Samsung Sets Up Bitcoin Futures ETFs in the Hong Kong Markets

• Hong Kong becoming “Asia’s Crypto Gateway” is anticipated.
• Samsung acknowledges Hong Kong as the first Asian market to list Bitcoin futures ETFs in the institutional market.

Hong Kong advances toward Bitcoin adoption in the Asia-Pacific region during crypto winter with a firm move. Significantly, Samsung Asset Management, the investment subsidiary of the tech giant, powers up the city’s crypto mission with the launch of Bitcoin futures ETFs – Samsung Bitcoin Futures Active ETF, on Friday. 

Samsung Asset Management Hong Kong stated: 

“Samsung Bitcoin Futures Active ETF (the “Sub-Fund”) is a sub-fund of Samsung ETFs Trust III, which is an umbrella unit trust established under Hong Kong law. The units of the Sub-Fund are listed on the Stock Exchange of Hong Kong Limited (the “SEHK”)”

Primarily, the ETF offers access to the Bitcoin Futures listed on Chicago Mercantile Exchange (CME), licensed by US Commodity Futures Trading Commission (CFTC). Thus, Samsung is keen on facilitating investors’ exposure to bitcoin futures contracts and micro-bitcoin futures traded on CME.

Last December, Hong Kong introduced Bitcoin and Ethereum futures exchange-traded funds (ETFs) into its markets. Soon after this green signal, Samsung has now shown up to upgrade the investor’s access to Bitcoin via its ETFs.

Transforming Into the Asian Crypto Hub

At the Asia Financial Forum on Wednesday, the Securities and Futures Commission (SFC) announced that it will release a “consultation paper” on virtual assets in Q1 2023. Also, the new licensing rulebook for virtual assets platforms will be declared in June. Julia Leung Fung-yee, the new CEO of the SFC, emphasized that the implementation of the new regulations will restrict crypto traders and investors to only “highly liquid” virtual assets 

Despite China and Singapore opposing the entry of crypto, Hong Kong exhibits its unwavering stance in making a crypto comeback. Since late 2022, the city’s regulators have been publicly voicing their upcoming plans to implement a crypto regulatory framework. 

Christopher Hui, Secretary of Financial Services and the Treasury of Hong Kong (FSTB) stated:

“Hong Kong is a very open place…Whoever meets our law and requirements, they’re welcome.”

Apart from Bitcoin future ETFs, Hong Kong is legalizing and piloting prominent crypto-based projects. Evidently, the FSTB is also experimenting with a non-fungible token (NFT) offering. Furthermore, the tokenization of green bonds and the launch of the city’s own CBDC (e-HKD) are major plans on its agenda. By creating the anticipation of crypto-friendly regulations, Hong Kong is calling in legitimate virtual asset platforms to establish their spots in their hub.