As per news from Hong Kong's Securities and Futures Commission (SFC), three fresh spot Bitcoin and Ethereum exchange-traded funds (ETFs) got the green light for trading activities starting on April 30. A social media update from Bloomberg Intelligence ETF analyst James Seyffart disclosed that these ETFs will come with fees, with one going as low as 0.3% following a six-month grace period. The entities behind these developments, namely China Asset Management Co. (China AMC), Harvest Global Investments, and Bosera International and HashKey Capital, have enlisted Bank of China International-Prudential Trustee Limited (BOCI-Prudential) as their custodian partners.

These approved ETFs have been crafted to mirror the investment outcomes closely in line with Bitcoin and Ethereum's performance, computed based on the CME CF Bitcoin Reference Rate and the CME CF Ether-Dollar Reference Rate, correspondingly. Seyffart showcased a table illustrating China AMC aiming for a management fee of 0.99%; Bosera and HashKey proposing a 0.6% fee, while Harvest Global plans to offer a complete fee exemption for six months and a 0.3% fee afterward. Seyffart himself mentioned, "A prospective fee showdown could be in the offing in Hong Kong over these Bitcoin & Ethereum ETFs," highlighting Harvest's aggressive stance with a total fee waiver and the lowest charge at 0.3% post-waiver.

China AMC's Recognition for Transforming Investment Options

Upon the release by China AMC, the organization hinted at the expectation of commencing trading activities on the Hong Kong Stock Exchange (HKEX) from April 30, 2024, positioning these products as pioneers in the Asian financial sphere. Thomas Zhu, the Head of Digital Assets and Head of Family Office Business at China AMC, underlined the advantage of these spot Bitcoin and Ether ETFs for both individual and institutional investors, providing them with a secure, streamlined, and accessible vehicle for virtual asset investments within a regulated setting.

Through the in-kind aspect of these offerings, individuals with virtual coins receive an added incentive through the easy conversion of their holdings into fully regulated ETFs, managed by proficient fund supervisors and overseen by regulated custodians. China AMC's belief stands strong on the front of Hong Kong's vision to foster a thriving web3 environment, wherein they believe their strategic developments can form the basis for innovative investment choices, steering clients towards their financial objectives.