Samsung Asset Management is launching a bitcoin exchange-traded fund (ETF) in Hong Kong.
The Samsung Bitcoin Futures Active ETF (3135:HK) seeks to achieve similar performance to the BTC spot by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME), according to a report from Fortune Korea. Cointelegraph also reported the news earlier on Thursday.
“Samsung Bitcoin Futures Active ETF is a competitive product that reflects the expertise and risk management experience of Samsung Asset Management’s long-term futures-based ETFs,” said Park Seong-jin, head of Samsung Asset Management’s branch in Hong Kong, according to a translated version. of Fortune Korea report. “It’s a new option for investors who are very interested in Bitcoin.”
The latest crypto market rout has not deterred Hong Kong from seeking to become a major hub for the industry. Its financial secretary, Paul Chan, recently reaffirmed this commitment, adding that Hong Kong will strive to attract new businesses from around the world. The city’s first BTC-linked ETF, the CSOP Bitcoin Futures ETF, uploaded last month.
An ETF offering for an investment represents an important step towards mainstream adoption. Freed from the complexity of the asset itself, institutional and retail investors can gain price exposure through a simple, regulated avenue. As such, Samsung’s offering in Hong Kong promises to further increase bitcoin awareness and access to bitcoin exposure in the region.
But this is not without intrinsic drawbacks. While investors may gain exposure to fiat price fluctuations of the underlying asset through an ETF, they will not own that product itself, be it gold or BTC. And that’s a subtle but very important difference, especially for bitcoin. Investors can only take advantage of Bitcoin’s true value proposition of a sovereign, censorship-resistant digital currency if they choose to buy and self-custody BTC themselves – which isn’t rocket science , thanks to excellent resources.
