Terence Zimwara
Samsung Group’s investment arm is reportedly set to list a blockchain exchange-traded fund (ETF) on the Hong Kong Exchange during the first half of this year. The ETF will have a structure which is similar to that of BLOK, one of Amplify Holdings’s ETF products.
Samsung Asset Management’s Stake in Amplify Holdings
Samsung Asset Management Company (SAMC) is expected to list a blockchain exchange-traded fund (ETF) on the Hong Kong Exchange during the first half of 2022, the parent company Samsung Group has said. The listing of an ETF, which tracks cryptocurrency and blockchain technology companies, will be a first for Asia one report has said.
The ETF listing is expected to occur in the first half of 2022 comes a few weeks after SAMC reportedly acquired 20% of the stake in Amplify Holding Company, a U.S. ETF sponsor. As part of a $30 million acquisition agreement with Amplify Holding, Samsung Group’s investment arm will have exclusive rights to provide Amplify products in Asia.
The U.S. ETF sponsor, which is famed for its ETF products such as BLOK, or Amplify Transformational Data Sharing ETF, is thought to invest “at least 80% of its net assets in equity securities of blockchain companies.” As per the report, the asset manager’s ETF will have a structure that is identical to that of BLOK.
No Plans to List on Korean Stock Market
Some of the blockchain companies where Amplify Holding has invested include Silvergate Capital, the graphics processing unit (GPU) producer Nvidia, Galaxy Digital Holdings and Coinbase.
According to The Korea Economic Daily report, the asset manager is planning to brand the ETF under its name. The report also revealed that SAMC may not be listing the ETF of the South Korean stock market anytime soon due to the country’s cryptocurrency regulations.
The report states, however, that the asset manager is considering listing some of Amplify’s other ETFs in the Korean as well as overseas markets.
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