Samsung Asset Management, an investment arm of Samsung Group, is set to launch Asia’s first blockchain ETF in the first half of 2022 on the Hong Kong Stock Exchange. It will be the first of its kind Asia-based ETF that includes crypto.
This project comes after Samsung Asset Management acquired Amplify Holding Company, a US ETF provider, in late March. The South Korean company took a 20% stake through a special purpose vehicle. Samsung Asset Management is Amplify’s exclusive ETF partner in Asia. Its Asia-based ETF will closely resemble Amplify’s BLOK ETF which invests 80% of its net assets into equity securities of blockchain-based companies. BLOK ETF’s top holdings are Microstrategy, Coinbase, SBI Holdings, Nvidia, and Galaxy Digital. BLOK also covers crypto-based ETFs, which include 3IQ Coinshares Bitcoin ETF and Purpose Investment’s Bitcoin ETF.
A Samsung Asset Management executive revealed that the company is planning to list Amplify’s best products at home and abroad. He highlighted that interest in dividends is growing due to a rise in US interest rates. As such, Samsung Asset Manager is looking at additional listings such as Amplify CWP Enhanced Dividend Income ETF (DIVO ETF) in Korea and Hong Kong. The smartphone giant has already listed five other products under its name in Hong Kong, like semiconductors, REITs, crude oil ETFs and China Internet.
Market experts say blockchain-based ETFs got a boost following regulatory approval of several funds from major asset managers in recent months. The asset managers are eager to capture the upside of crypto’s speculative fervor. Blockchain ETFs have risen as institutional gateways to investing in the thriving crypto industry, despite the volatility of digital assets.