The tech giant’s investment arm is considering launching Asia’s first Bitcoin spot ETF. The futures ETF is being launched at the same time.
Hong Kong in race to be Asia’s crypto leader
Sam Park, head of Samsung Asset Management, which is the investment arm of the tech giant, participated in an interview conducted by Bloomberg. Its contents were published on Friday, January 13. During the meeting, from Sam Park’s mouth, the following words are said, among others:
“It really depends on how the policy is developed.”
This was in response to a question about the possibility of Samsung Asset Management launching a Bitcoin ETF spot in Hong Kong. Interestingly, such an option is also not ruled out by ETF Analyst at Bloomberg Intelligence, Rebecca Sin, who sees huge regional potential in what could be a consequential product launch:
“Hong Kong is well-positioned to become Asia’s cryptocurrency gateway.”
According to her, this solution will be operational before the end of this year. It is to apply not only to the Bitcoin (BTC) spot ETF but also to Ether (ETH).
Bitcoin futures ETF already in operation
The day of publication of the interview with the head of Samsung Asset Management is absolutely not coincidental. This is because Friday, January 13 is the day when the Bitcoin futures ETF launched on the Hong Kong Stock Exchange. Thus, the exchange is the first and only one in the whole of Asia to operate this kind of cryptocurrency product.
It is worth taking this opportunity to point out the differences between the spot and futures solution. The former causes the exchange of financial instruments to be settled immediately. The latter, on the other hand, results in the purchase of contracts, which are due at a later date.
A board member of CSOP Asset Management, which is a competing fund to Samsung Asset Management, informs at the same time that:
“ETFs do not invest in physical Bitcoin. There are more regulatory protections for investors, compared to tokens traded on unregulated platforms.”
The United States is losing the cryptocurrency market
At a recent Twitter Spaces, organized by Bloomberg, Yat Siu, acting Animoca Brands Chairman, admitted:
“The United States, of course, seemed to be a market that was perhaps good. However, I think places like Asia, especially Hong Kong, are starting to look quite attractive with their virtual asset policies. They are also expressing a desire to be a leader in this space.”
The United States has continually struggled with a lack of regulatory clarity on cryptocurrencies. However, there are voices indicating that this may soon change. You can read about one of them in the article: “Ripple’s CEO is moderately optimistic about 2023, thinking that it could be the time for shaping transparent regulation of the cryptocurrency market.”