Hong Kong’s Securities and Futures Commission (SFC) has taken a major step toward institutionalizing blockchain finance, approving staking services for virtual asset ETFs—making it the first jurisdiction in Asia-Pacific to do so.
Just over a week after the SFC revamped its virtual asset framework, China Asset Management (ChinaAMC) announced plans to launch a staking-enabled Ethereum ETF. The product is being developed in partnership with OSL Digital Securities and is expected to debut by May 15.
This move reinforces Hong Kong’s growing ambition to lead the next wave of compliant crypto innovation. By combining regulated custody from OSL with Ethereum’s staking economy, the ETF offers investors secure, yield-generating exposure to blockchain infrastructure.
Bosera, HashKey Set April Launch for Staking ETF
Bosera International and HashKey Capital are preparing to launch their own staking-enabled Ether ETF on April 25, following regulatory approval from the SFC.
The Bosera HashKey Virtual Asset Ether ETF will stake up to 30% of its holdings in Ethereum’s proof-of-stake network. Instead of offering passive exposure, the fund will reinvest staking rewards into the portfolio—aiming to enhance total returns for investors.
According to Thomas Zhu, head of digital assets at ChinaAMC, this approach makes Ethereum staking more accessible to both retail and institutional investors.
OSL and Kiln Power Staking Infrastructure for ETFs
The new staking-enabled ETFs are supported by infrastructure from OSL and Kiln, two leading players in Hong Kong’s digital asset ecosystem.
OSL, the first SFC-licensed and insured crypto platform in the region, is handling asset custody and reward distribution. Kiln, which operates validators on chains like Solana, Aptos, and Sui, is managing Ethereum validator operations. The partnership was finalized on April 10 to deliver secure, regulated staking services to the public.
The design ensures a division of responsibilities: Kiln runs the validators, while OSL secures assets and distributes rewards. Cold storage and insurance support OSL’s custody services, meeting institutional-grade requirements.
Staking rewards earned through Ethereum’s consensus mechanism are reinvested into the ETFs, reflected in their net asset value. This structure enables passive investors to benefit from staking without managing any technical setup—marking a major leap in compliant crypto finance across Asia.
Quick Facts
- Hong Kong’s SFC approved Ethereum staking for ETFs—an Asia-Pacific first
- ChinaAMC and OSL to launch staking-enabled Ethereum ETF by May 15
- Bosera and HashKey Capital’s ETF will begin staking on April 25
- New rules aim to balance innovation with investor protection
