Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.
Victory Securities, a Hong Kong-based investment firm, has revealed its proposed fees for Bitcoin and Ethereum exchange-traded funds (ETFs) for investors. This follows the recent approval of cryptocurrency ETF products in the region.
The Hong Kong Securities and Futures Commission (SFC) has not yet released a list of approved ETF issuers, but if approved, Victory Securities’ primary market fees for Ethereum and Bitcoin ETFs will range from 0.5% to 1% of the total transaction, with a minimum fee of $850. This information was sourced from a translated report shared by Wu Blockchain on April 20.
In the secondary market, fees will be set at 0.15% for online transactions and 0.25% for telephone transactions.
These fees are comparable to those set by U.S. asset managers offering spot Bitcoin ETFs.
While some U.S. fees are currently waived, Franklin Templeton charges a 0.19% fee, while other ETFs range between 0.20% and 0.90%. The Grayscale Bitcoin Trust (GBTC) has a significantly higher fee of 1.5%.
As of April 15, Hong Kong has approved spot ETFs for Bitcoin and Ether, as reported by Cointelegraph.
At least three offshore Chinese asset managers, including the Hong Kong divisions of Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), plan to launch their spot Bitcoin and Ether ETFs soon.
While this approval has been welcomed by many in the crypto community and local Hong Kong exchanges, others remain skeptical about the success of these ETFs within the region.
“Mainland China investors are likely ineligible to purchase Hong Kong-listed spot Bitcoin and Ether ETFs due to restrictions on buying virtual assets,” Bloomberg ETF analyst Eric Balchunas stated in an April 17 post on X.