Huaxia Ventures into Ether ETF Staking: Hong Kong’s Latest Crypto Revolution

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Ah, Huaxia Fund—an entity whose ambition seems only matched by its timing—has decided to grace us with yet another marvel in the world of finance. It’s about to roll out staking services on its Ether exchange-traded fund (ETF). This makes them the second such venture in Hong Kong, as if the first one wasn’t enough to keep us all on the edge of our seats. OSL Digital Services (OSL) is coming along for the ride, bringing its custody and staking infrastructure, just in case anyone was worried about the technicalities. A smooth operator, indeed.

But hold on, let’s not get ahead of ourselves. The much-anticipated staking feature will officially arrive on May 15—mark your calendars, because it promises to transform the ETF from a humble, passive investment vehicle into what could only be described as an “active participant” in the Ethereum ecosystem. You can almost hear the Ethereum blockchain cheering in the background. According to the official announcement from OSL, this is going to be quite the leap forward. Huaxia Fund, a subsidiary of China Asset Management (ChinaAMC), originally launched its Ether ETF in April 2024. But now? Oh, things are about to get exciting.

Why this sudden shift, you ask? Well, let’s not forget that the Hong Kong Securities and Futures Commission (SFC) updated its rules on April 7 to allow centralized exchanges to offer crypto staking. In a world where every city is desperately trying to win the title of “Web3 Capital,” Hong Kong is clearly looking to secure a prime spot. The SFC, in a rare moment of enthusiasm, acknowledged the potential perks of staking—namely, boosting blockchain security and letting investors watch their wallets grow with a little yield.

For those still unsure about what staking actually means (though if you don’t know by now, where have you been?), it’s the process of locking up crypto tokens to help support blockchain networks. And as a reward for your generosity, you get more tokens. Think of it as a long-term commitment in exchange for crypto dividends. Sounds easy enough, right?

Just to stir the pot a little more, on April 10, Bosera HashKey became the first approved staking provider under the new rule. Their Ether ETF will bask in the glory of compound growth as yield from staked Ether gets reinvested. A delightful way to watch money multiply, one could say.

And before you ask, Coinbase is reporting that current ETH stakers are receiving a solid 2.14% return on their holdings, as of a 365-day average. Not bad, not bad at all.

Hong Kong’s Bold Push to Become Web3 Hub

Ah, but the real story here isn’t just staking, is it? No, no. The real spectacle is that Hong Kong is positioning itself as a haven for Web3—becoming the global stage where innovation meets regulation. In the United States, the topic of staking for Ether ETFs has been a point of heated debate. Who could forget Bernstein Research’s prediction in December 2024, which foresaw a glorious future where the crypto-friendly Trump administration would bless us with staking approval? And while the SEC has yet to bite, CBOE and the NYSE have already filed their rule-change requests. Always playing catch-up, aren’t they?

BlackRock has chimed in too, with some rather cheeky comments about ETH ETFs being “successful,” but they would be even better with staking. Who knew that even the big dogs wanted more yield? Staking is seen as a clever strategy to lure in investors who might otherwise balk at the idea of simply holding onto an ETF. After all, who can resist the allure of more money?

As for Hong Kong’s SFC, it seems to have caught on to this little secret. Chen Wu, the CEO of Hong Kong-based crypto exchange Ex.io, shared some rather optimistic thoughts with CryptoMoon: “The SFC’s announcement signals that more doors are opening—not just for staking, but for a wider range of Web3 products to take shape under a regulated and trusted framework.” In other words, Hong Kong is making a very calculated play to become the Web3 capital of the world. Talk about ambition!

Since 2022, Hong Kong’s blockchain sector has seen a 250% growth, and the city’s fintech market is expected to surpass $600 billion by 2032. The Hong Kong government is playing its cards right with proactive policies that have made it a welcoming place for cryptocurrency companies. Compare that to the less-than-friendly stances other governments take, and it’s no wonder Hong Kong is emerging as a leader in the space.

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2025-04-17 22:00