China Asset Management purchased $1 billion worth of insurance for Bitcoin and Ethereum ETF assets, which may reduce management fees to 0.65%

According to Odaily Planet Daily, China Asset Management, Harvest International and Bosera Fund, three major Chinese fund companies, were approved by the Hong Kong Securities Regulatory Commission this week to launch a Bitcoin and Ethereum spot ETF respectively. China Asset Management's ETF has the highest annual expense ratio, reaching 1.99%; Harvest and Bosera's ETFs have annual expense ratios of 1% and 0.85% respectively, which are generally higher than the Bitcoin spot ETFs issued in the United States. China Asset Management's high expense ratio partly reflects that the bank has purchased insurance worth a total of US$1 billion for related assets. The management fee for the Bitcoin and Ethereum spot ETFs issued by China Asset Management is capped at 0.99% of AUM, and there is an internal assessment that the actual fee can be reduced to 0.65%.

Bloomberg ETF analyst James Seyffart believes that due to Harvest’s 6-month management fee exemption and the lowest fees, there is a high possibility that a fee reduction war will break out among Hong Kong fund companies.