Samsung Asset Management to Launch a Blockchain ETF

The local subsidiary of the investment division of Samsung in Hong Kong recently made an announcement. Samsung Asset Management will launch an exchange-traded fund (ETF), which will be focused on blockchain technology. This means that the ETF would target companies that are working in the blockchain industry.

A Blockchain ETF for Samsung

The Samsung Blockchain Technologies ETF would be launched by the company on the Hong Kong Stock Exchange. The announcement on Tuesday dictated that the ETF would be available for trading, starting from June 23rd. The primary purpose behind launching the ETF is to invest in stocks of blockchain companies for achieving long-term growth.

The ETF will target those companies that are highly active in the adoption and development of blockchain technologies. Some of the companies that the ETF has targeted include those that are doing research and development in the blockchain space, along with industry investment firms, data providers, and more.

Samsung Asset Management’s portfolio management team will be responsible for managing the ETF in question. The team has been given the responsibility of choosing companies that have low trading volumes and a small market capitalization. In accordance with the law in Hong Kong, the company had first established an umbrella unit trust by the name of Samsung ETF Trust.

Thus, the Samsung BlockchainTechnologies ETFs will be considered a subsidiary fund. The announcement by the company said that the investment product was the first blockchain-related ETF to be introduced in Asia. The head of passive investment and the ETF at Samsung Asset Management in Hong Kong (SAMHK), Carmen Cheung said that with the world becoming digital, there would be greater demand for data storage and processing.

Therefore, there would be greater demand for blockchain technologies amongst different businesses because it can help them in improving data security and efficiency and would also cut down the accessibility time. He stated that this was one of the future trends that would become popular, as digital transformation continues to happen.

Samsung’s Interest in Crypto and Blockchain

One of the first companies in South Korea that managed to cross the $79 billion mark back in 2011 in terms of assets under management is Samsung Asset Management. Since then, it has been working on growing its presence globally and it bought an equity stake of 20% in Amplify Holding Company recently. This made it the company’s second-largest shareholder.

In recent years, there has been a great deal of interest shown in blockchain and the crypto sector by the Samsung Group. Crypto transactions have been supported on the company’s smartphones, which has allowed it to compete with some of the top crypto wallets. Moreover, the tech firm has also expressed an interest in non-fungible tokens (NFTs). As a matter of fact, the company planned on launching a smart TV series integrated with an NFT platform and it went through with its plans in the start of the year. This indicates just how committed it is to make investments in this space.

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