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Korean technology conglomerate Samsung is looking to beat its competitors in Hong Kong by offering a spot Bitcoin exchange-traded fund (ETF) for investors to gain better exposure to the leading cryptocurrency.
Watching Regulatory Developments Closely
Speaking in an interview with Bloomberg earlier this week, Sam Park, the Hong Kong chief executive for Samsung Asset Management, confirmed that the investment division is looking into launching a spot Bitcoin ETF that will be domiciled on the Hong Kong Stock Exchange. Park explained that they are closely monitoring the development of policies in the region and would prefer to launch an ETF there as quickly as possible.
Park added that Samsung Asset Management is interested in applying for and launching a spot Bitcoin ETF on the Hong Kong Stock Exchange.
However, their ability to get this done will depend significantly on the region’s crypto policies going forward. He also said that Hong Kong’s administrators had shown an interest in developing the region into a crypto hub, so the company is waiting closely to see how its policies will play out.
In the report, Bloomberg ETF Analyst Rebecca Sin also pointed out that Hong Kong is well-positioned to become the crypto gateway for the entire Asian continent. Sin added that spot Bitcoin and Ethereum products should be approved in Hong Kong by the end of the year, paving the way for a new wave of investment to enter the region soon enough.
Samsung has continued to expand its reach in Kong Kong’s crypto sector. This week, Samsung Asset Management Hong Kong launched the “Samsung Bitcoin Futures Active ETF” on Hong Kong’s bourse.
The ETF will track the spot price of bitcoin by investing in Bitcoin futures products listed on the Chicago Mercantile Exchange (CME). However, while the Fund will primarily invest in CME Bitcoin Futures, some of its capital will also be allocated to Micro-Bitcoin Futures.
As things stand, Hong Kong is the only Asian market where Bitcoin futures can be traded. And with Samsung now joining the fray, investment products such as the Hong Kong Crypto Futures ETF should see some competition.
A New Dawn For A Vibrant Region
The launch of a spot Bitcoin ETF is sure to bolster Hong Kong’s status. The region has been working hard to become a crypto hub, and a new investment product should help improve investor sentiment.
Last week, Hong Kong financial secretary Paul Chan explained that the region had received significant interest from crypto companies looking to set up their global headquarters in the region over the past two months. Industry firms and exchanges have also shown a willingness to expand their operations in Hong Kong and even list on the regional stock exchange.
Nevertheless, Chan pointed out that the authorities are looking to move forward in the safest and most rational way possible. He pointed out that the current market condition has made it especially necessary for regulators to understand how crypto works and only operate in a manner that encourages investor safety.
Hong Kong’s lawmakers have already passed legislation to set up a licensing system for crypto asset service providers. The new framework is designed to offer the same level of market recognition to crypto exchanges as the one currently available to traditional financial institutions. From there, they hope to provide more regulatory guidelines to govern the operation of companies in the space.