• Samsung Asset Management is launching a Bitcoin ETF in Hong Kong.
• The ETF seeks to obtain performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME).
• Paul Chan recently reiterated that Hong Kong will work to attract new businesses from all over the world and become a major hub for the industry.
Samsung Launching Bitcoin ETF
Samsung Asset Management is launching a bitcoin exchange-traded fund (ETF) in Hong Kong, called Samsung Bitcoin Futures Active ETF (3135:HK). The ETF seeks to obtain performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME).
Hong Kong Becoming Crypto Hub
Paul Chan, Financial Secretary of Hong Kong, recently reiterated that commitment, adding that Hong Kong will work to attract new businesses from all over the world and become a major hub for the industry. Last month, CSOP Bitcoin Futures ETF went live in Hong Kong –– its first BTC-linked ETF.
Advantages of an ETF
An ETF offering for an investment represents a significant mainstream adoption milestone as investors can get exposure to fiat price fluctuations of the underlying asset through an ETF with ease and regulation. As such, Samsung’s offering in Hong Kong promises to further expand awareness about bitcoin and access to bitcoin exposure in the region.
Drawbacks of an ETF
Although investors can get exposure to fiat price fluctuations of the underlying asset through an ETF, they won’t possess that product itself — being gold or BTC — which means they can only take advantage of Bitcoin’s true value proposition by purchasing and self-custodying it themselves.
Conclusion
The latest crypto market rout hasn’t deterred HongKong from seekingto become a major hub forthe industry and Samsung’s offeringpromises toreally expand access toboth understandingand gettingexposuretoBitcoinin theregion.But investorsmust be awareofits drawbacksin order tounderstand howtheycan takeadvantageofBitcoinstruly revolutionaryvalueproposition