TechPression

Tag: ETFs

  • Hong Kong approves staking services for licensed crypto platforms and ETFs

    Hong Kong approves staking services for licensed crypto platforms and ETFs

    Hong Kong’s Securities and Futures Commission (SFC) has introduced new regulations permitting licensed crypto exchanges and exchange-traded funds (ETFs) to offer staking services.

    The move, which was announced on April 7, aims to enhance the city’s position as a digital asset hub while ensuring investor protection and confidence.

    Read also: RedotPay raises $40 million to expand crypto payment ecosystem

    Strict controls and transparency are required

    Staking allows crypto holders to earn passive income by locking up their assets to support blockchain networks, particularly those using Proof-of-Stake (PoS) systems like Ethereum. The SFC emphasized that staking provides yield opportunities and enhances network security.

    Under the new rules, Virtual Asset Trading Platforms (VATPs) must maintain complete control over clients’ staked assets and cannot outsource staking to third parties without regulatory approval. Also, they must disclose risks, including potential hacking, validator failures, and lock-up periods.

    SFC CEO Julia Leung stated, “Broadening the suite of regulated services and products is crucial to sustain the healthy advancement of Hong Kong’s virtual asset ecosystem. But the broadening must be done in a regulated environment where the safety of client virtual assets continues to be front and center.”

    For ETFs, staking is permitted only through licensed platforms or authorised institutions with strict liquidity risk controls. Fund managers must further disclose staking-related risks and returns to investors.

    Read also: Hong Kong attracts tech talents from Nigeria, other countries with new visa scheme

    A contrast to global approaches

    Hong Kong’s approach differs from rivals like Singapore, which banned retail staking in 2023, and the U.S., where regulators have taken a restrictive approach. The SFC’s move aligns with its “Asset and Wealth Management, Sustainable Finance, Private Markets, and Real Economy (ASPIRe)” roadmap, which seeks to expand regulated crypto services while maintaining robust oversight.

    The decision comes as global competition for crypto dominance heats up, with Hong Kong positioning itself as a leader in institutional-grade digital asset services.

    “We have noted investors’ demand for staking services and the potential for staking activities to contribute to the security of the blockchain network,” the SFC added.

    The new rules take immediate effect, marking another step in Hong Kong’s push to become a crypto-friendly financial hub.

  • U.S. sees first Solana futures ETFs, marking crypto breakthrough

    U.S. sees first Solana futures ETFs, marking crypto breakthrough

    A significant milestone for cryptocurrency investment in the U.S. is set to take place as Volatility Shares LLC, a Florida-based company, prepares to launch two exchange-traded funds (ETFs) tracking Solana futures.

    These funds, the first of their kind, will expose investors to Solana, the sixth-largest cryptocurrency by market capitalisation.

    Read also: Solana marks 5th anniversary, reaching over 400 billion transactions since launch

    New investment opportunity in Solana

    The Volatility Shares Solana ETF (SOLZ) will track Solana futures, while the Volatility Shares 2X Solana ETF (SOLT) will offer leveraged exposure at twice the futures’ movements. The ETFs come with expense ratios of 0.95 percent and 1.85 percent, respectively. The company initially submitted its filing to the U.S. Securities and Exchange Commission (SEC) in December 2024.

    Justin Young, CEO of Volatility Shares, noted the relevance of this launch, stating, “Our launch comes at a time of renewed optimism for cryptocurrency innovation in the U.S. We believe the administration recognises the strategic importance of maintaining American leadership in financial technology.”

    The introduction of these funds follows a pattern seen with Bitcoin and Ethereum, where futures ETFs were introduced before spot ETFs.

    Solana has experienced a resurgence despite past challenges, particularly following the collapse of FTX in 2022. The blockchain network has gained traction due to its lower transaction fees and scalability compared to competitors.

    Bloomberg Intelligence ETF analyst Eric Balchunas commented on the launch, noting, “It’s the first altcoin after Ethereum to be approved. But history has shown that ETF investors crave holding the physical asset as much as possible.

    ” While the SEC has not yet approved a spot Solana ETF, firms like Grayscale, Franklin Templeton, and VanEck have already filed applications in anticipation of regulatory clarity.

    Read also: RedotPay raises $40 million to expand crypto payment ecosystem

    What to expect from Solana’s first futures ETFs

    With the increasing acceptance of digital assets, the launch of Solana futures ETFs marks another step toward mainstream adoption.

    The launch signals growing institutional interest and could pave the way for a spot in Solana ETF. Increased liquidity, potential price volatility, and regulatory shifts may follow. As Solana gains mainstream acceptance, investors should watch for market reactions and further ETF approvals in the coming months.