Abstract

• Policy Background: On April 7, 2025, during the Hong Kong Web3 Festival, the Hong Kong Securities and Futures Commission (SFC) issued the Circular on staking services provided by virtual asset trading platforms. China Asset Management and Bosera Asset Management, which had already issued Ethereum spot ETFs, responded quickly to the issue. Compared with the U.S. Securities and Exchange Commission, the SFC approved the staking service of the Ethereum spot ETFs earlier, making it a milestone for Hong Kong in its ambition to become the Web3 hub of Asia. This move not only reflects the regulator’s in-depth research on the on-chain income distribution mechanism but also shows the government’s proactive and open approach to crypto-related policies.

• Returns on ETH Staking: In May 2025, the APY of ETH staking stood at 3.07%. As a financial product, ETH staking does not offer particularly high returns and is less competitive compared to the staking yield of SOL. However, Ethereum ETF staking improves investors’ returns without raising the barrier to entry, which marks a milestone in the evolution from Web2 to Web3 financial services. For traditional financial investors, staking can be viewed as an additional 3% dividend on top of their token-based holdings.

• Ethereum ETF Staking Is a Long-Tail Policy Benefit: After the launch of the staking service in April 2025, there was no significant increase in subscriptions to Hong Kong’s Ethereum spot ETFs. In May, as the price of ETH rose from US$1,500 to US$2,500, Hong Kong Ethereum ETFs saw net inflows of US$610,000 and US$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 favorable policy, but it has not led to a notable increase in assets under management in the short term. This is mainly due to the insufficient liquidity in the Hong Kong market, difficulties faced by international investors in registration, and the general lack of understanding of the “staking” concept among traditional investors.

• Hong Kong Ethereum Ecosystem Prospects and RWA Development: As the financial hub in Asia, Hong Kong has demonstrated a strong commitment to the RWA sector, reflected in related policy support and fast-launched programs. In August 2024, the Hong Kong Monetary Authority officially launched the Project Ensemble Sandbox to accelerate the adoption of tokenization. As Ethereum is currently the public chain with the highest total RWA volume, the launch of staking services for Ethereum ETFs in Hong Kong may signal broader ambitions, potentially indicating Hong Kong’s intention to play a more active role in Ethereum network governance as part of its drive to develop the RWA ecosystem.

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