Gate Research has just released its latest report: “Hong Kong SFC Introduces Ethereum Spot ETF Staking Services, Historic Breakthrough for Web3 Industry“. The report analyzes the Hong Kong Securities and Futures Commission’s “Circular on Virtual Asset Trading Platforms Providing Staking Services” and the pioneering Ethereum ETF staking services launched by Bosera Funds and China Asset Management. It covers precise calculations of ETH staking returns, changes in capital inflows to Hong Kong’s Ethereum ETFs following the introduction of staking services, and a forward-looking perspective on Hong Kong’s deep involvement in Ethereum network community governance and RWA industry development. The report comprehensively examines the policy background and the profound impact of staking services on the Web3 industry, unveiling the historic opportunities and transformations they bring.

Key Takeaways：

• Policy Background: On April 7, 2025, during the Hong Kong Web3 Carnival, the Hong Kong Securities and Futures Commission (SFC) issued the Circular on Virtual Asset Trading Platforms Providing Staking Services. Following the circular, China Asset Management and Bosera Funds, which had already issued Ethereum spot ETFs, swiftly responded. Compared to the U.S. SEC, the Hong Kong SFC approved staking services for Ethereum spot ETFs earlier, marking a milestone for Hong Kong’s ambition to become Asia’s Web3 hub. This reflects not only the in-depth research by Hong Kong’s cryptocurrency regulators on on-chain revenue distribution mechanisms but also the proactive and progressive stance of the Hong Kong government toward cryptocurrency policies.
• The Return of ETH Staking: As of May 2025, the annual percentage yield (APY) for ETH staking was 3.07%. From a financial product perspective, ETH staking does not offer high returns and is less competitive compared to SOL staking yields. However, Ethereum ETF staking enhances investor returns without increasing operational complexity, representing a landmark advancement in financial services during the transition from Web2 to Web3. For traditional financial investors, staking services can be viewed as providing an additional ~3% dividend on top of token assets.
• ETF Staking is a Long-tail Positive Policy: After the launch of staking services in April 2025, Hong Kong’s Ethereum ETF subscriptions did not see significant growth. However, in May, as ETH token prices rose from $1,500 to $2,500, Hong Kong’s Ethereum ETFs recorded net inflows of $610,000 and $700,000 on May 12 and May 13, respectively. Overall, Hong Kong’s approval of staking services for virtual asset ETFs is a long-tail positive policy, but it has not significantly increased assets under management in the short term. This is mainly due to limited market liquidity in Hong Kong, challenges for international investors in registering, and limited understanding of the “staking” concept among traditional investors.
• The Prospects of Hong Kong’s Ethereum Ecosystem: As Asia’s financial hub, Hong Kong’s Economic Bureau launched the Ensemble Sandbox Project in August 2024 to promote tokenization applications. The strong policy support and rapid project implementation highlight Hong Kong’s emphasis on the Real-World Asset (RWA) sector. Ethereum currently hosts the highest total value of RWA assets among public blockchains. The introduction of staking services in Hong Kong may signal a broader vision, potentially indicating deeper participation in Ethereum network governance to advance the RWA sector, a key focus of policy development.

Gate Research is a comprehensive blockchain and cryptocurrency research platform that provides readers with in-depth content, including technical analysis, trending insights, market reviews, industry research, trend forecasts, and macroeconomic policy analysis.

Disclaimer
This content does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decision. Please note that Gate may restrict or prohibit all or part of its services to users from restricted regions. For more information, please read the User Agreement: https://www.gate.com/user-agreement.

Gate Team
May 23, 2025

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