The cryptocurrency world is abuzz with anticipation as Hong Kong-based investment firm Victory Securities has taken the bold step of revealing its proposed fees for upcoming Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs). This move comes even before the Hong Kong Securities and Futures Commission (SFC) has officially published the list of approved ETF issuers, showcasing Victory Securities’ confidence in its offerings and readiness to hit the ground running.
According to reports, if granted approval by the SFC, Victory Securities plans to charge its customers fees ranging from 0.5% to 1% of the total transaction value for Bitcoin and Ethereum ETF shares in the primary market. This fee structure will apply to both retail and institutional investors seeking to acquire these ETFs directly from the issuer. Additionally, a minimum fee of $850 will be imposed, ensuring a baseline revenue stream for Victory Securities, regardless of the investment size.
For those investors interested in trading existing ETF shares on the secondary market, Victory Securities has proposed a more competitive fee structure. Online transactions will be subject to a 0.15% fee, while telephone-based trades will incur a slightly higher fee of 0.25%. This tiered approach aims to incentivize online trading, aligning with the broader trend of digital transformation in the financial sector.
The proposed fees from Victory Securities are generally in line with those charged by asset managers offering spot Bitcoin ETFs in the United States. While some U.S. firms have temporarily waived fees to attract early adopters, the long-term fee structures range from 0.19% to 0.90%, with the notable exception of the Grayscale Bitcoin Trust (GBTC), which imposes a higher fee of 1.5%.
While Victory Securities’ proactive approach has generated excitement within the cryptocurrency community, it remains to be seen how the Hong Kong market will respond to these offerings. As the regulatory landscape continues to evolve, investors and industry stakeholders alike will closely monitor the developments surrounding these highly anticipated Bitcoin and Ethereum ETFs.
