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Korean tech conglomerate Samsung is looking to beat its competitors in Hong Kong by offering a Bitcoin exchange-traded fund (ETF) to investors to gain better exposure to the leading cryptocurrency.

Closely monitor regulatory developments

Speaking in a interview With Bloomberg earlier this week, Sam Park, the managing director of Samsung Asset Management in Hong Kong, confirmed that the investment division is planning to launch a spot Bitcoin ETF that will be domiciled on the Hong Kong Stock Exchange. Park explained that they are closely monitoring policy developments in the region and would prefer to launch an ETF there as soon as possible.

Park added that Samsung Asset Management is interested in applying and launching a spot Bitcoin ETF on the hong kong Sotck exchange.

However, their ability to achieve this will greatly depend on the region’s crypto policies going forward. He also said Hong Kong administrators have shown interest in developing the region into a crypto hub, so the company is watching closely to see how its policies play out.

In the report, Rebecca Sin, an analyst at Bloomberg ETF, also pointed out that Hong Kong is well positioned to become the crypto gateway for the entire Asian continent. Sin added this place Bitcoin and Ethereum products are expected to be approved in Hong Kong by the end of the year, paving the way for a new wave of investment to enter the region sooner rather than later.

Samsung continued to expand its reach in the Kong Kong crypto sector. This week, Samsung Asset Management Hong Kong launched the “Samsung Bitcoin Futures Active ETF” on the Hong Kong stock exchange.

The ETF will track the spot price of bitcoin by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME). However, while the Fund will primarily invest in CME Bitcoin Futures, part of its capital will also be allocated to Micro-Bitcoin Futures.

As it stands, Hong Kong is the only Asian market where Bitcoin futures can be traded. And with Samsung now joining the fray, investment products such as the Hong Kong Crypto Futures ETF should see some competition.

A new dawn for a dynamic region

The launch of a spot Bitcoin ETF is sure to boost Hong Kong’s status. The region has worked hard to become a crypto hub, and a new investment product should help improve investor sentiment.

Last week, Hong Kong Financial Secretary Paul Chan Explain that the region has garnered considerable interest from crypto firms looking to set up their global headquarters in the region over the past couple of months. Companies and stock exchanges in the sector have also shown their willingness to expand their business in Hong Kong and even list on the regional stock exchange.

Nevertheless, Chan stressed that the authorities seek to move forward in the safest and most rational way possible. He pointed out that current market conditions have made it especially necessary for regulators to understand how crypto works and to only operate in a way that encourages investor safety.

Hong Kong lawmakers have already passed legislation to implement a licensing system for crypto-asset service providers. The new framework is designed to provide the same level of market recognition to crypto exchanges than that currently available to traditional financial institutions. From there, they hope to provide more regulatory guidelines to govern how businesses operate in the space.

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