Cryptocurrency exchange HashKey has received official approval from Hong Kong regulators to offer crypto staking services—a move that could make proof-of-stake investments like Ether (ETH) spot ETFs more appealing to institutional investors.

The approval was granted on April 10, following fresh regulatory guidelines from the Hong Kong Securities and Futures Commission (SFC). These guidelines provide a framework for staking services offered by Licensed Virtual Asset Trading Platforms (VATPs) and authorized investment funds. The announcement was shared on social media by the company.

HashKey announced that it is now "one of the first" Hong Kong-regulated exchanges to provide staking services.

This move comes after the China Securities Regulatory Commission (CSRC) acknowledged the benefits of staking, according to the SFC. The CSRC highlighted that staking not only strengthens blockchain network security but also allows investors to earn returns in a regulated market setup, according to a translated report by PANews.

HashKey to Lead ETH Staking

Terence Pu, HashKey's managing director, said the SFC's approval positioned the exchange to lead the market in spot Ether ETF staking.

Pu added that in the near future, investors will not only be able to earn staking rewards through Ether ETFs but also directly stake ETH for additional income through HashKey’s staking services.

Hong Kong took a pioneering step in April of the previous year by approving its first Ether and Bitcoin ETFs, allowing institutional investors access to an in-kind subscription model for digital assets.

While Hong Kong leads the way in letting ETF investors profit passively from digital assets, the Securities and Exchange Commission (SEC) permitted spot Ether ETFs last year, but staking tactics were prohibited in those offerings.

For US investors, staking has emerged as the missing element that might increase institutional investors' interest in domestic Ether ETFs. With a shift toward a more pro-crypto regulatory stance following the election of U.S. President Donald Trump and the appointment of a crypto-friendly SEC Chair, there is growing optimism that staking services could soon be introduced to U.S.-based Ether ETFs.

James Seyffart, a Bloomberg analyst, said that staking might be authorized in the US as early as May.