Samsung Asset Management to launch blockchain ETF in Hong Kong

cointelegraph.com:

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 firm 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 stocks of companies actively involved in the development and adoption of blockchain technologies, the fund prospectus reads. The fund will invest in blockchain-related research and development firms, data providers, industry investment firms and others.

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

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

Carmen Cheung, head of ETF and passive investment at SAMHK, notd the increasing demand for blockchain technology-based applications, forecasting the industry’s growth in the future, stating:

SAMHK is one of several global subsidiaries of Samsung Asset Management, a wholly-owned subsidiary under the umbrella of the 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 assets under management in 2011.

The ETF launch comes soon after Samsung Asset Management acquired a 20% equity stake in the United States’ ETF sponsor