Samsung Asset Management Hong Kong, a division of the South Korean technology giant, is planning to introduce a new Bitcoin (CRYPTO: BTC) futures ETF on Jan 13.
The ETF, named "Samsung Bitcoin Futures Active ETF," aims to provide investors with similar returns as investing in the spot Bitcoin.
This ETF will allow investors in Hong Kong and other Asian markets to gain exposure to the world's most popular digital currency, Bitcoin.
The ETF will primarily invest in Bitcoin futures from the Chicago Mercantile Exchange (CME), which is known for its futures contracts that are based on the underlying spot price of Bitcoin.
This helps to reduce the volatility and risk associated with investing directly in digital currency.
Additionally, the ETF may also invest in CME micro-Bitcoin futures in some cases, as a way to diversify the investment portfolio.
The head of Samsung Asset Management's Hong Kong office, Park Seong-jin, said that the ETF will provide investors with a similar investment performance as the spot Bitcoin.
“Hong Kong is the only market in Asia where Bitcoin futures ETFs are listed and traded in the institutional market. It will be a new option for investors who are interested in Bitcoin as a competitive product that reflects their experience in risk management,” he added.
Samsung's announcement comes a month after Hong Kong received its first Bitcoin and Ethereum (CRYPTO: ETH) futures exchange-traded funds (ETFs).
The ETFs by CSOP Asset Management reportedly raised about $58.9 million and $19.7 million, respectively, before public listing, which suggests a strong appetite for crypto in the Hong Kong market.
Samsung Asset Management's move to launch a Bitcoin futures ETF is a significant development for the crypto market in Asia.
It will provide investors with a convenient way to gain exposure to the leading digital currency, while also helping to reduce the volatility and risk associated with investing directly in Bitcoin.