Samsung Asset Management (SAMHK), Hong Kong based subsidary of Samsung’s investment unit, revealed the launch of a blockchain-themed exchange-traded fund (ETF).
Samsung Asset Management which happens to be Korea’s largest asset manager, announced to introduce a blockchain-focused exchange-traded fund (ETF) in Hong Kong before July 2020. Touted as “the first ever global blockchain related ETF in Asia”, the fund will include actual cryptocurrency exposure. The move comes on the heels after SAMHK acquired a 20 per cent stake in the United States’ ETF sponsor Amplify Holding Company.
Blockchain Technology Is Revolutionizing The Financial Ecosystem
According to the official blog post, the ETF will delve deeper into achieving long-term capital growth by investing in stocks of companies actively involved in the development and adoption of blockchain technologies. SAMHK will be investing the fund in blockchain-related research and development firms, data providers, industry investment firms and others. The ETF is slated to list on the Hong Kong Exchange (HKEX) on June 23.
Carmen Chung, Head of ETF Team at Samsung Asset Management (Hong Kong), stated that blockchain technology is one of the leading innovations in the finance industry, holding promise to reduce fraud, ensure quick and secure transactions and trades, and ultimately help manage risk within the interconnected global financial system. She added,
“The demand of data processing and storage will expedite with the evolution of our digital world. Blockchain technologies will further be widely used for different businesses to improve data efficiency, security and shorten the accessibility time. We see this as one of the future trends on digital transformation.”
Samsung’s Rendezvous With Crypto
The blockchain themed ETFs will resemble Amplify’s BLOK ETF and track cryptocurrencies and blockchain tech companies to list in Asia. The ETF will be launched with a listing price at USD2.0 with an initial investment of approximately USD100 for a board lot size of 50 units. Samsung Asset Management is planning to brand the new ETF under its company name alongside its five existing ETFs on the HKEX.
This is not the first time for the technology giant, Samsung, to dip its toes in the crypto water. Last year, Samsung, announced that its default Blockchain Wallet app will be able to manage and store crypto investments across other crypto wallets.
The tech giant also introduced a project for developing a pilot program for South Korea’s CBDC. The firm has collaborated with the Bank of Korea (BOK) and Ground X, a blockchain affiliate of the messaging platform, Kakao, for the digital money.