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Samsung Asset Management launches first blockchain-focused ETF in Hong Kong as technology grows beyond cryptocurrencies
- The Hong Kong arm of Samsung Asset Management will list the first ETF in Hong Kong that invests in blockchain-related companies
- The ETF, which has raised US$12 million from investors, will also invest in companies that deal in cryptocurrencies
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Samsung Asset Management has launched a blockchain-focused exchange-traded fund, the first of its kind in Hong Kong, which will track companies involved in the field including cryptocurrencies.
The company has raised US$12 million from institutional investors for its Samsung Blockchain Technologies ETF, which will trade under the stock code “3171” from June 23, said Terence Ling, head of ETF distribution at Samsung Asset Management (HK).
“The application of blockchain technologies is very wide and is not limited to cryptocurrencies. We believe that its adoption will widen to 80 per cent of the world’s population by 2030 from less than 1 per cent today,” said Ling.
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The ETF will not invest directly in cryptocurrencies like bitcoin, ether and other digital tokens, the most common use of blockchain, which are traded by investors looking to profit from the rise and fall in their values.
But blockchain has evolved to become the backbone for many other transactions tied to the real economy, such as trade finance between banks, and exporters and importers. Central banks, including those in Hong Kong and China, are also developing blockchain-based digital currencies to facilitate settlement of cross-border trade, insurance and bonds.
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