Hong Kong Bitcoin and Ethereum ETF Fee Details Are Now Out

Hong Kong Bitcoin ETF
Hong Kong Bitcoin ETF

YEREVAN (CoinChapter.com) — Victory Securities, a Hong Kong-based capital market company, has announced the fee structure of its upcoming Bitcoin and Ethereum exchange-traded funds (ETFs). The details come even as the Hong Kong Securities and Futures Commission (SFC) has yet to finalize the list of approved ETF issuers.

Detailed Fee Breakdown

For those looking to invest directly, Victory Securities proposes a fee range between 0.5% to 1% of the total transaction value, with a minimum charge pegged at $850. This fee structure applies to shares purchased in the primary market.

Conversely, the secondary market, which involves buying and selling existing ETF shares, offers a more economical fee model. Online transactions attract a 0.15% fee, whereas telephone transactions incur a slightly higher charge of 0.25%.

Source: Wu Blockchain
Source: Wu Blockchain

Hong Kong vs. U.S. Crypto ETF Fee Comparison

These rates mirror those found in the United States, where asset managers have structured their fees for Spot Bitcoin ETFs to vary from 0.19% to 0.90%.

Interestingly, Franklin Templeton, a prominent asset manager, currently offers a competitive fee of 0.19%. Notably, the Grayscale Bitcoin Trust (GBTC) levies a higher fee of 1.5%, making Victory Securities’ fees appear reasonable by comparison.

However, Bloomberg ETF analyst Eric Balchunas pointed out that investors from mainland China might face restrictions in accessing these Hong Kong-listed ETFs, as current regulations bar them from purchasing virtual assets directly. This stipulation might shape the market dynamics as these ETFs roll out.

China's ETF Access Barrier: Bloomberg Intelligence Insights
China’s ETF Access Barrier. Source: Bloomberg Intelligence Insights

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