Samsung Asset Management – Korea’s largest asset manager – plans to list ETFs focused on blockchain companies in Hong Kong by July. This is reportedly the first ETF in Asia to include actual exposure to cryptocurrencies.
The first blockchain ETF in Asia
As informed South Korean website Hankyung, the fund will resemble Amplify’s Transformation Data Sharing ETF (BLOCK ETF). Fund invests primarily in cryptocurrency-related companies such as SilverGate Capital, Galaxy Digital Holdings, Coinbase and BTC futures contracts.
Samsung Asset Management recently acquired a 20% stake in Amplifi for $ 30 million and secured sales rights for Amplifi’s ETF in Asia. Its new fund will contain the same structure as the BLOK ETF, but will trade under the name Samsung.
However, the ETF also contains other ETFs that directly monitor the price of BTC, such as Canada’s Purpose BTC ETF. Thus, if Samsung’s structure were truly identical, it would mean that it would be the first Asian ETF to be partially cryptocurrency-based.
Indirect holding of cryptocurrencies is expected to delay ETF listing. However, Samsung Asset Management explained that the company plans to launch the best Amplify products at home and abroad.
“As interest in dividends grows due to rising interest rates in the United States, we are considering additional quotations such as the ‘CIVP Enhanced Dividend Income ETF (DIVO ETF)’ in Korea or Hong Kong.”
Samsung has already introduced five other products in Hong Kong under its name, such as semiconductors, the Chinese Internet, REIT and the oil ETF. His latest addition to the blockchain is to bring the company back to a young and global image, as cryptocurrencies are especially popular with millennials.
Blockchain ETFs have emerged as institutional gateways to investing in the evolving crypto-industry without having to endure the volatility of the cryptocurrents themselves. Just a few days ago, BlackRock announced the launch of its Blockchain and Tech ETF, which owns shares of Coinbase and Marathon Digital, among others.
These funds were much easier to run in the US than BTC ETFs. BTC Futures ETFs entered the market last October and spot ETFs has yet to be approved by the Securities and Exchange Commission.
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