When the ETF goes live, it will offer diversification and a means for investors to meet their demands.
Samsung Asset Management, the investment arm of the financial services giant, has announced its plans to launch a Bitcoin Exchange Traded Fund (ETF) product, giving investors a new way to gain exposure to the digital currency. As reported by Cointelegraph, the proposed product, dubbed the “Samsung Bitcoin Futures Active ETF” is billed to float on January 13 and will be trading on the Hong Kong Stock Exchange.
The proposed product will offer both retail and institutional investors in Hong Kong an avenue to invest in the nascent asset class. Per the report, the Bitcoin Futures ETF will invest in Bitcoin futures products listed on the Chicago Mercantile Exchange (CME). Two of these products include the CME Bitcoin Futures and the CME Micro Bitcoin Futures.
Hong Kong has continued to gain a reputation as one of the top financial epicenters in the Asian region. The country is the only location in the whole of Asia where investors can gain exposure to Bitcoin Futures ETF. This rare scenario now places at par with other regions including the United States, Canada, and Switzerland amongst others.
The Samsung Bitcoin Futures ETF will go on to complement the Hong Kong Crypto Futures ETF which made its debut in the region last year and has gained traction, riding on the $70 million it raised prior to its listing for trading.
“Hong Kong is the only market in Asia where Bitcoin futures ETFs are listed and traded in the institutional market. It will be a new option for investors who are interested in Bitcoin as a competitive product that reflects their experience in risk management,” said Park Seong-jin, head of Samsung Asset Management Hong Kong.
When the ETF goes live, it will offer diversification and a means for investors to meet their demands.
Samsung Bitcoin Futures: Testament to Hong Kong’s Crypto Stance
In the early days of crypto, many startups trailing the blaze in the industry moved their headquarters to Hong Kong as the region was considered a vibrant place for the ecosystem. Over time, the regulatory approaches got stricter and firms including the now-bankrupt FTX left the shores of the country to set up camp elsewhere.
In 2022, the Hong Kong financial regulator decided to ease up on some of its strict market entry yardsticks and unveiled plans to scrap the $1 million crypto trading capital that was required to be a trader in the industry. With this move, retail investors could now join the ecosystem without much hindrance.
By permitting Samsung Asset Management to float the Bitcoin Futures product that is useful to both retail and institutional investors, the region can be said to be making good on its promises. Meanwhile, Samsung as a brand has continued to show unwavering support for Web 3.0 and innovative solutions that are powered by blockchain technology.
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