Hong Kong-based Samsung Asset Management (SAMHK), a local subsidiary of Samsung’s investment arm, is moving forward with a blockchain-themed exchange-traded fund (ETF).
SAMHK announced on Thursday that the firm expects to launch its Samsung Blockchain Technologies ETF on the Hong Kong Stock Exchange on June 23.
The ETF seeks to achieve long-term capital growth by investing in stocks of companies actively involved in the development and adoption of blockchain technologies, reads the fund prospectus. The fund will invest in blockchain-related research and development firms, data providers, industry investment firms, and more.
The composition of the ETF will be managed by SAMHK’s portfolio management team, which is responsible for filtering out firms with “small market capitalization or low trading volume”. The Samsung Blockchain Technologies ETF is a sub-fund of the Samsung ETF Trust, an umbrella entity trust established under Hong Kong law, the firm said.
According to the announcement, SAMHK is positioning the new investment product as “the first global blockchain-related ETF in Hong Kong” as well as Asia.
Carmen Cheung, Head of ETFs and Passive Investments at SAMHK, said the growing demand for blockchain technology-based applications is predicting the industry’s future growth, saying:
“The demand for data processing and storage will accelerate with the evolution of our digital world. Blockchain technologies will be widely used for various businesses to improve data efficiency, security and reduce access times. We see this as one of the future trends on digital transformation.”
SAMHK is one of several global subsidiaries of Samsung Asset Management, a wholly owned subsidiary under the umbrella of the Samsung Group. According to official company figures, Samsung Asset Management was one of the first companies in South Korea to cross the milestone of 100 trillion Korean won ($79 billion) in assets under management in 2011.
The ETF launched shortly after Samsung Asset Management acquired a 20% equity stake in United States ETF sponsor Amplify Holding Company in March 2022, reportedly becoming the second largest shareholder.
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Samsung Group has been actively exploring the blockchain and cryptocurrency industry in recent years, supporting crypto transactions on its flagship Samsung smartphone and investing in major crypto wallets. The South Korean tech giant is also experimenting with non-fungible tokens, launching a smart TV lineup with an integrated NFT platform in January 2022.