[Breaking] Bosera HashKey Ethereum ETF approved for staking activities, Hong Kong virtual asset industry achieves new breakthrough

Bosera Funds (International) Limited ("Bosera International") and HashKey Capital Limited ("HashKey Capital") jointly announced today that their co-launched Bosera HashKey Ethereum ETF (Stock Code:$BOS HSK ETH(3009.HK)/9009.HK, hereinafter referred to as "the ETF") has been officially approved by the Securities and Futures Commission of Hong Kong (hereinafter referred to as the "SFC"), and will be permitted to conduct Ethereum staking activities starting from April 25, 2025, to enhance investment returns *. This will make the ETF the first virtual asset spot ETF in the Asia-Pacific region to support Ethereum staking. This move not only fills a market gap but also opens up innovative pathways for investors to participate in the Ethereum ecosystem.

On April 30, 2024, Bosera International and HashKey Capital launched the first batch of Ethereum ETFs in Hong Kong, providing investors with safe and convenient investment tools that allow them to hold Ethereum without dealing with asset storage and security issues themselves. The launch of this product marks a new phase of development for Hong Kong's virtual asset industry. On the first anniversary of the ETF's listing, Bosera International and HashKey Capital once again lead industry innovation by obtaining approval to stake up to 30% of its holdings to earn Ethereum staking rewards. After deducting relevant service fees, the rewards will be reinvested into the ETF, further driving the product's compound growth^.

As a discoverer of investment value, Bosera International has always been committed to providing professional and comprehensive asset management services for institutional and individual investors worldwide. Using financial innovation to promote financial inclusion and leveraging fintech to empower investor services is one of Bosera International's key strategies.

The staking services for the ETF will be provided by HashKey Cloud. Its flagship staking product, ETF Staking Pro, through HashKey Exchange, supports Hong Kong's first batch of Ethereum spot ETFs—Bosera HashKey Ethereum ETF—with secure and compliant staking solutions *. Relying on industry-leading custody solutions, robust compliance systems, and professional risk control measures, HashKey Exchange provides investors with full protection to ensure the safety of ETF assets and staking rewards.

With highly professional ETF business knowledge and capabilities, BOCI-Prudential Trustee, while strictly adhering to Hong Kong's regulatory requirements for virtual asset custody services, has successfully assisted our fund manager clients in launching the market's first batch of spot virtual asset ETFs, tokenized share classes, and other virtual asset services, providing Hong Kong's retail investors with innovative virtual asset investment channels.

Ms. Lian Shaodong, Chairman and CEO of Bosera International, M.H. stated: "This successful approval for staking participation is an important achievement in our practice of Bosera's investment philosophy and our continuous exploration of investment opportunities in the virtual asset space. This innovative move not only enhances returns for investors * but also provides a Bosera solution for Hong Kong's virtual asset industry. In the future, Bosera International will continue to leverage its leading advantages in investment and fintech to further promote the integration of traditional finance and the Web3 space, serving as a bridge between on-chain and off-chain, and providing investors with more investment choices and better investment experiences."

Deng Chao, CEO of HashKey Capital and CEO of HashKey OTC Global, said: "This ETF effectively lowers the investment threshold, not only attracting more investors to participate in Ethereum staking but also creating a strong foundation for deeper engagement in the Ethereum ecosystem and decentralized finance (DeFi). We are delighted to offer investors a new opportunity to participate in Ethereum staking investments through the Bosera HashKey Ethereum ETF. On the first anniversary of the ETF's launch, we remain firmly committed to providing innovative and compliant investment solutions for the virtual asset space. By leveraging HashKey Cloud's institutional-grade staking infrastructure under HashKey Group, we will provide professional and retail investors with a safe, efficient, and regulated investment vehicle to easily earn staking rewards."

Andrew Law, CEO of BOCI-Prudential Trustee, said: "We are honored to participate in this innovative financial product jointly created by Bosera Fund and HashKey, enabling the fund to not only participate in virtual asset allocation but also earn potential investment returns through Ethereum staking."

