Victory Securities, a Hong Kong-based investment firm, has revealed its fee structure for the newly approved Bitcoin and Ethereum exchange-traded funds (ETFs), despite the Hong Kong Securities and Futures Commission (SFC) not yet releasing a list of approved issuers. This early announcement underlines the firm’s preparation to cater to the growing interest in cryptocurrency investments in the region.
Fee Details for Investors
The proposed fees set by Victory Securities for primary market transactions of Ethereum and Bitcoin ETF shares are slated to range between 0.5% and 1%, with a minimum fee pegged at $850. This fee structure aims to align with the investment firm’s strategy to balance accessibility with operational costs. For those trading ETF shares on the secondary market, Victory Securities has set a fee of 0.15% for online transactions and 0.25% for telephone transactions, offering flexibility and options for investors.
Comparisons to U.S. Fee Structures
The fees disclosed by Victory Securities are somewhat comparable to those set by U.S. asset managers for similar cryptocurrency ETFs. For instance, Franklin Templeton charges a management fee of 0.19% for its spot Bitcoin ETF, while other U.S. ETFs vary between 0.20% and 0.90%. Notably, Grayscale’s Bitcoin Trust (GBTC) carries a higher fee of 1.5%, underscoring a varied fee landscape depending on the fund manager and the specific product.
Regional Developments and Market Reactions
The recent approval of spot ETFs for Bitcoin and Ether by Hong Kong authorities has been met with mixed reactions. While many in the local and international crypto community have praised the move, concerns persist about the accessibility of these products to mainland China investors due to regulatory restrictions on virtual assets. Despite these concerns, at least three offshore Chinese asset managers, including units from Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), are preparing to launch their spot Bitcoin and Ether ETFs, signaling robust interest and a potentially expanding market.
