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Samsung Asset Management has announced plans to launch its first exchange-traded fund (ETF). The ETF will be listed in Hong Kong in June, and it could transform the adoption of cryptocurrencies and blockchain technology in Hong Kong.
Hong Kong has shown a lenient stance towards cryptocurrencies and blockchain technology. This is different from the stance taken by China. Last year, Mainland China announced a total ban on cryptocurrencies.
Samsung set to list Asia's first ETF
Over the past year, there has been a notable increase in the number of cryptocurrency and blockchain ETFs. This follows increased demand for digital assets in Hong Kong and globally. Many institutional players have also announced plans to venture into the blockchain and crypto space.
Samsung Asset Management is the largest asset management firm in Korea. The firm covers a wide range of investment options. A local publication said that this ETF would become the first in Asia that offers direct exposure to cryptocurrencies.
The reason behind filing an application for this ETF is to lure the young and evolving demographic. This demographic has become quite popular in the cryptocurrency space, and companies are looking for ways to attract a new clientele base and revenues to appease this demographic.
Samsung is launching a blockchain ETF that will become the first-ever in Asia that offers direct access to crypto assets in Asia. While having a direct inclusion of crypto assets is a positive sign for the growth of the crypto space, the approval of this ETF could face major hindrances in the domestic market. Direct crypto ETFs have not seen a high level of acceptance.
The Securities and Exchange Commission (SEC) has been reluctant to approve a spot Bitcoin ETF in the US. The SEC says that Bitcoin prices are vulnerable to manipulation, which could affect the trading for spot Bitcoin ETFs.
While the same concern has been shared in other jurisdictions, the approvals have gone through. Canada currently has several Bitcoin and Ethereum ETFs that were approved last year. Just this month, Australia announced the launch of its first direct cryptocurrency ETF, and like the rest, it also saw a high level of adoption.
The listing of this ETF is in line with Samsung's recent moves. Samsung Asset Management recently announced acquiring a 20% stake at AmpliFi, a US-based asset management firm. The acquisition was valued at $30 million. The signing of this deal has allowed Samsung Asset Management to gain exclusive rights to the sale of AmpliFi ETFs in Asia.
Samsung expands its ETF listings
Samsung released a statement saying that this ETF would have a similar structure to Amplify. The company is popular for investing in companies operating in the blockchain sector. The firm dedicates 80% of its net assets to equity securities of blockchain firms, making it a top issuer of blockchain ETFs.
Some of the popular companies that this fund has invested in include Silvergate. Silvergate is a firm that offers crypto banking services. It has also invested in NVIDIA, which specializes in manufacturing GPUs used in Bitcoin mining. Its other investment options include the Coinbase exchange and Galaxy Digital Holdings.
Cryptocurrency ETFs provide a new way that investors can access digital assets. ETFs have become very popular with institutional investors because they offer indirect exposure to crypto assets. The rate at which institutional players flow into the sector has also increased significantly. The other ETFs listed by Samsung Asset Management on the Hong Kong stock exchange include crude oil ETFs, FANG+ and more.