China Asset Management buys $1 billion worth of Bitcoin and Ethereum ETF assets or reduces management fees to 0.65%

According to the Hong Kong media Ming Pao, China Asset Management, Harvest International and Bosera Funds, three major Chinese fund companies, were approved by the Hong Kong Securities Supervision Commission this week for a Bitcoin and Ethereum spot ETF. According to the product summary, China AMC's ETFs have the highest annual expenditure ratio, reaching 1.99%; Harvest and Bosera's ETFs have annual expenditure ratios of 1% and 0.85% respectively, which are still generally higher than the Bitcoin spot ETFs issued in the United States. It is understood that Huaxia's higher expense ratio partly reflects the bank's purchase of insurance worth 1 billion US dollars for related assets. The management fee for the Bitcoin and Ethereum spot ETF issued by Huaxia is capped at 0.99% of AUM. According to internal assessments, the actual fee can be reduced to 0.65%. Bloomberg ETF analyst James Seyffart believes that Harvest's exemption of 6 months of management fees plus the lowest fees is likely to lead to a fee reduction war among Hong Kong fund companies.