Huaxia Fund will purchase insurance for Bitcoin and Ethereum ETF assets worth $1 billion, which may reduce the management fee to 0.65%

ChainCatcher news, three major Chinese fund companies, Huaxia Fund, Harvest International, and Bosera Fund, have each been granted a Bitcoin and Ethereum spot ETF by the Hong Kong Securities and Futures Commission this week. According to the product summary, Huaxia's ETF has the highest annual expense ratio at 1.99%; Harvest and Bosera's ETFs have annual expense ratios of 1% and 0.85%, respectively, which are still generally higher compared to the Bitcoin spot ETFs issued in the United States.

It is understood that Huaxia's higher expense ratio partly reflects the fact that the firm has purchased insurance for related assets valued at $1 billion. The Bitcoin and Ethereum spot ETFs issued by Huaxia charge a management fee capped at 0.99% of AUM, with internal assessments indicating that the actual fee could be reduced to 0.65%. Bloomberg ETF analyst James Seyffart believes that Harvest's waiver of management fees for 6 months, combined with the lowest fees, makes it very likely that Hong Kong fund companies will trigger a fee reduction war.