Victory Securities Unveils Planned Fees for Bitcoin and Ethereum ETFs Amid Regional Approval
Summary:
Victory Securities, a Hong Kong-based investment firm, has disclosed its planned fees for investments in Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs), following Hong Kong's recent approval of cryptocurrency ETF products. Fees for primary market purchases will be set at 0.5% to 1% of the total transaction, with a minimum fee of $850. Secondary market transaction fees will be 0.15% for online and 0.25% for telephone transactions. The announcement comes despite the Hong Kong Securities and Futures Commission (SFC) not yet releasing a list of approved ETF issuers. Several offshore Chinese asset managers are also considering launching spot Bitcoin and Ether ETFs soon. However, there are doubts about the ETF's regional success, as mainland China investors are barred from buying virtual assets.
Victory Securities, an investment company based out of Hong Kong, has unveiled its intended charges for investors in Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs). This comes on the heels of the recent nod towards cryptocurrency ETF formulations across the territory. While the Hong Kong Securities and Futures Commission (SFC) hasn't rolled out a list of endorsed ETF issuers yet, the news stands.
Victory Securities plans to fix its fees for buyers of Ethereum and Bitcoin ETF shares in the initial market at 0.5%- 1% of the full transaction. The minimum charge will stand at $850, as disclosed by translated excerpts shared by Wu Blockchain on the 20th of April. For those keen on trading existing ETF shares on the secondary market, online transactions will attract a 0.15% fee and phone-based transactions, 0.25%.
These charges align with competitive rates offered by US asset managers who provide spot Bitcoin ETFs. Even as the fees are currently on hiatus till August, asset manager Franklin Templeton has pegged its fee at 0.19%, with other ETFs falling within the 0.20% to 0.90% bracket. The Grayscale Bitcoin Trust (GBTC) has, however, set a significantly higher fee, at 1.5%.
Just last week on the 15th of April, Cointelegraph reported that Hong Kong has joined the list of countries giving the green light for spot ETFs on Bitcoin and Ether. Three offshore Chinese asset management companies, including Hong Kong divisions of Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), are queued up to unveil their spot Bitcoin and Ether ETFs soon.
The approval has been applauded by several members of the crypto community, including a number of local Hong Kong exchanges. Nonetheless, some have expressed doubts about the ETF's potential to succeed regionally. As per Eric Balchunas, a Bloomberg ETF analyst, mainland China investors presumably won't be entitled to buy spot bitcoin and ether ETFs listed in Hong Kong, given that they are prohibited from purchasing virtual assets. This was stated on an X.Magazine post dated April 17.
Published At
4/21/2024 9:01:57 AM
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