The South Korean business newspaper Hankyung reported on Monday that the fund will resemble Amplify’s One Data Cloud (BLOK ETF) which enables investors to invest in data centers. The latter company invests primarily in cryptocurrency-related companies, such as SilverGate Capital, Galaxy Digital Holdings, Coinbase, and futures contracts for bitcoin.
Earlier this month, Samsung Asset Management purchased a 20% stake in Amplifi for $30 million and obtained exclusive Asia rights to sell Amplifi’s ETF. Using the same structure as the BLOK ETF, Samsung’s new fund will be able to trade under Samsung’s name, but will be listed on the NASDAQ.
It is reported that the Illinois-based Amplify’s ETF is BLOK, which stands for Amplify Transformational Data Sharing ETF and invests at least 80% of its net assets in equity securities of blockchain companies.
This is not the first time that Samsung has listed products under its name, as it has also listed semiconductors, China Internet, real estate investment trusts, and crude oil ETFs under the same name in Hong Kong. Millennials, especially those from the millennial generation, are particularly attracted to cryptocurrencies, thus rebranding the company with a blockchain-centric website.
The development of blockchain ETFs has emerged as a means of institutional investors to make money from the booming crypto industry, without having to deal with the volatility that characterizes cryptocurrencies.
A few days ago, BlackRock announced the launch of a Blockchain and Tech exchange-traded fund (ETF), which will hold Coinbase and Marathon Digital, among other stocks. Bitcoin ETFs have traditionally been more difficult to launch in the United States than Bitcoin Futures ETFs. Bitcoin Futures ETFs just came on the market last October, and the Securities and Exchange Commission has yet to approve a spot ETF.
