Hong Kong May Approve Ethereum Staking for Spot ETFs This Year, Says Blockdaemon Executive

Andrew Vranjes, Senior Vice President and Head of International Business at Blockdaemon, said at the Token2049 event in Singapore that Hong Kong regulators may approve staking for Ethereum spot ETFs this year.

Vranjes said his team is working closely with ETF issuers in Hong Kong to discuss possible staking solutions with local regulators. He said the team has made progress and regulators may approve staking functions "within a specific structure and scope."

"Let's see how the market evolves. There might be a model where qualified investors and above have this option first. It might evolve in that direction, with gradual progress over time."

Vranjes explained that he is optimistic about potential approval because the Blockdaemon team is having "very deep conversations" with its clients and regulators, with both sides having exchanged "multiple documents."

"That level of rigor is underway. We are in the stage of pushing forward with details. I think we are getting closer to announcing it."

Blockdaemon is a blockchain infrastructure provider founded in 2017. It has over 400 institutional clients and is backed by investors including Goldman Sachs, JPMorgan, and Citi Ventures. Founder Konstantin Richter recently revealed that Blockdaemon may seek an initial public offering (IPO) in 2026.

While Hong Kong's cryptocurrency spot ETFs initially garnered attention, their performance has been underwhelming compared to the US market, with far less inflow of funds than their American counterparts. According to SosoValue data, the total trading volume of the three Hong Kong spot Ethereum ETFs on Monday was only $390,000, with zero net daily inflow, while the nine ETFs in the US had a trading volume of $129 million and a net daily outflow of $9.5 million. Many industry insiders have said that the potential staking function for Ethereum spot ETFs could be a game-changer, offering a competitive edge for these products.