Hong Kong strengthens its position as a crypto-friendly region with the approval of an Ethereum spot ETF. The regulator, the Securities and Futures Commission (SFC), gave the green light to a fund that not only responds to price gains, but also automatically pays out strike rewards.
This makes it possible for investors to generate an extra return passive, without having to stop ETH through complex on-chain processes.
Ethereum strike now also accessible to investors via ETF
The new ETF will be launched on 15 May by China Asset Management (Chinaamc), in collaboration with OSL Digital Securities. Thanks to this collaboration, the ETF turns from a passive investment product into an active fund that participates directly in Ethereum’s proof-of-stake network.
According to Thomas Zhu, head of digital assets at Chinaamc, this considerably lowers the threshold for investors who want to benefit from Ethereum strike. Instead of managing a wallet, validator node or lock-up structure, the ETF controls the entire process-simple, safe and accessible.
Chinaamc is not the only party embracing this strategy. Earlier this month, Bosera International and Hashkey Capital also received green light from the SFC for a similar product. Their ETF with strike functionality is expected to be launched on 25 April.
New inflow can give Ethereum the much needed impulse
Institutional and traditional investors in particular would be more likely to step into Ethereum via this accessible route. That inflow might be the impulse that ETH needs, especially after a period of lagging performance compared to Bitcoin (BTC)-in particular in the field of ETF adoption.
The gap between the two is large: according to data from Coinglass, American Ethereum ETFS currently managed around $ 8.19 billion, while Bitcoin ETFS is good for an impressive $ 97.78 billion.
Source: https://newsbit.nl/hongkong-keurt-ethereum-spot-etf-met-staking-goed-lancering-op-15-mei/
