Hong Kong-based investment firm Victory Securities has revealed the proposed fees for its Bitcoin and Ethereum exchange-traded funds (ETFs), signaling a move towards cryptocurrency investment products following recent regulatory developments in the region. Despite the Hong Kong Securities and Futures Commission (SFC) delaying the publication of an approved list of ETF issuers, Victory Securities has forged ahead with its fee disclosure.

If approved by the SFC, Victory Securities plans to levy fees ranging from 0.5% to 1% of the total transaction value for both Bitcoin and Ethereum ETF shares in the primary market, with a minimum fee set at $850. This information was shared in an extract from a translated report posted by Wu Blockchain on April 20.

For investors engaging in transactions on the secondary market, Victory Securities proposes fees of 0.15% for online transactions and 0.25% for telephone transactions. These fee structures are comparable to those set by United States asset managers offering spot Bitcoin ETFs, with fees ranging from 0.19% to 0.90%, while the Grayscale Bitcoin Trust (GBTC) imposes a higher fee of 1.5%.

The approval of spot ETFs for Bitcoin and Ether in Hong Kong, announced on April 15, has spurred several offshore Chinese asset managers, including the Hong Kong units of Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), to plan their launches of spot Bitcoin and Ether ETFs in the near future.

While the decision has garnered praise from many in the crypto community and local Hong Kong exchanges, concerns remain about the eligibility of mainland China investors to purchase Hong Kong-listed spot Bitcoin and Ether ETFs, given restrictions on virtual asset purchases. Bloomberg ETF analyst Eric Balchunas highlighted this skepticism in an April 17 post on X.