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 reported by the South Korean business newspaper Hankyung, the fund will resemble Amplify’s Transformational Data Sharing ETF (BLOK ETF). The latter invests mainly in cryptocurrency-related companies, such as SilverGate Capital, Galaxy Digital Holdings, Coinbase, and Bitcoin futures contracts.
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 price of Bitcoin, such as Canada’s Purpose Bitcoin ETF. Therefore, should Samsung’s structure truly be identical, that means it will be the first Asian ETF to be partly underpinned 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 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 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 ETFs
Blockchain ETFs have emerged as institutional gateways to investing in the burgeoning crypto industry, without having to stomach the volatility of 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 historically been much easier to launch in America than a Bitcoin ETF. Bitcoin Futures ETFs just hit the market last October, and a spot ETF is yet to be approved by the Securities and Exchange Commission.