Victory Securities Unveils Fees For Hong Kong's First Bitcoin & Ether ETF

According to reports, Victory Securities, an investment firm based in Hong Kong, has unveiled its proposed fees to investors for Bitcoin and Ethereum exchange-traded funds (ETFs) after the recent approval of cryptocurrency ETF products in the region.

Despite the Hong Kong Securities and Futures Commission (SFC) not releasing the list of approved ETF issuers, Victory Securities has announced proposed fees for Ethereum and Bitcoin ETF shares.

If approved by the SFC, customers can expect fees ranging from 0.5% to 1% of the total transaction in the primary market, with a minimum fee of $850, per a translated report from Wu Blockchain on April 20.

For investors trading existing ETF shares on the secondary market, online transactions will incur a fee of 0.15%, while telephone transactions will have a fee of 0.25%.

The fees are similar to those United States asset managers charged for spot Bitcoin ETFs. While some fees in the U.S. are waived at various times this year, Franklin Templeton has set its fee at 0.19%, with other ETFs ranging between 0.20% and 0.90%.

China Investors Restricted From Bitcoin ETFs

The Grayscale Bitcoin Trust (GBTC) charges a notably higher fee of 1.5%.

According to a report from Cointelegraph on April 15, Hong Kong has joined the ranks of countries approving spot ETFs for Bitcoin and Ether.

At least three offshore Chinese asset managers, including the Hong Kong branches of Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), are gearing up to introduce spot Bitcoin and Ether ETFs shortly.

While the approval garnered praise from many in the crypto community, including local Hong Kong exchanges, some remained sceptical about the ETFs’ success in the region.

“Mainland China investors are unlikely to be able to purchase Hong Kong-listed spot Bitcoin and Ether ETFs as they are prohibited from investing in virtual assets,” stated Bloomberg ETF analyst Eric Balchunas in an April 17 post on X.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.