Samsung’s investment arm keen on offering spot digital currency ETFs to Hong Kong investors

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Samsung Asset Management has expressed a desire to launch a pure-play BTC exchange-traded fund (ETF) in Hong Kong, depending on the swings of the regulatory pendulum.

According to a Bloomberg report, the investment arm of the consumer electronics giant launched its futures-based Samsung Bitcoin Futures Active ETF on January 13. The investment arm confirmed that it was scanning the regulatory horizon for the appropriate time to launch a spot-based ETF.

Sam Park, CEO of Samsung Asset Management in Hong Kong, expressed optimism that the city-state will soon give the green light for spot-based ETFs, given its previous statement of “developing a crypto hub.” Park added that the approval for the pure-play ETFs could come before the end of the year, depending on the success of the futures iteration.

Samsung‘s ETF rose by 4.2% within hours of the listing amid brimming optimism that a spot-based version would follow in the coming months. The move is coming on the heels of the Hong Kong Stock Exchange opting to offer investors exposure to digital assets with a measure of risk mitigation.

Hong Kong Stock Exchange grabbed the bull by the horns to become “Asia’s first” destination for digital asset futures ETFs in December 2022. Two ETFs were listed on the platform—CSOP BTC Futures ETF and CSOP Ether Futures ETF, tracking BTC and Ethereum futures contracts, respectively.

While digital asset ETF products boomed in 2021, investors demonstrated a lack of interest in them in 2022 due to the massive decline in values. The total market capitalization of the virtual currency ETF market fell from the impressive highs of 78 billion to a paltry $21 billion.

Hong Kong is pulling the big players

Looking to leave behind the catastrophic failures of 2022, Hong Kong is keen on establishing itself as a major player for digital asset service providers. The city-state intends to achieve the lofty goal through exciting offers like a smaller tax burden and a clear body of rules.

Rebecca Sin, leading ETF analyst at Bloomberg Intelligence, noted that “Hong Kong is well positioned to become Asia’s crypto gateway,” given the array of incentives. The city had previously confirmed that it was in talks with over 20 international firms looking to set up offices in Hong Kong.

Yat Siu, CEO of investment behemoth Animoca Brands stated that troubled digital asset firms in the United States are beginning to consider Hong Kong as a new destination.

“You know, places like Asia, particularly Hong Kong, are starting to look pretty attractive with their virtual asset policies, with their desire to basically be a leader in the space,” Siu said in a recent interview.

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