Cody McGrath 
In March 2022, Samsung Asset Management bought a 20% share of Amplify Holding Company, an ETF provider in the United States.
Samsung Asset Management (SAMHK), a Hong Kong-based subsidiary of Samsung’s investment arm, is developing a blockchain-themed exchange-traded fund (ETF).
SAMHK announced on Thursday that the firm expects to launch its Samsung Blockchain Technologies ETF on the Hong Kong Stock Exchange on June 23.
According to the fund prospectus, the ETF seeks long-term capital growth by investing in stocks of companies actively involved in the development and adoption of blockchain technologies. The fund will make investments in blockchain-related R&D firms, data providers, industry investment firms, and others.
The composition of the ETF will be managed by SAMHK’s portfolio management team, which will be in charge of weeding out firms with “small market capitalization or low trading volume.”
According to the firm, the Samsung Blockchain Technologies ETF is a sub-fund of the Samsung ETFs Trust, an umbrella unit trust established under Hong Kong law.
According to the announcement, SAMHK regards the new investment product as the “first ever global blockchain-related ETF in Hong Kong and Asia.”
Carmen Cheung, SAMHK’s head of ETF and passive investment, noted the growing demand for blockchain technology-based applications, forecasting the industry’s future growth, stating:
“The demand for data processing and storage will expedite with the evolution of our digital world. Blockchain technologies will further be widely used by different businesses to improve data efficiency, and security and shorten the accessibility time. We see this as one of the future trends on digital transformation.”
SAMHK is one of several global subsidiaries of Samsung Asset Management, which is a wholly-owned subsidiary of the Samsung Group. According to official company data, Samsung Asset Management was one of the first companies in South Korea to surpass the 100 trillion Korean won ($79 billion) asset management milestone in 2011.
The ETF launch comes shortly after Samsung Asset Management acquired a 20% equity stake in Amplify Holding Company, the United States’ ETF sponsor, in March 2022, reportedly becoming the second-largest shareholder.
In recent years, the Samsung Group has been actively investigating the blockchain and cryptocurrency industries, supporting crypto transactions on its flagship Samsung smartphones and investing in major crypto wallets. The South Korean tech behemoth has also been experimenting with nonfungible tokens, announcing in January 2022 the launch of a smart TV lineup with an integrated NFT platform.