Samsung Asset Management (SAMHK), a Hong Kong-based subsidiary of Samsung’s investment arm, is launching a blockchain-themed exchange-traded fund (ETF).
On Thursday, the firm announced that it aims to debut its Samsung Blockchain Technologies ETF on the Hong Kong Stock Exchange on 23rd June.
According to the fund prospectus, the ETF aims to generate long-term capital growth by investing in stocks of companies actively involved in developing and implementing blockchain technologies. The fund will put its money into blockchain-related research and development companies, data suppliers, industry investment businesses, and other companies.
SAMHK’s portfolio management staff will oversee the ETF’s composition, weeding out companies with “little market capitalization or low trading volume.” The company says the Samsung Blockchain Technologies ETF is a sub-fund of the Samsung ETFs Trust, a Hong Kong-based umbrella unit trust.
Robust Future for Blockchain-Related Applications
SAMHK describes the new investment product as the “first-ever worldwide blockchain-related ETF in Hong Kong and Asia” in its announcement.
SAMHK’s head of ETF and passive investing, Carmen Cheung, noted the growing demand for blockchain-based applications and predicted the industry’s future growth, saying:
“As our digital world evolves, data processing and storage demand will increase. Blockchain technologies will continue to be widely employed in various industries to increase data efficiency, security, and access time. It is one of the upcoming digital transformation trends that we see.”
SAMHK is one of Samsung Asset Management’s global subsidiaries, a wholly-owned subsidiary of the Samsung Group. Samsung Asset Management was one of the first corporations in South Korea to reach the milestone of 100 trillion Korean won (79 billion USD) in assets under management in 2011, according to official company data.
Samsung Asset Management purchased a 20% ownership investment in Amplify Holding Company, the United States’ ETF sponsor, in March 2022, reportedly becoming the company’s second-largest shareholder.
Samsung Venturing in Crypto
In recent years, the Samsung Group has been experimenting with blockchain and cryptocurrencies, facilitating crypto transactions on its flagship Samsung smartphones and investing in key crypto wallets.
In recent years, the Samsung Group has been experimenting with blockchain and cryptocurrencies, facilitating crypto transactions on its flagship Samsung smartphones and investing in key crypto wallets. The South Korean IT behemoth has also been experimenting with NFTs, announcing a smart TV lineup in January 2022 with an integrated NFT platform.
A blockchain is a peer-to-peer shared, distributed digital record that facilitates the efficient and safe transfer of information and property between users. Compared to traditional data storage, blockchain technologies offer increased security, transparency, and lower transaction costs.
The blockchain market is predicted to increase at a CAGR of 72.9 percent from 4.9 billion USD in 2018 to 227.9 billion USD in 2028. By 2027, blockchain can store data worth up to 10% of the world’s GDP equivalent value.
Because blockchain technology is rapidly growing, actively managed ETFs allow portfolio managers to capture investment opportunities with greater flexibility. The ETF will invest in blockchain-related enterprises worldwide, such as developers with investors, R&D, and beneficiaries.