Samsung Asset Management has announced plans to list an exchange-traded fund (ETF) focused on blockchain. Samsung Asset Management is the largest asset management firm in Korea.
Samsung Asset Management to list Asia’s first ETF
The Samsung blockchain ETF will copy the Amplifi Transformational Data Sharing ETF. This is reported to be the first ETF In Asia that will focus on giving people exposure to cryptocurrencies.
A report by Hankyung said that this fund would be similar to Amplifi’s BLOK ETF, which mainly invests in crypto-related companies, including SilverGate Capital, Coinbase, Galaxy Digital Holdings and Bitcoin futures contracts.
Samsung Asset Management recently announced an acquisition of a 20% stake in Amplifi. The investment company acquired the stake for $30 million, and it received exclusive rights for the sale of the Amplifi ETF in Asia. The Samsung ETF will trade under Samsung’s name, and it will have the same structure as BLOK ETF.
If Samsung’s ETF is an exact replica of BLOK ETF, it will be partially backed by cryptocurrencies. Having cryptocurrencies in the EF could delay its approval, but Samsung is optimistic that the ETF will trade at home and in other countries.
The report added that “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 Dividends Income ETF (DIVO ETF)’ in Korea or Hong Kong.”
Samsung has been active in expanding its investment portfolio. The company currently has five other products listed in Hong Kong. These products include crude oil ETFs, REITs, China Internet and semiconductors. It will be the first time the company is paying attention to blockchain-related products. Listing this product could be Samsung’s strategy to appeal to the young demographic.
Institutional interest in blockchain ETFs
Blockchain ETFs have become increasingly popular among institutional investors. The cryptocurrency sector has grown significantly over the past year, but not all institutions are willing to accommodate the sector’s volatility.
BlackRock recently announced plans to launch a Blockchain and Tech ETF. The ETF will focus on the equities of crypto companies such as Coinbase and Marathon Digital. Such funds have received approval in the US compared to Bitcoin ETFs. The US Securities and Exchange Commission (SEC) has been reluctant to approve a spot Bitcoin ETF. However, the commission approved an ETF tracking Bitcoin futures.
Your capital is at risk.