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The ETF will seek to invest in stocks of blockchain-related companies, including developers with R&D, beneficiaries, and investors, around the world, a move that is aimed at achieving long-term capital growth.
The Hong Kong branch of Samsung Asset Management (SAMHK) has announced the launch of the first-ever global blockchain exchange-traded fund (ETF) in Asia. The local subsidiary of Samsung’s investment arm announced on Thursday that its Samsung Blockchain Technologies ETF will launch on the Hong Kong Stock Exchange on June 23, 2022.
The ETF will seek to invest in stocks of blockchain-related companies, including developers with R&D, beneficiaries, and investors, around the world, a move that is aimed at achieving long-term capital growth. The ETF will not track any tokens linked to blockchain or crypto companies.
SAMHK’s portfolio management team will reportedly oversee the ETF’s composition, and will be tasked with filtering out firms with “small market capitalization or low trading volume.” The Samsung Blockchain Technologies ETF is a sub-fund of the Samsung ETFs Trust, an umbrella unit trust established under Hong Kong law, the firm stated.
Head of ETF and passive investment at SAMHK, Carmen Cheung, highlighted the increasing demand for blockchain technology-based applications, and their impending growth in the industry in the near future.
“The demand for data processing and storage will increase with the evolution of our digital world. Blockchain technologies will further be widely used by different businesses to improve data efficiency, and security and shorten accessibility time. We see this as one of the future trends in digital transformation, “she stated.
The latest development comes just after Samsung Asset Management acquired a 20% equity stake in the United States’ ETF sponsor Amplify Holding Company in March 2022, reportedly making it the second-largest shareholder.
SAMHK is one of Samsung Asset Management’s Global subsidiaries, which is a wholly-owned subsidiary of the Samsung Group. According to official company data, in 2011, Samsung Asset Management became one of the first corporations in South Korea to reach the milestone of 100 trillion Korean won ($79 billion) in assets under management.
The Korean tech giant is no stranger to blockchain and the crypto market as it has been actively exploring the benefits of the blockchain as well as supporting crypto transactions on its flagship Samsung smartphones alongside investing in major crypto wallets.
Samsung NEXT, a multifaceted innovation category within Samsung, recently spearheaded a $10 million round by MachineFi Lab, alongside Draper Dragon Fund, and Jump Crypto. It also invested in Sky Mavis, the developer of the popular blockchain-based game Axie Infinity in 2021.
Samsung has also been experimenting with nonfungible tokens, launching a smart TV lineup with an integrated NFT platform in January this year.