Samsung Asset Management – Korea’s largest asset manager – plans to list a blockchain-focused ETF in Hong Kong before July. This is reportedly the first ETF in Asia that will include actual cryptocurrency exposure.
Asia’s First Blockchain ETF
As South Korean business newspaper Hankyung reported, the fund will resemble Amplify’s Transformational Data Sharing ETF (BLOK ETF). The latter mainly invests in cryptocurrency-related companies, such as SilverGate Capital, Galaxy Digital Holdings, Coinbase, and Bitcoin futures.
Samsung Asset Management recently acquired a 20% stake in Amplifi for $30 million and secured exclusive sales rights for Amplifi’s ETF in Asia. Its new fund will contain the same structure as the BLOK ETF, but trade under Samsung’s name.
However, the BLOK ETF also contains other ETFs that directly track the Bitcoin price, such as the Canadian Purpose Bitcoin ETF. Therefore, if Samsung’s structure is truly identical, that means it will be the first Asian ETF to be partially backed by cryptocurrency.
The indirect cryptocurrency holdings are expected to cause delays to the domestic listing time of the ETF. Nevertheless, a Samsung Asset Management official explained that the company is planning to list Amplify’s best products at home, and abroad.
“As interest in dividends increases due to rising interest rates in the United States, we are considering additional listings such as “Amplify CWP Enhanced Dividend Income ETF (DIVO ETF)” in Korea or Hong Kong “, he continued.
Samsung has already listed five other products under its name in Hong Kong, such as semiconductors, China Internet, REITs, and crude oil ETFs. Its newest blockchain-centric addition is intended to renew the company with a young and global image since cryptocurrencies are especially popular with millennials.
Blockchain VS Bitcoin ETF
Blockchain ETFs have become institutional gateways to investing in the nascent crypto industry, without having to endure the volatility of the cryptocurrencies themselves.
Just yesterday, BlackRock announced the launch of its Blockchain and Tech ETF, which holds both Coinbase and Marathon Digital, among other equities.
These funds have always been much easier to launch in America than a Bitcoin ETF. Bitcoin Futures ETFs just hit the market last October, and a spot ETF has yet to be approved by the Securities and Exchange Commission.
