Samsung Asset Management, a subsidiary arm of Samsung Life Insurance based in Korea, has recently introduced a blockchain-focused ETF (exchange-traded fund), in Hong Kong that will primarily track companies involved in the blockchain and cryptocurrencies.
Terence Ling, ETF distribution head at Samsung Asset Management (HK), said that the company has bagged $12 million from several institutional investors for its Blockchain Technologies exchange-traded fund, which is going to trade under the stock code “3171” from 23 June 2022.
He further said that blockchain technologies have a wide range of applications and are not limited to cryptocurrencies only. The company firmly believes that blockchain technologies will be adopted by nearly 80% of the world’s population by 2030 from less than 1% today.
Norman Chan, portfolio manager at Samsung Asset Management, Hong Kong, said that the ETF portfolio will focus on the stocks listed in Europe, the US, and Japan in the beginning.
The top ten holdings of the blockchain-focused exchange-traded fund will primarily include the United States-listed exchange CME Group, which facilitates bitcoin futures contracts. The company will also invest in several other crypto-related ETFs such as Proshares BTC Strategy ETF that is listed in New York.
The ETF is looking forward to investing in approximately 60 companies and will first debut on the HK stock exchange at a listing price of $2. However, it will be traded in HK dollars in lots of 50 units.
Samsung Asset Management's (HK) blockchain-focused ETF will be the sixth ETF in Hong Kong, said Ling.
According to a credible source, the market size of blockchain is anticipated to reach $228 billion by 2028, from $4.9 billion in 2021. Furthermore, central banks including those in Hong Kong are developing blockchain-based currencies to offer settlement of cross-border trade, bonds and insurance.