About Bosera International

Bosera International is one of the first Chinese fund companies to conduct asset management business in Hong Kong. Since its establishment, Bosera International has seized opportunities in global asset allocation, adhered to value investment principles, and developed a comprehensive product line centered on stable fixed-income investments, including active equity and passive index products. It has also actively established partnerships with other international companies to provide global investors with two-way and cross-border asset management services. Bosera International serves clients across core financial regions, including the U.S., Europe, South Korea, Singapore, and Hong Kong. After 15 years of operation in Hong Kong, Bosera International has become one of the largest Chinese asset management companies in Hong Kong. Bosera International places high importance on product innovation and is committed to promoting financial inclusion through financial innovation. In 2024, two of Bosera International's virtual asset spot ETFs were officially listed on the Hong Kong Stock Exchange, becoming Asia's first virtual asset spot ETFs; in 2025, Bosera International further expanded its exploration in the Web3 space, recently collaborating with HashKey to launch the world's first pair of tokenized money market ETF shares and the Asia-Pacific's first staking-supported Ethereum ETF, providing a Bosera solution for Hong Kong's virtual asset industry.

About HashKey Capital

HashKey Capital, as a globally influential crypto asset management company, is a leader in the digital asset and blockchain space, committed to collaborating with institutions, founders, and talent to drive the long-term development of the blockchain industry. As one of the largest cryptocurrency funds and one of the earliest investors in Ethereum, HashKey Capital has grown its total assets under management to over $1 billion since its inception. With its outstanding expertise and deep market insights, HashKey Capital now manages a diversified investment portfolio, including over 600 leading projects across institutional services, infrastructure, data, artificial intelligence, consumer services/tech, and more.

In addition, HashKey Capital has successfully launched a series of secondary fund products, including an actively managed fund and the Bosera HashKey Bitcoin ETF (3008.HK) and Bosera HashKey Ethereum ETF (3009.HK) listed on the Hong Kong Stock Exchange (HKEX). With a profound understanding of the blockchain ecosystem, HashKey Capital has built a robust network connecting founders, investors, developers, and regulators.

About BOCI-Prudential Trustee

BOCI-Prudential Trustee has over two decades of trust management experience, primarily providing trust and administrative, custody, as well as transfer agency and registration services for funds and retirement plans. As of December 2024, BOCI-Prudential Trustee, as a mainstream retirement plan trustee and custodian in Hong Kong, manages MPF assets exceeding HKD 95 billion, with approximately 900,000 MPF accounts under its plans. BOCI-Prudential Trustee is deeply involved in the design and construction of asset tokenization technology, successfully tokenizing money funds as a fund transfer agent and administrator, demonstrating standardized capabilities in virtual asset securities services. With highly professional ETF business knowledge and capabilities, BOCI-Prudential Trustee, while strictly adhering to Hong Kong's regulatory requirements for virtual asset custody services, has successfully assisted our fund manager clients in launching the market's first batch of spot virtual asset ETFs, tokenized share classes, and other digital asset services, providing Hong Kong's retail investors with innovative virtual asset investment channels.

$BOS HSK ETH(03009.HK)  $BOS HSK ETH-U(09009.HK) 

Risk Disclosure

Investing involves risks. Past investment performance is not indicative of future results. Investors should not base their investment decisions solely on the information provided herein. The above information is for reference only and should not be construed as an offer to subscribe or sell to any person. Before making any investment decision, investors should carefully read the relevant fund's prospectus and product key facts statement, including the product features and risk factors contained therein. Investors should consider whether the product is suitable for them based on their investment experience, objectives, financial situation, and risk tolerance. If necessary, seek independent professional advice.

Bosera HashKey Ethereum ETF ("the Fund") is a sub-fund of Bosera Global Exchange Traded Fund Open-Ended Fund Company ("the Company"), a public umbrella open-ended fund company with limited liability and segregated liability between sub-funds, established under Hong Kong law. The Company has been registered with the Securities and Futures Commission ("SFC") as an open-ended fund, and the Company and the Fund have been authorized by the SFC under Section 104 of the Securities and Futures Ordinance. The SFC's registration or authorization does not constitute a recommendation or endorsement of the Company or the Fund, nor does it guarantee the commercial value or performance of the Company or the Fund. This does not mean that the Company or the Fund is suitable for all investors or any specific investor or investor category.

