Samsung’s ETF will be similar to the Amplifi Transformational Data Sharing ETF, which contains Bitcoin exposure.
Samsung Asset Management, Korea’s largest asset manager, intends to list a blockchain-focused exchange-traded fund (ETF) in Hong Kong before the end of July. This is supposedly Asia’s first ETF to have actual cryptocurrency exposure.
The First Blockchain ETF in Asia
The fund will be similar to Amplify’s Transformational Data Sharing ETF (BLOK ETF). The latter primarily invests in cryptocurrency-related businesses such as SilverGate Capital, Galaxy Digital Holdings, Coinbase, and Bitcoin futures contracts.
Samsung Asset Management recently purchased a 20% interest in Amplifi for $30 million and won exclusive sales rights in Asia for Amplifi’s ETF. Its new fund will have the same structure as the BLOK ETF, but will trade under the Samsung brand.
The BLOK ETF, on the other hand, includes other ETFs that directly follow the price of Bitcoin, such as Canada’s Purpose Bitcoin ETF. As a result, if Samsung’s structure is actually equivalent, it will be the first Asian ETF to be partially supported by cryptocurrencies.
The indirect cryptocurrency holdings are expected to cause the ETF’s domestic listing to be delayed. Nonetheless, a Samsung Asset Management executive stated that the business intends to list Amplify’s top items both domestically and internationally.
“As interest in dividends is growing due to a rise in US interest rates, we are considering additional listings such as the ‘Amplify CWP Enhanced Dividend Income ETF (DIVO ETF)’ in Korea or Hong Kong,” he continued.
Samsung has already listed five other goods in Hong Kong under its brand, including semiconductors, China Internet, REITs, and crude oil ETFs. Because cryptocurrencies are especially popular with millennials, the corporation’s newest blockchain-centric addition is designed to reinvigorate the company with a modern and global image.
Bitcoin ETFs vs. Blockchain ETFs
Blockchain ETFs have developed as institutional entry points into the expanding crypto industry, without the volatility of cryptocurrencies itself.
BlackRock just announced the introduction of its Blockchain and Tech ETF, which includes Coinbase and Marathon Digital, among other equities.
Historically, these funds have been significantly easier to start in the United States than a Bitcoin ETF. Bitcoin Futures ETFs were introduced to the market in October of last year, while a spot ETF has yet to be certified by the Securities and Exchange Commission.