The Blockchain Industry Under a Dual Narrative: Price Volatility vs. Structural Tailwinds — In-Depth Analysis of Samsung Blockchain Technology ETF (3171 HK)

Early June,$Bitcoin (BTC.CC)$ prices fell sharply, briefly dropping below the $65,000 mark to hit their lowest level since April. According to CoinGlass data, 277,754 traders were liquidated in the 24 hours ending June 3, with total liquidations reaching $1.84 billion. [1] The Bitcoin Fear & Greed Index plunged into the 'Extreme Fear' zone. [2] Given the current macroeconomic and policy cycle, how can investors look beyond mere token price volatility and seek alpha through underlying technology, regulatory compliance, and cross-industry collaboration?

Sharp Short-Term Decline: Multiple Negative Factors Cleared at Once

From June 2 to 3, Bitcoin plummeted from around $74,000 to a low of approximately $65,400 within two days, a drop of over 11%. This sharp move resulted from the convergence of several key signals:

1. Strategy 'Violation' Sell-Off: The world's largest corporate Bitcoin holder $Strategy (MSTR.US)$ sold 32 Bitcoins (approximately $2.5 million), breaking its long-standing 'buy-only' policy. The symbolic impact far outweighs the actual transaction amount, shaking market confidence in the belief that 'bullish flag-bearers never sell' and sparking concerns about further potential sales.

2. Macroeconomic Pressure and Geopolitical Tensions:The U.S. April Producer Price Index (PPI) surged 6%, marking a three-year high and significantly surpassing the market expectation of 4.9%, effectively eliminating expectations for rate cuts this year. Meanwhile, rising risks of Iran blocking the Strait of Hormuz have heightened safe-haven sentiment, broadly suppressing risk assets.

3. Continued institutional outflows:US spot Bitcoin ETFs have recorded net outflows for more than ten consecutive trading days, with approximately $2.3 billion withdrawn in May alone—the longest selling cycle this year. [4]

These short-term negative factors appear to represent a one-off emotional reset rather than long-term structural damage. This Bitcoin downturn has not been accompanied by 'endogenous crises' such as exchange collapses, protocol failures, or sweeping regulatory bans. For investors focused on long-horizon allocations, the valuation range following this sharp correction warrants renewed attention.

Institutional inflection point: The CLARITY Act could pave the way for institutional participation

In the last week of May, the US Senate Committee on Banking, Housing, and Urban Affairs voted 15–9 to pass the Clarity for Payment Stablecoins Act (CLARITY Act). The market expects the legislation to be finalized before Congress adjourns for summer recess in August 2026.

(1) Stablecoin yield controversy: Striking a balance between banks and the crypto industry

Stablecoin yields have long been a point of contention between banks and the crypto industry. The core of the compromise lies in 'prohibiting deposit-like interest while allowing activity-based rewards.' Stablecoin holders cannot earn interest merely by holding tokens—preserving traditional banks’ 'interest advantage'—but incentives earned through actual economic activities such as payments, trading, or staking remain permitted.

(2) Opening the door for institutional participation

The primary objective of the CLARITY Act is to establish a clear federal regulatory framework for all digital assets. If passed this year, the legislation will provide pension funds, insurance capital, family offices, and other long-term investors with a definitive compliance pathway. Blockchain infrastructure providers, compliant exchanges, custodians, and底层 technology developers will directly benefit from this structural influx of capital.

Re-rating of mining infrastructure: Bitcoin miners are building a second growth curve

Another structural shift occurring alongside short-term price pressures is that the Bitcoin mining industry is undergoing a large-scale business model transformation—from relying solely on cryptocurrency mining to operating AI computing infrastructure.

(1) The economics of mining can no longer stand alone

The current cash cost to mine one Bitcoin is approximately $87,000 [5], while Bitcoin’s price has dropped to around $65,000–$70,000, meaning most miners are now operating at a loss. Publicly listed mining firms have had to continuously sell their Bitcoin holdings to maintain operations, yet they are simultaneously accelerating their transition toward AI data center services.

(2) AI compute shortage and miners’ unique resource advantages

In contrast to the increasingly strained economics of mining, there is strong unmet demand for GPUs, electricity, and data centers required to train large AI models. Bitcoin miners possess scarce power allocations, high-specification substations, and mature cooling systems. Building an AI data center of equivalent scale from scratch would require several years of approvals and construction, giving miners’ existing infrastructure significant replacement value.

