TLDR
Hong Kong’s Securities and Futures Commission (SFC) approved China Asset Management (ChinaAMC) to launch a staking-enabled Ethereum ETF by May 15
ChinaAMC will collaborate with OSL Digital Securities, leveraging their status as an SFC-licensed digital asset platform
OSL will provide custody services while Kiln manages validator nodes for the Ethereum network
This follows an earlier approval for Bosera International and HashKey Capital’s staking ETF, expected to launch April 25
The SFC recently published guidance permitting licensed platforms to offer staking services as part of Hong Kong’s strategy to become a digital asset hub
Hong Kong is rapidly positioning itself as a leading hub for crypto assets in Asia through a series of regulatory approvals that are transforming the investment landscape. The latest development comes as China Asset Management (ChinaAMC) received approval from Hong Kong’s Securities and Futures Commission (SFC) to launch an Ethereum ETF with staking capabilities.
The staking-enabled ETF, set to launch by May 15, represents a next step in Hong Kong’s evolving approach to digital assets. This approval follows the SFC’s recent guidance published on April 7, which officially permitted licensed virtual asset trading platforms to offer staking services.
ChinaAMC’s ETF will implement staking through a collaboration with OSL Digital Securities. The partnership allows the Ether ETF to transform from a passive investment vehicle into an active participant in the Ethereum ecosystem, enabling investors to earn proof-of-stake rewards.
“This lowers the threshold to participating in Ethereum staking,” said Thomas Zhu, head of digital assets at ChinaAMC, in a statement. The arrangement makes staking more accessible to retail and institutional investors who might otherwise find direct participation technically challenging.
The Technical Implementation
The technical framework behind the staking ETF involves multiple partners with specific roles. OSL, as the first insured and SFC-licensed digital asset platform in Hong Kong, will provide custody services with cold storage and insurance coverage.
Kiln, a staking platform that also powers other blockchains like Solana, Aptos, and Sui, will manage the validator nodes performing consensus duties on the Ethereum network. The companies formalized their partnership on April 10 with the goal of bringing Ethereum staking to market.
The implementation maintains a clear separation of duties. Kiln handles the validation aspects while OSL controls the assets and handles reward distribution to investors.
According to the announcement, staking rewards generated through this arrangement will accrue to the ETF and be incorporated into its net asset value. This structure benefits shareholders while maintaining regulatory compliance.
Hong Kong’s Crypto Strategy
This approval is not an isolated event but part of a broader strategy. Earlier this month, Bosera International and HashKey Capital Limited jointly launched their own fund with a staking provision, expected to launch on April 25.
Hong Kong’s regulatory approach has evolved quickly in 2025. The SFC recently unveiled a comprehensive roadmap called “ASPIRe” that outlines strategic initiatives to strengthen the city’s position as a global virtual assets hub.
The roadmap introduces a five-pillar framework—Access, Safeguards, Products, Infrastructure, and Relationships—targeting key aspects of the digital asset ecosystem. This 12-initiative plan aims to foster growth by enhancing the overall structure of Hong Kong’s crypto economy.
During a keynote speech at the Hong Kong Web3 Festival 2025, SFC Executive Director Christina Choi described how virtual assets could drive innovation in finance. The speech coincided with the announcement permitting licensed platforms to offer staking services.
For investors, these ETFs offer several advantages. They provide easier access to staking rewards without requiring technical expertise in running validator nodes. The ETF structure also offers liquidity advantages compared to direct staking, which often involves lock-up periods.
Institutional-grade security is another benefit, as OSL provides cold storage and insurance coverage for the underlying assets. This addresses security concerns that might deter traditional investors from direct participation in crypto staking.
The staking rewards generated through the ETF are automatically reinvested, potentially leading to compound growth over time. This feature makes the product attractive for long-term investors seeking both capital appreciation and yield.
Tax reporting may also be simplified compared to managing staking rewards directly, as the ETF structure provides a familiar investment vehicle with established reporting frameworks.
As more ETFs incorporate staking features, Hong Kong is cementing its role as an innovation leader in regulated crypto products. The SFC’s approach could influence regulatory developments in other jurisdictions seeking to balance innovation with investor protection.
These developments come at a time when yield-generating investments are increasingly sought after by both retail and institutional investors. By bringing staking capabilities to regulated ETFs, Hong Kong is creating new opportunities for income generation in the digital asset space.
The ETF launch represents a major step toward mainstream adoption of both Ethereum and staking. By reducing technical barriers and providing a regulated framework, Hong Kong is making crypto staking more accessible to a wider range of investors.
