Samsung Asset Management is launching a bitcoin exchange-traded fund (ETF) in Hong Kong.
The Samsung Bitcoin Futures Active ETF (3135:HK) seeks a return similar to that of spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME), according to a report by Fortune Korea. Cointelegraph also reported the news on Thursday.
“Samsung Bitcoin Futures Active ETF is a competitive product that reflects Samsung Asset Management’s knowledge of futures-based long-term ETFs and risk management expertise,” said Park Seong-jin, branch director of Samsung Asset Management in Hong Kong, according to a translated version. of the fortune korea report. “It’s a new option for investors who are very interested in Bitcoin.”
The latest defeat of the crypto market has not deterred Hong Kong from looking to become a major hub for the industry. His financial secretary, Paul Chan, recently reiterated that commitment, adding that Hong Kong will work to attract new business from around the world. The city’s first BTC-pegged ETF, the CSOP Bitcoin Futures ETF, launched last month.
An ETF offering for an investment represents a major mainstream adoption milestone. Freed from the complexity behind the asset itself, institutional and retail investors can enjoy price exposure through a simple and regulated pathway. As such, Samsung’s Hong Kong offering promises to further expand bitcoin awareness and access to bitcoin exposure in the region.
But that doesn’t come without intrinsic drawbacks. Although investors can get exposure to fluctuations in the fiat price of the underlying asset through an ETF, they will not own that commodity 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 censorship-resistant, sovereign digital money if they choose to buy and hold BTC themselves, which isn’t rocket science, thanks to some great resources.
