The Hong Kong SFC is considering allowing Ether shares to be traded to ETF issuers

Hong Kong's Securities and Futures Commission (SFC) is reportedly considering adding Ether (ETH) stock options to its ETH exchange-traded fund (ETF) issuers.

According to a report published in Bloomberg, the financial regulator in Hong Kong is considering whether ETH ETF issuers in the country will be allowed to hold Ether (ETH) and earn income. Hong Kong approved a Bitcoin (BTC) ETF earlier this year, more than three months after the United States approved 10 spot ETFs.

The SFC has held discussions with the country's crypto ETF issuers about offering staking services through licensed platforms after making proposals in recent weeks.

The financial regulator is currently only discussing the issue, and there is no specific time limit for implementation, according to Bloomberg.

The SFC's action is contrary to the policy adopted by the US Securities and Exchange Commission (SEC), which treats services as investment contracts and violates securities laws.

This is evident in the improvements made by major financial institutions applying for the spot ETH ETF. For example, Fidelity recently removed the S1 file inventory.

Crypto staking allows tokens with proof-of-service to lock their crypto tokens for a certain period of time. In exchange for crypto staking, traders will receive a percentage of the accumulated tokens in return for the reward. There are many third-party staking services that allow users to stake their tokens.

Related: Crypto insiders worried and divided as spot Ether ETF decision day looms

Last year, the US SEC forced them to shut down stock services in the United States, such as Kraken, deeming the services unsafe.

Coinbase, on the other hand, is fighting the SEC's security position on staking and, on March 20, published a “Petition for Rulemaking”, explaining that it is not a security in the main staking, as it does not include financial investment, and is not an opportunity cost investment.

Hong Kong has emerged as a growing hub for crypto service providers by 2024, thanks to a number of pro-crypto regulations.

It also became the first country to approve an ETH ETF ahead of the United States. However, following its launch last month, the response was lukewarm. This decision to allow shareholding may bring a new flow of investment in the country's EFF.

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