Victory Securities, an investment firm based in Hong Kong, has revealed its proposed fees for Bitcoin and Ethereum exchange-traded funds (ETFs). This happened amidst the approved introduction of cryptocurrency ETFs to the region. Interestingly, these details are shared even before the Hong Kong Securities and Futures Commission (SFC) has made public a list of approved ETF issuers.
If the SFC ratifies Victory Securities’ proposal, customers purchasing Bitcoin and Ether ETF shares in the primary market can expect fees falling between 0.5% and 1% per transaction. The minimum charge, however, remains at $850. These details are according to a report translation shared by Wu Blockchain on April 20.
Secondary market activities such as purchasing and selling ETF shares will induce a 0.15% fee for online transactions, whereas telephone transactions would result in a 0.25% fee. It is worth noting that these fees aren’t outliers. They fall within the standard range put forth by U.S. asset managers offering Bitcoin ETFs.
For perspective, while multiple fees are currently waived within the year, the U.S. asset management company, Franklin Templeton, has set its charge at 0.19% for Bitcoin ETFs, with other ETFs recording fees between 0.20% and 0.90%. However, Grayscale Bitcoin Trust (GBTC) imposes a significantly higher fee at 1.5%.
Around a week ago, reports indicated that Hong Kong had approved spot ETFs for Bitcoin and Ether. Following this, a handful of offshore Chinese asset managers, namely Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC) announced their intention to unveil Bitcoin and Ether ETFs shortly.
Despite the widespread optimism among local Hong Kong exchanges, there remain skeptics who question the feasibility of cryptocurrencies in the region. Eric Balchunas, a Bloomberg ETF analyst, pointed out that investors in Mainland China won’t likely invest in Hong Kong-listed Bitcoin and Ether ETFs, citing existing constraints on the purchase of virtual assets.