Samsung Asset Management Launches Bitcoin Futures ETF In Hong Kong

Samsung Asset Management Launches Bitcoin Futures ETF In Hong Kong

The investment giant has officially listed its Bitcoin Futures ETF on the Hong Kong stock exchange. HKEX is the only exchange in Asia where crypto ETFs can be traded on international markets.

Samsung Asset Management Hong Kong (SAMHK), the asset management subsidiary of South Korean multinational corporation Samsung, launched a Bitcoin exchange-traded fund (ETF) on the Hong Kong stock exchange (HKEX) on January 13. The “Samsung Bitcoin Futures Active ETF” was issued by the investment firm’s Hong Kong subsidiary following requests from institutional investors in the region. 

An exchange-traded fund, or ETF, is an investment security that is designed to track the price of an index, sector, commodity or other assets. The investment product offers clients the benefits of the underlying instrument without having direct exposure to the asset itself. ETFs can be traded on a stock exchange just like regular stocks

The Samsung Bitcoin Futures Active ETF will track the spot price of Bitcoin (BTC) by investing in Bitcoin futures products listed on the Chicago Mercantile Exchange (CME). The fund’s primary investments will be made in the CME Bitcoin Futures, with the rest going to CME Micro-Bitcoin Futures. Hong Kong is the only market in Asia where Bitcoin futures ETFs can be traded on international markets. The move comes as Hong Kong is preparing to become a global financial hub. 

Last month while speaking at a Web3 forum, Paul Chan, the Financial Secretary of Hong Kong said that the current status of the crypto market was not going to deter the city-state from its plans to establish itself as the go-to destination for crypto. After the onset of the Covid-19 pandemic, many crypto and financial firms left the state for Singapore due to its stringent policies. Now, the city is attempting to rebuild its reputation by introducing crypto-friendly regulations like issuing more licences for digital asset trading firms and exploring the potential for bringing the retail sector into the industry. 

Samsung’s Bitcoin futures ETF will be listed alongside CSOP Asset Management’s “Hong Kong Crypto Futures ETF” on HKEX, which went live late last month. 

Samsung Asset Management Launches Bitcoin Futures ETF In Hong Kong

In October, the Hong Kong Securities and Futures Commission (SFC) announced that it would allow listings of ETFs tracking the price of crypto asset-based futures, starting with Bitcoin and Ether. The regulatory authority also issued a set of guidelines for asset management companies to follow, which will require them to have a good track record of regulatory compliance and at least three years of experience managing ETFs and similar investment vehicles. The firms will only be allowed to list virtual asset (VA) futures traded on regulated futures exchanges, which will be subject to the issuing company proving that the instrument has adequate liquidity for operating as an ETF, and whether roll costs of the VA futures contract are manageable by the issuer. 

Other international markets where Bitcoin futures ETFs can be traded are the United States, Canada, Australia and Switzerland. 

Samsung timed the launch of its Bitcoin ETF to perfection as the crypto market is starting to get back to life. Earlier today, after facing months of uncertainty, the global cryptocurrency market regained its $1 trillion valuation for the first time in a year. Institutional giants like Samsung Asset Management, which has assets worth $207 billion currently under management, releasing Bitcoin ETFs is a sign that crypto assets are gaining popularity and relevance among traditional investors. 

On January 11, El Salvador, which became the first country to establish Bitcoin as legal tender, passed a landmark crypto bill that will see the Central American nation issue the world’s first sovereign bond backed by Bitcoin, dubbed the ‘Volcano Bond’.

At the time of writing, BTC is trading at $20,709 – up by 9% in the last 24 hours. 

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