Samsung launches the 2nd Bitcoin Futures ETF in the whole of Asia. Begins trading on January 13.
The Samsung Bitcoin Futures ETF
Samsung Asset Management Hong Kong (SAMHK), a subsidiary of Samsung Asset Management, designed the ETF to track the spot price of Bitcoin by investing in Bitcoin futures products listed on the Chicago Mercantile Exchange (CME). The ETF will mainly invest in the CME Bitcoin Futures, with a small portion of investments in the CME Micro-Bitcoin Futures.
Interest in crypto increases
The launch of the ETF comes at a time when there is increasing interest from both government and institutional investors in Hong Kong for Bitcoin and other cryptocurrencies.
Recently, Hong Kong’s finance secretary Paul Chan announced at a Web3 forum that the region was still committed to being a hub for cryptocurrencies, and then this was followed by the Financial Services and the Treasury Bureau (FSTB), a Hong Kong regulator, stating that a new framework could allow retail investors to trade on licenced exchanges.
A way of gaining exposure to Bitcoin
This ETF listing provides investors with a new way to gain exposure to Bitcoin, which may help attract more mainstream investors to the cryptocurrency space. Samsung’s reputation and brand power also make the ETF an attractive option for investors looking for a way to invest in Bitcoin without having to manage their own private keys.
Is a futures ETF good for Bitcoin?
Some might say that futures ETFs are actually bad for the crypto space given that the value of the ETF is based on the futures contracts, rather than the underlying asset, leaving it open for manipulation by traders with large positions. In fact, it might also be said that a futures ETF is really best for shorting the asset, and is not a suitable tool for retail investors.
It also might be said that this makes it rather odd that Gary Gensler, Chairman of the US SEC, only approves futures ETFs for Bitcoin. Many Bitcoin ETFs have been turned down over the years, but futures ETFs are given the nod. This does rather appear to fly in the face of one of Gensler’s main remits, which is to protect retail investors.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.