A subsidiary of the Samsung Life Insurance, owned by Samsung Group, has announced plans to launch its first Bitcoin ETF. Samsung Asset Management said that the Samsung Bitcoin ETF will give Hong Kong investors access to Bitcoin-related services.
Bitcoin ETFs or exchange-traded funds are created as a pool that comprises Bitcoin-related assets and linked to Bitcoin prices that can be traded on traditional stock exchanges.
The essence of Bitcoin ETFs is to allow investors to make a profit by tracking the prices of Bitcoin without directly investing in Bitcoin. Bitcoin ETFs make this possible and are currently tradable on the Chicago Mercantile Exchange.
Park Seong-jin, Head of Samsung Asset Management’s Hong Kong branch explained that the Bitcoin ETF product is part of the company’s long-term vision related to its experience in risk management. “It is a new option for investors who are highly interested in Bitcoin,” he added.
Samsung, Hong Kong and Crypto Capital Expansion
Samsung is one of the Web2 companies that has shown interest in crypto and its advancement. It’s evident in the recent ranking done by Blockdata where the company was named the number one firm that has invested in more blockchain and crypto startups between September 2021 and mid-June 2022.
According to the research, Samsung has raised $979 million in 13 startups while Alphabet, BlackRock, and Morgan Stanley have raised $1.51 billion, $1.17 billion, and $1.15 billion with 4, 3, and 2 startups respectively.
Then in June 2022, Samsung launched a crypto wallet that allows users of its Galaxy phone to hold cryptocurrencies while organizing their digital keys and other payment items.
For Hong Kong as a nation, cryptocurrencies have become a part of its development. In December last year, Hong Kong released its first crypto ETF which makes it easier for retail investors to trade digital assets.
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