Samsung Asset Management launches blockchain ETF in Hong Kong

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).

The company expects to launch its Samsung Blockchain Technologies ETF on the Hong Kong Stock Exchange on June 23, SAMHK announced on Thursday.

The ETF seeks to achieve long-term capital growth by investing in shares in companies that are actively involved in the development and introduction of blockchain technologies, the fund prospectus states. The fund will invest in blockchain-related research and development companies, data providers, industrial investment companies and others.

The ETF’s composition will be managed by SAMHK’s portfolio management team, responsible for filtering out firms with “small market value or low trading volume.” The Samsung Blockchain Technologies ETF is a sub-fund of the Samsung ETFs Trust, an umbrella fund established under Hong Kong law, the company said.

According to the announcement, SAMHK positions the new investment product as the “first global blockchain-related ETF ever in Hong Kong” as well as Asia.

Carmen Cheung, Head of ETFs and Passive Investments at SAMHK, noted the growing demand for blockchain technology-based applications, and predicted industry growth in the future, stating:

“The demand for computing and storage will accelerate the development of our digital world. Blockchain technologies will also be widely used for various businesses to improve data efficiency, security and shorten availability. We see this as one of the future trends in digital transformation.”

SAMHK is one of several global subsidiaries of Samsung Asset Management, a wholly owned subsidiary under the umbrella of Samsung Group. According to official company data, Samsung Asset Management was one of the first companies in South Korea to surpass a milestone of 100 trillion Korean won ($ 79 billion) in total assets in 2011.

The ETF launch comes shortly after Samsung Asset Management acquired a 20% stake in US ETF sponsor Amplify Holding Company in March 2022, and reportedly became the second largest shareholder.

Related: ‘Bitcoin-themed’ ETF lists on the Italian stock exchange Borsa Italiana

Samsung Group has been actively exploring the blockchain and cryptocurrency industries in recent years, supporting cryptocurrencies on its flagship Samsung smartphones and investing in large cryptocurrencies. The South Korean technology giant has also experimented with non-fungible tokens, launching a smart TV series with an integrated NFT platform in January 2022.