The Hong Kong Securities and Futures Commission (SFC) has given its nod to three spot Bitcoin and Ethereum exchange-traded funds (ETFs), scheduled to commence trading on April 30.
Bloomberg Intelligence ETF analyst James Seyffart recently shared on social media that the ETF issuers have disclosed their fee structures, with one offering as low as 0.3% following a six-month waiver.
China Asset Management Co. (China AMC), Harvest Global Investments, and Bosera International, along with HashKey Capital, have enlisted Bank of China International-Prudential Trustee Limited (BOCI-Prudential) as their custodian.
The approved ETFs are designed to mirror the investment performance of Bitcoin and Ethereum, tracking the CME CF Bitcoin Reference Rate and the CME CF Ether-Dollar Reference Rate, respectively.
Seyffart’s table illustrated China AMC’s management fee at 0.99%, Bosera and HashKey at 0.6%, while Harvest Global offers a full fee waiver for six months and subsequently a 0.3% fee.
Seyffart noted, “A potential fee war could break out in Hong Kong over these Bitcoin & Ethereum ETFs,” highlighting Harvest Global’s competitive offering.
China AMC Eyes Pioneering Investment Options
China AMC, in its approval announcement, stated that their ETFs are set to debut on the Hong Kong Stock Exchange (HKEX) from April 30, marking a pioneering move in the Asian market.
Thomas Zhu, China AMC’s Head of Digital Assets and Family Office Business, remarked, “The spot Bitcoin and Ether ETFs provide both retail and institutional investors with a regulated avenue to invest in virtual assets securely and conveniently.”
Zhu emphasized the appeal of the in-kind feature, which allows coin holders to easily convert their holdings into fully regulated ETFs managed by professional fund managers and regulated custodians.
Aligning with Hong Kong’s aspirations to foster a dynamic web3 ecosystem, China AMC aims to develop innovative investment products and strategic differentiators to aid clients in achieving their investment objectives.
