• Samsung Asset Management is launching a bitcoin exchange-traded fund (ETF) in Hong Kong.
• The ETF seeks to obtain a performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME).
• Hong Kong’s financial secretary Paul Chan recently reiterated that the city will work to attract new businesses from all over the world, including cryptocurrency firms.
Samsung Launches Bitcoin ETF in Hong Kong
Samsung Asset Management has announced the launch of a bitcoin exchange-traded fund (ETF) in Hong Kong. The Samsung Bitcoin Futures Active ETF seeks to achieve a price performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange.
Features of the ETF
The ETF is designed as an attractive product for investors interested in Bitcoin, and it combines Samsung Asset Management’s long-term futures-based ETF know-how and risk management experience. It provides investors with access to price exposure through a simple, regulated avenue.
Hong Kong Committed To Cryptocurrency Firms
Hong Kong’s commitment to becoming a major hub for cryptocurrency businesses was recently reiterated by its financial secretary Paul Chan, who said that the city will work to attract new businesses from all over the world. This was demonstrated by its first BTC-linked ETF—the CSOP Bitcoin Futures ETF—which went live last month.
Drawbacks of Investing Through an ETF
While investing through an ETF allows investors access to fiat price fluctuations of the underlying asset, they do not possess or own that product itself—in this case, Bitcoin. Therefore, investors cannot take advantage of Bitcoin’s true value proposition of censorship-resistant and sovereign digital money if they choose to invest through an ETF instead of owning and self-custodying BTC themselves.
The launch of Samsung’s offering promises to further expand awareness about Bitcoin and access to bitcoin exposure in Hong Kong; however, it does not come without drawbacks for those who are looking for full ownership over their investments.