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Hong Kong Securities and Futures Commission Approves Bitcoin and Ethereum ETFs
The Hong Kong Securities and Futures Commission (SFC) has given the green light to three spot Bitcoin and Ethereum exchange-traded funds (ETFs) that are set to commence trading on April 30.
ETF Issuers and Fees
China Asset Management Co. (China AMC), Harvest Global Investments, and Bosera International and HashKey Capital are the issuers of the approved ETFs. The custodian for all three ETFs will be Bank of China International-Prudential Trustee Limited (BOCI-Prudential).
According to Bloomberg Intelligence ETF analyst James Seyffart, the issuers have disclosed their fees, with China AMC charging a management fee of 0.99%, Bosera and HashKey at 0.6%, and Harvest Global offering a six-month waiver with a fee of 0.3% thereafter.
Investment Strategy and Objectives
The approved ETFs aim to mirror the performance of Bitcoin and Ethereum, as determined by the CME CF Bitcoin Reference Rate and the CME CF Ether-Dollar Reference Rate, respectively.
Competition and Potential Fee War
James Seyffart highlighted the potential for a fee war in Hong Kong over these Bitcoin and Ethereum ETFs, with Harvest Global leading the charge by offering a full fee waiver and the lowest fee of 0.3% post-waiver.
China AMC’s Innovative Investment Choices
In its approval announcement, China AMC stated that their ETFs are expected to debut on the Hong Kong Stock Exchange (HKEX) on April 30, 2024, marking the first such financial products in the Asian market.
Thomas Zhu, Head of Digital Assets and Head of Family Office Business at China AMC, emphasized that the spot Bitcoin and Ether ETFs provide a secure and convenient way for retail and institutional investors to invest in virtual assets within a regulated framework.
China AMC believes that by offering innovative investment options and strategic differentiators, it can support clients in achieving their investment objectives and contribute to Hong Kong’s vision of fostering a dynamic web3 ecosystem.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
