Overview
• Samsung Asset Management is launching a bitcoin exchange-traded fund (ETF) in Hong Kong.
• The Samsung Bitcoin Futures Active ETF seeks to obtain a performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange.
• Hong Kong is seeking to become a major hub for the industry, with its first BTC-linked ETF having gone live last month.
Samsung Asset Management Launches Bitcoin ETF
Samsung Asset Management is launching a bitcoin exchange-traded fund (ETF), called the Samsung Bitcoin Futures Active ETF (3135:HK), in Hong Kong. This ETF seeks to obtain a performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME). According to Park Seong-jin, head of Samsung Asset Management’s Hong Kong branch, this product “is a new option for investors who are highly interested in Bitcoin”.
Hong Kong as Crypto Hub
Hong Kong’s financial secretary, Paul Chan, recently reiterated that commitment that the city will work to attract new businesses from all over the world and become a major hub for the crypto industry. The city’s first BTC-linked ETF, the CSOP Bitcoin Futures ETF, went live last month. This shows that despite recent market routs, Hong Kong still continues to support cryptocurrency adoption and investment opportunities.
Benefits of an ETF
An ETF offering for an investment represents a significant mainstream adoption milestone. Freed from the complexity behind the asset itself, institutional and retail investors can enjoy price exposure through a simple, regulated avenue. As such, Samsung’s offering in Hong Kong promises to further expand awareness about bitcoin and access to bitcoin exposure in the region.
Limitations of an ETF
However there are some drawbacks associated with using an Ethereum Trading Fund (ETF) instead of purchasing and self-custodying actual Bitcoins yourself which allows you access to all of its benefits including censorship resistance and sovereignty over your digital money investments.