Samsung Asset Management announces blockchain ETF launch in Hong Kong

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Hong Kong-based subsidiary of Samsung’s investment arm, Samsung Asset Management (SAMHK), is bringing a Blockchain-based exchange-traded fund (ETF). As per the official announcement, the company expects to launch its Samsung Blockchain Technologies ETF on the Hong Kong Stock Exchange.

The announcement said that “blockchain technologies have the merit of enhanced security, greater transparency, and reduced cost of the transaction.” 

According to the fund prospectus, the ETF aims to generate long-term capital growth by investing in stocks of companies specifically involved in developing and implementing blockchain technologies. The fund will put its money into blockchain-related research and development companies, data providers, industry investment firms, and other companies.

SAMHK’s portfolio management team will oversee the ETF’s composition, weeding out companies with “small market capitalization or low trading volume.” The Samsung Blockchain Technologies ETF is a sub-fund of the Samsung ETFs Trust.

SAMHK describes the new investment product as the “first-ever global blockchain-related ETF in Hong Kong” and Asia.

Fast-moving Blockchain technology leads to Samsung Blockchain Technologies ETF

According to the data by Insight Partners, the market size of the blockchain is expected to grow from $4.9 billion to $227.9 billion in 2028, with a CAGR of 72.9%. Moreover, World Economic Forum says that technology has the potential to hold data as much as 10% of the world’s GDP equivalent value in the next 15 years. 

With the fast-moving blockchain technology, the actively managed ETF brings portfolio managers to the industry by opening flexible opportunities.

Carmen Cheung, head of ETF and passive investment at Samsung Asset Management, Carmen Cheung noted the increasing demand for blockchain technology-based applications, forecasting the industry’s growth in the future. He stated that the Blockchain technologies “will further be widely used for different businesses to improve data efficiency, security and shorten the accessibility time. We see this as one of the future trends on digital transformation.”

The technology giant aims to integrate an NFT platform on its smart TVs and is a known name in the cryptocurrency world. In January, the American branch of Samsung floated a virtual store on Decentraland.

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