Victory Securities, an investment firm based in Hong Kong, has reportedly unveiled its proposed fee structure for Bitcoin and Ethereum exchange-traded funds (ETFs) to potential investors. This development follows the recent approval of cryptocurrency ETF products in the region, despite the Hong Kong Securities and Futures Commission (SFC) not yet releasing a list of approved ETF issuers.
According to reports shared by Wu Blockchain on April 20, Victory Securities has outlined its proposed fees for clients interested in purchasing shares of Ethereum and Bitcoin ETFs in the primary market. These fees are anticipated to range from 0.5% to 1% of the total transaction amount, with a minimum fee set at $850.
In the secondary market, where investors trade existing ETF shares, Victory Securities has proposed fees of 0.15% for online transactions and 0.25% for telephone transactions. These fee structures are comparable to those offered by U.S. asset managers providing spot Bitcoin ETFs. While certain fee waivers are expected to occur in the U.S. later this year, asset manager Franklin Templeton, for instance, has set its fee at 0.19%, with other ETFs ranging from 0.20% to 0.90%.
Notably, Grayscale Bitcoin Trust (GBTC) imposes a notably higher fee of 1.5% compared to Victory Securities' proposed rates. Hong Kong's approval of Bitcoin and Ethereum spot ETFs, has spurred at least three offshore Chinese asset managers—Harvest Fund Management, Boshi Asset Management, and the Hong Kong subsidiary of China Asset Management (ChinaAMC)—to prepare for the launch of spot Bitcoin and Ethereum ETFs in the near future.
While the approval of ETFs has garnered praise from various quarters of the cryptocurrency community and local exchanges in Hong Kong, some observers remain skeptical about the success of these products in the region. Bloomberg ETF analyst Eric Balchunas highlighted concerns that mainland Chinese investors might be restricted from purchasing Hong Kong-listed spot Bitcoin and Ethereum ETFs due to prohibitions on virtual asset investments.
