction to enable staking rewards for ETF holders, putting it ahead of regions like the United States, where similar functionality is currently prohibited.
In the U.S., while the Securities and Exchange Commission (SEC) approved spot Ether ETFs last year, it did not allow staking strategies to be integrated. However, with the recent election of President Donald Trump and appointment of a pro-crypto SEC Chair, analysts like James Seyffart suggest staking-enabled ETFs could be approved as early as May 2025.
According to PANews, the SFC acknowledged that staking offers benefits such as improving blockchain security and allowing investors to earn yield in a regulated environment.
HashKey’s approval is expected to pave the way for more compliant staking opportunities in Asia, reinforcing Hong Kong’s status as a leader in regulated digital finance.
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