Victory Securities discloses fees for upcoming Bitcoin and Ether ETFs in Hong Kong, despite pending official approvals.
Ahead of official approvals, Victory Securities, a Hong Kong-based investment firm, has preemptively revealed the fee details for its forthcoming Bitcoin and Ethereum exchange-traded funds (ETFs). This disclosure comes at a time when the Securities and Futures Commission (SFC) of Hong Kong has not yet finalized the list of sanctioned ETF issuers.
Victory Securities has set its sights on charging investors fees ranging from 0.5% to 1% for primary market transactions involving shares of Bitcoin and Ethereum ETFs. These fees will apply if the SFC grants the necessary approvals to the firm. Additionally, a minimum fee of $850 will also be part of these transactions.
For those looking to trade existing ETF shares on the secondary market, the fee structure is more nuanced. Online transactions will attract a fee of 0.15%, while those conducted over the telephone will incur a slightly higher charge of 0.25%. These rates are broadly in line with those charged by U.S. asset managers who are also involved in the administration of spot Bitcoin ETFs.
Comparative Fees
U.S. asset managers such as Franklin Templeton have recently set competitive fee rates at 0.19%, with other firms ranging their fees between 0.20% and 0.90%. In contrast, the Grayscale Bitcoin Trust (GBTC) applies a notably higher fee of 1.5%. This comparison underscores the competitive and varied fee structure that investors face in the global ETF markets.
The announcement from Victory Securities aligns with recent developments in Hong Kong’s financial landscape, where the approval of cryptocurrency ETFs received mixed reactions. While some local exchanges and segments of the crypto community have lauded the approvals, skepticism persists, especially concerning the potential uptake of these ETFs by Mainland China investors. Regulatory barriers prevent these investors from purchasing virtual assets, which could limit the market scope for Hong Kong’s newly approved financial products.
Despite these challenges, several Chinese asset managers with operations in Hong Kong, including units from Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), may launch their own Bitcoin and Ether ETFs.