Samsung Asset Management, the investment arm of the South Korean conglomerate, will list its Bitcoin Futures Exchange Traded Fund (ETFs) on the Hong Kong Stock Exchange. The move comes after Hong Kong’s SFC announced last year that it would allow ETF providers to list futures contracts on the exchange. Hong Kong is the only location in Asia that allows BTC ETFs to be listed on traditional market exchanges and not just cryptocurrency exchanges. Samsung’s decision is fueled by increasing exposure to digital assets from Asian investors, both individuals and institutions.
The ETF is set to track Bitcoin spot prices to do this, investing in bitcoin futures products already listed on the Chicago Mercantile Exchange (CME).
“The Sub-Fund seeks economic exposure to the value of bitcoin by investing primarily in front month bitcoin futures on CME. The sub-fund does not invest directly in bitcoin and does not receive bitcoin from Bitcoin Futures on CME”, Samsung Asset Management specified.
ETFs are a type of price-tracking commercial contract concluded by two parties. Both parties agree to buy or sell assets at a predetermined price at a later date.
When the smart contract ends, the price of the underlying asset of the ETF can – more or less – no longer influence that contract and one party ends up making a profit, a report by CoinDesk had previously stated.
The goal of Samsung’s Decision is to expose the masses to Bitcoin and its use as an investment and fintech tool.
At the time of writing, The Value of Bitcoin was $18,200 (roughly Rs.14.8 lakh).
The first bitcoin futures ETF was listed on the New York Stock Exchange on October 19, 2021.
The development is an indicator of Samsung’s inclination to explore the potential of the crypto sector.
Meanwhile, this is not the first Web3 friendly Initiative for the South Korean conglomerate.
In August of last year, reports claimed it might launch its own crypto exchange this year in 2023.
In June 2022, Samsung also moved Bitcoin mining chips in the experimental production phase. There are 3nm chips allegedly about 23 percent to 45 percent more efficient than chips made on previous nodes.
