• Samsung Asset Management has received approval to list its Bitcoin futures ETF on the Hong Kong Stock Exchange.
• The listing is set to happen on January 13 and the ETF will primarily invest in CME Bitcoin Futures.
• The Hong Kong government is taking steps to transform the city into a global cryptocurrency hub.
The cryptocurrency industry is continuing to make strides towards mainstream adoption with the news that Samsung Asset Management has been approved to list its Bitcoin futures Exchange-Traded Fund (ETF) on the Hong Kong Stock Exchange. The listing will take place on January 13, 2021 and will be the first of its kind in the region.
The ETF, known as the Samsung Bitcoin Futures Active exchange-traded fund, will invest primarily in Bitcoin futures products that are traded on the Chicago Mercantile Exchange (CME). It is expected to generate returns that are similar to spot Bitcoin. In addition, it has been confirmed that some of the ETF investments will be in CME Micro-Bitcoin Futures.
Park Seong-jin, the head of Samsung Asset Management in Hong Kong, commented on the listing: “Hong Kong is the only market in Asia where Bitcoin futures ETFs are listed and traded in the institutional market. It will be a new option for investors who are interested in Bitcoin as a competitive product that reflects their experience in risk management.”
The government of Hong Kong is also actively supporting the cryptocurrency industry. Paul Chan, Hong Kong’s Financial Secretary, recently spoke at the Hong Kong Web3 Innovator Summit and discussed the need for laws to set up a licensing system for virtual asset service providers. He said: “We need to establish a comprehensive licensing system to regulate the activities of virtual asset trading platform operators, custodians and other service providers.”
The listing of the Samsung Bitcoin Futures ETF is another major step forward for the cryptocurrency industry. It is a sign that more traditional financial institutions are beginning to recognize the potential of digital assets. It also indicates that the cryptocurrency regulatory framework in Hong Kong is becoming increasingly robust, which could attract more businesses to the region.
With the listing of Samsung’s Bitcoin futures ETF, investors will now have access to a regulated and institutional-grade product that can help them gain exposure to the cryptocurrency markets. This could be a major turning point for the industry as it further legitimizes digital assets and encourages further investment in the space.