Samsung attempts the Bitcoin ETF route

Samsung asset management and ETFs have a history that goes way back.

The investment arm of the Korean communications house has always tried to go down the road of these financial instruments as a means to success. 

Is a Bitcoin ETF coming soon from Samsung?

Back at the beginning of the year, the Samsung Group Investment fund wanted to list a Bitcoin ETF by 2022. 

The instrument was to be listed on one of Asia’s major exchanges, namely the Hong Kong exchange. 

The news at the time of the event was reported by the Korea Economic Daily news agency, according to which the listing was to take place by June this year. 

In late March, the South Korean investment company acquired 20% of the ETF Amplify Holding Company LLC and the idea was to launch a new Bitcoin ETF similar to the same company’s BLOK fund. 

The ETF that served as an inspiration was an instrument that was listed in May last year and involves investing 80% of net assets in securities of companies related to blockchain development.

Block had holdings in Coinbase, MicroStrategy, Nvidia, SBI Holdings, and Galaxy Digital, and Samsung Asset Management’s (SAM) new fund would be quite similar to investments in stocks of similar background in the Asian market (generally not just Chinese).

History repeats itself but, following a significant opening of Hong Kong to the crypto world, this time the focus is on a Bitcoin-based ETF. 

CSOP Asset Management (Southern OPIN Asset Management Co. Ltd), Samsung Asset Management and Mirae Asset Global Investment Co. Ltd. have formally applied for permission to issue ETFs to retail investors on the Hong Kong Stock Exchange. 

The transactions will be invested in the CME Futures Bitcoin and Ethereum Futures Group, among others. 

The Securities and Futures Commission (SFC) is the conduit to list ETFs investing in Digital Gold and ETH futures traded on the Chicago Mercantile Exchange. 

Hong Kong intends to transform itself into a strategic hub for the cryptocurrency world and is organizing through more permissive rules and mass adoption to grow in this regard. 

Samsung Asset Management will allow investors to buy or sell Bitcoin without having to do so directly, but by going through an ad hoc fund. 

The applications of the three companies mentioned above, came as early as 31 October, that is, when the SFC chose to open up to retail investors trading ETFs related to digital assets (including Bitcoin).

The approvals, according to Su Cheen Chuah, a partner at the law firm Deacons, will take about three months for the SFC to thoroughly review. 

Samsung Asset Management applying for approval of its BTC ETF comes right on the heels of the FTX case but had been decided long ago and could bring new life to the Asian market.

Chris Pigott, head of Asian ETF services for Brown Brothers Harriman, believes the first Bitcoin ETF will be released by 2022, lastest January 2023.

The Hong Kong SFC stated:

“The city’s crypto ecosystem has made substantial progress over the past four years, laying the groundwork for retail investors.”