· Investors must be aware of investment risks, including but not limited to:

   o The Fund's portfolio may depreciate due to any risk factors, and therefore your investment in the Fund may suffer losses. There is no guarantee of principal repayment. There is no guarantee that the Fund will achieve its investment objective.

   o Extreme price volatility risk: Compared to traditional securities investments, virtual assets and related products are highly volatile, and their price movements are difficult to predict.

   o Custody risk: Ownership and rights to virtual assets depend on the secure storage and knowledge of private keys. If a private key is lost without a backup, access to the corresponding virtual asset address will also be lost, and the Bitcoin network cannot recover it. Sub-custodians must arrange compensation to cover potential losses of client virtual assets through third-party insurance or other permitted means, but there is no guarantee that such arrangements will fully protect the Fund's virtual assets from all possible losses. If the sub-custodian's compensation arrangements are insufficient to cover the Fund's virtual asset losses, neither the manager nor the Fund will be responsible for the shortfall.

   o Cybersecurity, fraud, market manipulation, and security failure risks: Virtual assets may face risks of fraud, theft, manipulation, or security failures, operational or other issues affecting virtual asset trading venues. In particular, virtual asset networks and entities that custody virtual assets or facilitate virtual asset transfers or transactions are vulnerable to various cyberattacks. Malicious actors may also exploit flaws in virtual asset network code or structure to steal virtual assets held by others, control blockchains, steal personal identity data, or issue large amounts of virtual assets in violation of protocols. The occurrence of any of the above situations may negatively impact virtual asset prices, thereby adversely affecting the Fund's investments.

   o Risks related to virtual asset trading platforms: The virtual asset trading platforms where the Fund may acquire and sell virtual assets are still being established. Compared to other spot virtual asset trading venues, the liquidity of virtual assets traded on such platforms may be lower. On such platforms, the bid-ask spread for virtual asset prices may be wide, and the Fund may incur significant transaction costs. If the virtual asset trading platform license issued by the SFC is revoked/terminated or becomes invalid for other reasons, the Fund may be prohibited from trading and purchasing Bitcoin.

   o Risks related to staking

There is no guarantee that staking will generate returns, and past staking returns are not indicative of future performance. If staking services are suspended or terminated, the sub-fund may be unable to use its assets for staking for a period of time or entirely.

Staking service providers: If a staking service provider fails to operate in accordance with Ethereum network rules or due to cyberattacks, security issues, or other unforeseen problems, the sub-fund's staked Ethereum may face loss risks.

Slashing risk: Staking may face the risk of virtual asset losses due to slashing mechanisms. For Ethereum, if a validator commits major violations, such as double-signing, prolonged downtime, or proposing or attesting conflicting blocks, it may be slashed. If any of the sub-fund's staking service providers are slashed by the Ethereum network, the sub-fund may be affected, resulting in the loss of rewards and principal. Even without slashing, if a staking service provider experiences prolonged downtime due to inactivity, the sub-fund may fail to earn rewards or even face penalties.

Staking characteristics and liquidity risk: Staking characteristics such as lock-up periods, staking reward distribution cycles, and reward amounts may not remain unchanged, potentially leading to liquidity risks or delayed settlement cycles. During the lock-up period, staked assets cannot be transferred, sold, or otherwise disposed of. Additionally, staked assets may not distribute staking rewards daily, which may prevent staking rewards from being promptly reinvested in the sub-fund.

Legal uncertainty risk: As staking mechanisms are relatively novel, there is currently no case law on the ownership of staked assets. This legal uncertainty may affect the nature and enforceability of the sub-fund's rights to its staked virtual assets.

Unstaking process risk: Unstaking may take a certain amount of time (ranging from days to weeks), during which the manager cannot withdraw or liquidate the staked Ethereum.

Volatility risk: Given the high volatility of Ethereum prices, the value of Ethereum at the end of the unstaking period may be significantly lower than at the time of the unstaking decision.

Queue entry period risk: After staking Ethereum, validators may need to go through a queue entry period lasting up to several weeks before they can begin participating in the Ethereum network. During this period, staked Ethereum will not earn any staking rewards and cannot be withdrawn.

   o Other risks: New innovation risks, unforeseen risks, speculative risks, cybersecurity, fraud, market manipulation and security failure risks, counterparty risks, regulatory risks, fork risks, etc.

* Staking rewards may be affected by Ethereum network validator performance, slashing risks, and market volatility.

^ Past performance is not indicative of future results.

The above information has not been reviewed by the Securities and Futures Commission of Hong Kong.

Issuer: Bosera International. No part of this document may be photocopied, distributed, or reproduced without the consent of Bosera International.