TL;DR
- The Hong Kong Securities and Futures Commission (SFC) has approved three new Bitcoin and Ethereum ETFs, which will start trading on April 30 in the local market.
- The issuers have revealed their fees, sparking a competition to offer the lowest commissions, with China AMC, Harvest Global Investments, Bosera International, and HashKey Capital in contention.
- Harvest offers a complete fee waiver for six months, and the lowest commission, at 0.3% after that period.
The Securities and Futures Commission of Hong Kong (SFC) has given the green light to three new exchange-traded funds (ETFs) for Bitcoin and Ethereum. They will start trading on April 30 in the local market.
The issuers of the new financial products have announced their fees, triggering a fierce competition to offer the lowest commissions. Among them, China Asset Management Co. (China AMC), Harvest Global Investments, Bosera International, and HashKey Capital have presented their proposals. So far, the lowest fee stands at a minimum of 0.3% after a six-month waiver period.
A potential fee war could break out in Hong Kong over these #Bitcoin & #Ethereum ETFs. Harvest coming in hot with a full fee waiver and the lowest fee at 0.3% after waiver. Tables are from my colleagues @RebeccaSin_SK & @thetrinianalyst! pic.twitter.com/zI1XobrTwZ
— James Seyffart (@JSeyff) April 24, 2024
Hong Kong at the Forefront of Crypto ETFs
The Hong Kong market is already anticipating a potential “fee war” among BTC and ETH ETFs. James Seyffart, an ETF analyst at Bloomberg Intelligence. Noted that “Harvest comes in strong. Offering a complete fee waiver and the lowest fee of 0.3% after the waiver period ends.”
The approval of these ETFs will provide retail and institutional investors with a secure and regulated way to access cryptocurrency investment. According to Thomas Zhu, Head of Digital Assets and Family Office Business at China AMC. These products will offer investors an efficient and convenient way to participate in the virtual assets market. While being safeguarded by an established regulatory framework.
The SFC’s decision to approve the acclaimed ETFs is evidence of the recognition and growing interest in the crypto industry. There is now an evident need to provide regulated and transparent investment options. Additionally, the approval of these financial products is likely to further strengthen the development of the crypto market in Hong Kong. Enhancing its position as a leading financial center in Asia.
With competitive fees and a focus on security and transparency. These ETFs offer investors a new way to participate in the Bitcoin and Ethereum market. We will have to wait until April 30 to see the first movements of investors and the impact they will have on the market.
