Samsung Asset Management (Hong Kong) Ltd., a wholly owned subsidiary of Samsung Asset Management, a member of the Samsung Group of companies, has launched a Bitcoin futures exchange-traded fund (ETF) on Friday called “Samsung Bitcoin Futures Active ETF”. The ETF is listed and traded on the Hong Kong stock exchange, and seeks “to provide economic exposure to the value of Bitcoin,” as Samsung detailed.
Investment Objective
The investment objective of the sub-fund is to seek to provide economic exposure to the value of Bitcoin by investing predominantly in front-month Bitcoin futures contracts and/or micro Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). Samsung explained that the actively managed Bitcoin futures ETF paves the way “for investment in future crypto-technology adoption.” However, the company noted that the fund “does not invest directly in Bitcoin and will not receive any Bitcoin from Bitcoin futures on CME.”
Regulatory Framework
CME is regulated by the U.S. Commodity Futures Trading Commission (CFTC).The Bitcoin futures ETF is managed by Samsung Asset Management (Hong Kong) Ltd. while HSBC Institutional Trust Services (Asia) Ltd. is the fund’s trustee and registrar. The fund “will enter into and have exposure of up to 100%” of its net asset value (NAV) in Bitcoin Futures on CME, the company added.
Pricing and Trading
While Bitcoin is priced in U.S. dollars, units of the Samsung Bitcoin Futures Active ETF are listed and traded in Hong Kong dollars on the Stock Exchange of Hong Kong (SEHK), the company clarified.
Previous Crypto-Related Funds
The newly launched ETF is not Samsung Asset Management’s only crypto-related fund. In June last year, the Hong Kong firm launched “Samsung Blockchain Technologies ETF” and “Samsung Asia Pacific ex NZ Metaverse Theme ETF.”
With this launch, Samsung has taken a step further in providing economic exposure to the value of Bitcoin. The actively managed ETF is expected to pave the way for investment in future crypto-technology adoption. However, it’s important to note that the fund does not invest directly in Bitcoin and will not receive any Bitcoin from Bitcoin futures on CME. As the ETF is listed and traded on the Hong Kong Stock Exchange, it will be interesting to see how it performs in the market.