In the first half of 2022, the Samsung Asset Management Company (SAMC) is set to launch a Blockchain exchange-traded fund (ETF). The fund index will be listed in the Hong Kong Stock market and will be the pioneer of its kind in Asia.
The news was released to the press by the Samsung Group. It is an indicator that the award-winning electronics manufacturer is strategizing to stay relevant as the world embraces Crypto and Blockchain technology.
What this Means for The Crypto and Blockchain Space
In the Crypto space, an ETF is an index that tracks the performance of a ‘basket’ of Digital Assets or stocks of Blockchain firms in a controlled environment structured like the traditional platforms Nasdaq. It is largely similar to a unit trust that most American investors are accustomed to.
The new SAMC Blockchain index will enable Crypto traders and prospective investors and stockholders in Blockchain companies to invest in multiple Cryptos and Blockchain companies. The investors will also be able to track and monitor market trends for the fund and decide whether to long sell or short sell.
An ETF fund will simplify Crypto and Blockchain investments, especially in the untapped Asian market, and accelerate the adoption of Digital Assets and blockchain.
Samsung Has Invested in a US-based ETF Manager
The launch of the Samsung ETF comes a few weeks after the company invested $30 million in Amplify Holdings Inc LLC. The company is based in Wheaton, IL, and specializes in offering ETF solutions to customers looking for capital preservation, growth, and income.
The US-based ETF sponsor offers financial instruments in sectors such as the Battery and Lithium sector, Online Retail, Inflation, and more which have potential for meteoric growth.
Regarding the Blockchain space, Amplify Holders offers the Transformative Data Sharing ETF, which uses the BLOK ticker. As of March 2022, the fund consists of 80% of blockchain companies’ securities such as Crypto Miners, Transactional Crypto platforms, and Private Blockchain.
The new SAMC process will be structured like the BLOK fund. According to the contract terms, SAMC will get the exclusive trading rights for Amplify Products giving Crypto and Blockchain investors in the Asia region an opportunity to access ETF products that would not be otherwise available in their markets.
The Blockchain ETF Product will not be Listed in South Korea, Yet
South Korea has stringent Crypto and Blockchain rules, and news such as the interception and confiscation of mining rigs have been hitting the headlines. For this reason, the SAMC will not list the BLOCK ETF in the Korean market. However, other non-restricted indices will be available for trade.