On April 10, 2025, Bosera HashKey became the first staking provider approved under new regulations, allowing its Ether ETF to benefit from compound growth.

Staking involves locking crypto tokens to support blockchain operations, with participants typically earning rewards in cryptocurrency.

The staking feature for Bosera HashKey's ETF is set to go live on May 15, 2025, enabling active participation in the Ethereum ecosystem.

In addition to Bosera HashKey, Huaxia Fund is launching staking services for its Ether ETF, marking it as the second fund of its kind in Hong Kong.

Huaxia Fund, a subsidiary of China Asset Management, initially introduced its Ether ETF in April 2024.

BlackRock has noted that while ETH ETFs are performing well, the inclusion of staking options could attract a larger pool of investors.

This approval follows the Hong Kong Securities and Futures Commission's (SFC) updated rules on April 7, 2025, which permit crypto staking by centralized exchanges.

The SFC highlighted the advantages of staking, including enhanced blockchain security and improved yield generation for investors.

Currently, ETH stakers are earning an average yield of approximately 2.14% over a one-year period, according to Coinbase.

The SFC's recent actions are viewed as a strategy to bolster Hong Kong's status as a Web3 hub, promoting a regulated framework for a wider array of crypto products.

Hong Kong's blockchain sector has experienced remarkable growth, expanding by 250% since 2022, with projections indicating a fintech market value exceeding $600 billion by 2032.

The topic of staking for Ether ETFs is also gaining traction in the United States, with expectations for similar approvals under a supportive regulatory environment.