According to ChainCatcher, Fiona Choi, Executive Director of Investment Products at the Hong Kong Securities and Futures Commission (SFC), stated today at the Hong Kong Web 3 Carnival that the SFC will issue a circular today, allowing licensed virtual asset trading platforms to provide staking services, including staking for virtual asset spot ETFs.
Staking allows investors to lock their virtual assets to support blockchain networks and earn rewards, but due to potential risks, the SFC will implement additional safeguards, including requiring licensed platforms to custody staked virtual assets and setting caps on the proportion of stakable virtual asset spot ETFs to manage liquidity risks.
Choi also mentioned that the Hong Kong SFC is expanding the range of eligible virtual asset underlying assets. Initially, virtual asset spot ETFs primarily focused on Bitcoin and Ethereum, but now more virtual assets have met the conditions for retail trading on licensed platforms, paving the way for ETF product diversification, such as a single ETF tracking a basket of virtual assets.
