On The Hong Kong Exchange, Samsung Asset Will Offer A Blockchain ETF
The Samsung Group’s investment arm announced on Thursday that it plans to list a blockchain exchange-traded fund on the Hong Kong Exchange (HKEX) in the first half of this year. It is the first ETF to list in Asia that tracks cryptocurrency and blockchain technology firms.
The asset management bought a 20% stake in US ETF sponsor Amplify Holding Company LLC in late March, prompting the listing. Through a $30 million transaction, Samsung Asset Management has gained exclusive access to Amplify goods across Asia.
The ETF sponsor, situated in Illinois, is known for ETFs like BLOK, or Amplify Transformational Data Sharing ETF, which invests at least 80% of its net assets in equity securities of blockchain businesses.
Silvergate Capital, a crypto payment platform, Nvidia, a crypto mining graphics processing unit (GPU) manufacturer, Galaxy Digital Holdings, Coinbase Global, a crypto exchange platform, and the Chicago Mercantile Exchange (CME) Group are among the companies on the list. The structure of the ETF slated to list on the HKEX will be identical to that of BLOK.
Samsung Asset Management plans to launch the new ETF alongside its five existing HKEX ETFs
HKEX ETFs track global semiconductors, FANG+ (Facebook, Apple, Netflix, Google (Alphabet) and other companies), Asia-Pacific REITs, Chinese internet enterprises, and crude oil.
BLOK includes crypto-tracking ETFs including Purpose Bitcoin ETF and 3IQ Coinshares Bitcoin ETF, as well as crypto-tech firms and trading platforms. The new ETF will be Asia’s first public blockchain ETF that contains cryptocurrencies, and it will debut on the Hong Kong stock exchange. However, due to the country’s cryptocurrency investment restrictions, it will not be listed on the Korean stock exchange in the foreseeable future.
Amplify’s other flagship ETFs may be listed in the Korean and international markets by the Korean investment firm. According to a Samsung executive, the asset manager is considering whether to issue DIVO, or Amplify CWP Enhanced Dividend Income ETF, in Korea or Hong Kong.
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