Bulletpoints Summary:

• Samsung Asset Management is launching a Bitcoin ETF in Hong Kong.
• The ETF seeks to obtain performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME).
• The offering represents a significant mainstream adoption milestone, as it allows investors to get exposure to BTC price fluctuations through a simple, regulated avenue.

Samsung Launches Bitcoin ETF in Hong Kong

Samsung Asset Management has announced the launch of its new bitcoin exchange-traded fund (ETF) in Hong Kong, the Samsung Bitcoin Futures Active ETF (3135:HK). This move is part of the city’s effort to become a major hub for the crypto industry.

Performance

The ETF aims to obtain similar performance as that of spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME). It is designed to provide investors with a competitive product that reflects Samsung Asset Management’s long-term futures-based ETF know-how and risk management experience.

Mainstream Adoption Milestone

The latest crypto market rout hasn’t deterred Hong Kong from seeking to become a major hub for the industry. This offering marks an important mainstream adoption milestone, as it allows investors to get exposure to fiat price fluctuations of BTC through an easy and regulated avenue.

Drawbacks

However, this does not come without certain drawbacks. Although investors can get exposure to fiat price fluctuations of the underlying asset through an ETF, they won’t possess that product itself –– such as gold or bitcoin. Therefore, investors can only take advantage of Bitcoin’s true value proposition if they choose purchase and self-custody BTC themselves –– which isn’t rocket science but requires some technical knowledge.