Huaxia Fund to Add Staking to Ether ETF in Hong Kong

Huaxia Fund will Kickstart staking for its Ether exchange-traded fund (ETF) on 15th of May, making it the second Ether ETF in Hong Kong to do so. OSL Digital Services will provide the technical support and handle the storage of the digital assets.

This move changes the fund from just holding assets to becoming more active in the Ethereum network. The decision follows new rules from Hong Kong’s Securities and Futures Commission (SFC), aimed at making the city a leader in Web3.

Staking Brings Extra Income for Investors

Staking means locking up cryptocurrency to help keep a blockchain running and safe. In return, users earn rewards, usually more crypto. To this end, with the new rules, companies like Huaxia and Bosera HashKey can now offer staking in their Ether ETFs. Bosera HashKey was the first to be approved, and it plans to reinvest the staking rewards for more growth.

Coinbase says Ethereum stakers now earn around 2.14% yearly. This makes staking a good option for investors looking for steady returns in a legal and trusted way. The SFC believes staking helps both blockchain security and investor profits.

Hong Kong Supports Web3 Growth

Hong Kong is also growing fast in fintech and blockchain. The blockchain sector has grown by 250% since 2022. Experts say the city’s fintech market could hit $600 billion by 2032. The SFC is encouraging more Web3 projects under clear rules, unlike other places that are more strict.

Big firms like BlackRock say ETFs are better with staking. While the U.S. is still waiting for rule changes, Hong Kong is moving ahead quickly. As Chen Wu from Ex.io says, the city is opening new doors for crypto and Web3 under a safe and strong system.

In order to place winning trades with us via Bybit, you can open an account here.