Bitcoin and Institutions – As the crypto winter descends on our wallets and the year 2022 has been marred by hacks and other frauds causing a crisis of confidence, Bitcoin, resilient, continues to appeal to institutional investors. Samsung, one of the largest manufacturers of telephones and information technologies in the world, is an illustration of this. The latter seems to be more and more interested in the world of cryptocurrencies. Indeed, the investment arm of the technology giant, Samsung Venture Investment Corporation, has announced that it plans to launch an ETF (Exchange Traded Fund) of futures contracts on the Bitcoin (BTC) for the Hong Kong market. Enough to make a little ink flow.
One small step for Bitcoin, one giant leap for institutions
According to CoinTelegraph, Samsung Venture Investment Corporation said to launch on January 13 on the Hong Kong market of Bitcoin ETFs. The objective would then be to allow institutional investors and individual investors to access futures contracts on the king of cryptocurrencies. They could thus trade by complying with the local rules in force. This announcement once again confirms the interest that traditional finance has for Bitcoin in this region.
” Hong Kong is the only market in Asia where Bitcoin futures ETFs are listed and traded on the institutional market. It will be a new option for investors who are interested in Bitcoin as a competitive product reflecting their experience in risk management.»
Park Seong-jin, head of Samsung Asset Management Hong Kong – Source: CoinTelegraph
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Bitcoin Gains Ground Despite Crypto Winter
It’s interesting to see Samsung, a traditionally tech-focused company, investing in the cryptocurrency market. This shows that big companies see sustainable potential in this technology, and that they are ready to invest in this market despite the crypto winter.
The Bitcoin Futures ETF will allow buyers to speculate on the future value of Bitcoin, without having to actually own any coins. It’s a simple and accessible way for them to get started in the cryptocurrency market. This small step for Bitcoin could thus allow it toattract more investors.
For its part, after a few hours of life, the ETF is doing well. As our colleagues at Bloomberg explain to us, it has already recorded an increase of 4.2%, thus confirming the interest of this new ETF for the investment branch of Samsung. It remains to be seen what results the latter will obtain in a few quarters.
The burgeoning institutional love for Bitcoin in Asia is not new. L’Australia also followed suitwhile US regulation continues to keep the king of cryptocurrencies at bay. Indeed, the SEC still refuses to set up Bitcoin ETF for Grayscaleand the FTX case seems to have reinforced this position.
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