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Victory Securities Unveils Its ETF Fees Despite SFC’s Issuer’s List Remaining Undisclosed

Victory Securities reveals its ETF fees ahead of the competition 

Victory Securities, a Hong Kong-based investment firm, has announced proposed fee structures for its forthcoming Bitcoin and Ethereum ETFs, ahead of official issuer approvals.

Key takeaways:

  • Victory Securities reveals fees for new Bitcoin and Ethereum ETFs.
  • Proposed fees range from 0.5% to 1% for primary market transactions.
  • Hong Kong's regulatory body has yet to announce approved ETF issuers.

Victory Securities has outlined the fees for its new Bitcoin and Ethereum ETFs, providing potential investors with early details despite the Hong Kong Securities and Futures Commission (SFC) not yet releasing a list of approved issuers. If given the green light by the SFC, the firm will charge fees ranging from 0.5% to 1% of the total transaction value for purchases of ETF shares in the primary market, with a minimum fee set at $850. This information was shared by Wu Blockchain on April 20, translating and reporting on the firm's announcement.

For secondary market transactions, fees are set to be lower, with online trades costing 0.15% and telephone transactions costing 0.25%. These rates align closely with those offered by U.S. asset managers, where fees for similar products range from 0.19% to 0.90%, and are significantly lower than the 1.5% charged by the Grayscale Bitcoin Trust (GBTC).

Market reaction and regulatory status

The disclosure by Victory Securities has been met with mixed reactions within the financial community. While many in Hong Kong's crypto sector welcomed the news, viewing it as a step towards greater legitimacy and accessibility for cryptocurrency investments in the region, others expressed skepticism, particularly regarding the accessibility for investors from Mainland China. Bloomberg ETF analyst Eric Balchunas highlighted the regulatory hurdles, noting in an April 17 post on X: 

"Mainland China investors probably won’t be eligible to buy Hong Kong-listed spot bitcoin and ether ETFs as they are barred from buying virtual assets." 

Despite these concerns, several offshore Chinese asset managers, including units of Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), are reportedly planning to launch their own Bitcoin and Ether ETFs soon, indicating a growing interest and investment in cryptocurrency products in Asia.