According to local media sources, Samsung Asset Management has been approved to list its Bitcoin (BTC) Futures Exchange Traded Fund (ETF) on the Hong Kong Stock Exchange by January 13.
The Hong Kong Securities and Futures Commission (SFC) announced intentions to permit ETF providers to offer futures contracts on its exchanges In order to give regular investors access to crypto assets on October 31.
By investing in Bitcoin futures products offered on the Chicago Mercantile Exchange, the exchange-traded fund (ETF) will track the current price of Bitcoin (CME). With some investments in the CME Micro-Bitcoin Futures, the ETF will predominantly invest in the CME Bitcoin Futures.
What Samsung’s action means to Hong Kong investors
Currently, Hong Kong is the only market in Asia where Bitcoin futures ETFs can be traded. The Hong Kong Crypto Futures ETF, which started trading in 2022 with a $70 million market cap, is now joined by the Samsung Bitcoin Futures ETF. Canada, the United States, Australia, and several European nations like Switzerland are additional global marketplaces.
Park Seong-jin, CEO of Samsung Asset Management, said:
“The Samsung Bitcoin ETF will be a new choice for investors who are interested in Bitcoin as a competitive product,”
Retail and institutional investors will have a new option to access Bitcoin thanks to this ETF listing, which might help draw more mainstream investors into the cryptocurrency industry. The ETF may appeal to investors searching for a means to invest in Bitcoin without purchasing and holding their own private keys due to Samsung’s reputation and brand strength.
Samsung’s action comes after Bitcoin’s price topped $18,000, signaling a potential increase in traders’ positive sentiment. The market for cryptocurrencies as a whole has recovered as other cryptocurrencies have done the same.
Samsung Asset Management Hong Kong Limited had $1.4 billion in assets under management in 2022, and the company’s well-known brand is still very active in the crypto market. The South Korean business, with a market capitalization of over $300 billion, claims a blockchain wallet, and its latest phone, the Galaxy S22, includes cryptocurrency preloaded.
The ETF is another sign that the international company wants to profit from the rising interest in cryptocurrency.