Samsung Asset Management Company, the parent organization of the Popular Korean tech firm, is planning to list a blockchain exchange-traded fund (ETF). The new ETF will be developed based on Amplify’s BLOK and is slated for launch on the Hong Kong Exchange within the first half of 2022. Asia’s first blockchain ETF will track several companies and firms designing and developing blockchain technology and services.
As the blockchain industry continues to affect mainstream businesses, Samsung joined hands with Amplify Holding to list a new blockchain ETF. The U.S based ETF sponsor signed a $30million acquisition agreement with the Korean company for 20% of its equity stakes. As per this agreement, SAMC will secure exclusive rights to launch Amplify ETFs in the Asian markets.
Amplify Holding is well-known for its ETF listings, such as BLOK and Amplify Transformational Data Sharing ETF. The company is actively following the blockchain industry and invested nearly 80% of its holdings in equity shares of blockchain firms. Silvergate Capital, Nividia, Galaxy Digital Holdings, and Coinbase are some companies where Amplify holds stakes.
The reports suggest that the SAMC blockchain ETF’s format will be similar to the BLOK ETF. Moreover, this is the first time a blockchain ETF will be introduced to the Asian Markets. The initial listing will be on the Hong Kong Exchange, and further expansions to other markets will be decided based on the ETFs reception.
Unfortunately, SAMC is currently unable to list the blockchain ETF on the Korean Stock Exchange. South Korea’s cryptocurrency regulations are currently hindering the launch of the new product in the company’s native country. However, SAMC will be marketing some of the other products from Amplify Holdings in Korea and other Asian markets.
The asset manager also has plans to register this new product under Samsung Group’s name. In that case, the ETF’s arrival in the Korean market would likely be quickened.
It is not the first time a mainstream company has seemed interested in blockchain-based ETFs. Recently, Fidelity Investments launched two ETFs to exploit the current demand for cryptocurrencies and metaverse. These products were intended to explore the opportunities of the fastly emerging DeFi markets from TradFi.
However, the scope of these ETFs was exclusively limited to the American and the European markets. Now, this initiative by SAMC will expose the wider markets of Asia to web3 and blockchain technologies.