Huaxia, Kiln Launch Asia’s First Regulated Ethereum ETF in Crypto Hub HK
A significant milestone is on the cards to redefine Asia's crypto investment scene. Huaxia Fund (Hong Kong) has confirmed the launch of Asia's first Ethereum Staking ETF, slated for May 15, 2025, subject to approval by the Hong Kong Securities and Futures Commission (SFC). The development is a strategic move towards cementing Hong Kong's status as a top global crypto hub.
Drawing Strength from Previous ETF Success in Hong Kong
With the launching of Asia's first Bitcoin Futures ETF in 2022 and the listing of the CSOP Bitcoin Futures ETF (3066.HK), Hong Kong further extended its crypto products with the listing of the Inverse Bitcoin ETF on July 23, 2024. These developments have set a solid foundation for the emergence of Hong Kong as a central hub for digital asset innovation and staking solutions.
Huating's Strategic Partnership for Ethereum Staking ETF
The ETF is being created through a partnership with OSL Digital Securities and French staking service provider Kiln. The product has passed regulatory approval with the SFC and is expected to go live by the end of April.
As opposed to direct Ethereum staking, this ETF allows investors to collect staking rewards without having to deal with sophisticated technical procedures or maintain individual validator nodes. This provides a suitable and convenient option for retail and institutional investors to access regulated exposure to ETH staking.
Enhancing Hong Kong's Crypto Leadership
The latest policies by the SFC prove a definitive objective to position Hong Kong as a world-leading hub for digital assets. By the approval of two crypto-related ETFs within a period of three months, Hong Kong affirms its ambition for a pro-innovation and investor-friendly environment. SFC CEO Julia Leung welcomed the ETF as a "balanced example of product innovation and investor protection."
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New Rules for Crypto Staking in Hong Kong
Alongside this evolution, Hong Kong has launched new crypto staking guidelines, which affect local funds and exchanges providing staking services. The regulations have been designed to enhance transparency, minimize systemic dangers, and encourage Web3 businesses by guaranteeing compliance with international standards.
Kiln's Infrastructure Ensures Secure, Regulated Staking
Through Kiln's institutional validator infrastructure, stakeholders in the ETF will enjoy safe and institutional-quality staking activities. The regulated framework not only provides compliance and protection of investors, but also increases confidence in Ethereum staking, particularly against the backdrop of increasing concerns about unregulated crypto services.
Ethereum Market Snapshot
Currently, Ethereum is priced at $1,587.16, with a market cap of $193.89 billion and market dominance of 7.25%. Its 24-hour trading volume has reached $14.61 billion, showing strong investor appetite, particularly from institutional investors looking for blockchain-based yield-generating instruments.
Expert Insights: Convergence of Finance and Blockchain
OSL Digital Securities' Chairman and CEO Pan Zhiyong welcomed the collaboration with Huaxia and Kiln, adding that the ETF fills the gap between crypto innovation and traditional finance. He noted that ETF-regulated staking would attract broader participation from risk-averse investors.
