KB Asset Launches First Blockchain Mutual Fund – Korea Times

September. 6. 2021

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09/06/2021 3:21 PM

KB Asset launches first blockchain mutual fund

KB Asset Management logo / Yonhap
KB Asset Management logo / Yonhap


By Anna J. Park

KB Asset Management launched the country’s first blockchain-focused investment fund, the KB Global Digital Chain Economy fund, on Monday.

Blockchain refers to a decentralized ledger technology that records the origin of a digital asset, through which any data registered in the blockchain cannot be changed. The transparent technology is currently in high demand, especially in the payments industry, and its scope continues to expand into areas such as cloud service, cybersecurity and healthcare.

The KB Asset Fund is divided into three main investment areas. First, companies that make blockchain-related hardware like CPUs and graphics cards, especially companies like Nvidia, AMD, Intel, and Samsung Electronics.

Second, major software companies that offer their customers blockchain-based services, including IBM, Amazon and Microsoft, as well as the Asian big tech companies Baidu and Fujitsu.

And finally, companies that are actually applying blockchain technology to their current business model. These include PayPal, Visa, Square and NTT DATA, as well as large platform companies such as Tencent and Google.

By country, US companies account for over 52 percent of the fund portfolio, followed by Japanese companies with 14 percent, those from European countries with 12 percent and China with 11 percent.

The fund can be invested in KB Securities, SK Securities and Korea Foss Securities.

“Blockchain is a key technology that, along with 5G and artificial intelligence technologies, is leading the fourth industrial revolution,” said Lee Hyun-seung, CEO of KB Asset Management. “Through the fund, retail investors can easily get access to investments in blockchain-related companies,” he added.

KB Asset also launched the country’s first Metaverse themed fund in June, introducing new investment areas for the local fund sector.

Global research firm IDC predicts blockchain investments will grow by an average of 46.4 percent annually through 2024. Gartner, another research firm, estimates that blockchain technology will add $ 3.1 trillion in value by 2030.

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