Typical case studies：

$IREN Ltd (IREN.US)$ : Signed a multi-year cloud computing agreement with Microsoft and completed $3.65 billion in financing, aiming to scale AI computing operations to 480 megawatts by end-2026. Also signed a five-year, $3.4 billion AI cloud contract with NVIDIA. [5]

$MARA Holdings (MARA.US)$ : Leveraging a 1.9 gigawatt power portfolio as its core asset to pivot toward AI high-performance computing infrastructure. Secured 1.9 gigawatts of power capacity in the PJM grid. [5]

$Hut 8 (HUT.US)$: is a pioneer among mining firms transitioning to AI infrastructure. In May 2026, the company announced a 15-year, $9.8 billion lease agreement for its Beacon Point campus in Texas, prompting its share price to surge over 33% to a record high. [5]

Samsung Blockchain Technology ETF (3171 HK): A strategic vehicle for capturing a dual structural reversal

$Samsung Blockchain Technologies ETF (03171.HK)$ Employs an actively managed strategy, primarily investing in globally listed companies deeply engaged in blockchain technology development and ecosystem applications—including data center operators that have successfully entered the AI space, regulated exchanges, digital asset custodians, and developers of foundational blockchain technologies.

First structural catalyst:Once passed, the CLARITY Act will provide federal-level legal certainty for the entire blockchain industry. Compliant exchanges, custodians, and infrastructure operators will see significant inflows of institutional capital.

Second structural catalyst:Mining companies’ transition into AI computing infrastructure not only unlocks a second growth curve but also shifts the valuation logic for certain firms from 'digital commodity producers' to 'digital economy infrastructure,' potentially warranting higher long-term valuation multiples.

We believe the recent short-term price pullback and liquidation cascades reflect concentrated market sentiment release and do not alter the industry fundamentals underpinning the two structural trends outlined above. For investors focused on the long-term development of the blockchain sector, $Samsung Blockchain Technologies ETF (03171.HK)$ offers a basket of tools to gain exposure to global blockchain leaders and those spearheading the AI computing infrastructure transition.

Data source:

[1] Coinglass (3/6/2026)

[2] Newsbtc (4/6/2026)

[3] CME FedWatch (4/6/2026)

[4] GateNews (1/6/2026)

[5] Bloomberg, as of 4/6/2026

Important Information

• Investment involves risks. Past performance is not indicative of future results. The price of funds can go up as well as down, and investors may suffer all or significant losses on their investments. Investors should not make any investment decisions based solely on this material.

• The Samsung Blockchain Technology ETF is a fund within the Samsung ETF Trust. Its investment objective is to achieve long-term capital growth by primarily investing in equity securities of companies actively involved in the development and/or use of blockchain technology. However, there is no guarantee that the fund will achieve its investment objective.

• The main risk factors that the Samsung Blockchain Technology ETF may face include general investment risks; active investment management risks; stock market risks; risks associated with companies involved in blockchain technology (including new technology risks, security risks, cyberattack risks, intellectual property risks, regulatory risks, third-party product risks, risks related to dependence on the internet, limited operating history risks, semiconductor industry risks, internet company risks, software industry risks, etc.); risks related to investments in cryptocurrency futures ETFs (including high price volatility, high rollover costs, liquidity and operational risks, etc.); industry concentration risks; risks associated with depository receipts; currency risks; securities lending transaction risks; other currency distribution risks; risks of distributions from capital or effectively from capital; trading risks; risks of trading discrepancies; risks related to reliance on market makers; risks of termination, etc.

• The above fund has been authorized by the Securities and Futures Commission of Hong Kong (SFC). Authorization does not imply official endorsement of the product. This material is for reference only and does not constitute an offer or solicitation to any person to buy, sell, or adopt any investment strategy.

• The Manager may, at its discretion, make cash distributions to unit holders from capital or total income (while charging all or part of the Fund's fees and expenses to the capital or paying them from the capital), thereby increasing distributable income for payment of distributions, which actually amounts to a distribution from capital.

• Distributions paid or effectively paid out of capital amount to a return of part of an investor's original investment or withdrawal of part of the original investment or capital gains attributable to that original investment. Any practice involving distributions being paid out of the capital of the product or effectively paid out of the capital of the product may result in an immediate reduction in the per-unit net asset value.

• This document has been prepared by Samsung Asset Management (Hong Kong) Limited (SAMHK) and has not been reviewed by the Securities and Futures Commission or any other regulatory authority. Investors should determine whether any investment product or strategy is suitable based on their individual financial situation, investment experience, and objectives. If you have any questions regarding the relevant information, you should seek advice from a professional advisor as needed.

• Certain information contained herein is compiled from third-party sources. SAMHK has made efforts to ensure the accuracy, completeness, and timeliness of such information and taken measures to verify and reproduce it accurately. However, SAMHK assumes no responsibility or liability for the accuracy of the data, any use thereof, or reliance on it. This content may contain forward-looking statements based on SAMHK’s opinions, expectations, and projections. SAMHK has no obligation to update or revise any forward-looking statements, and actual results may differ materially from those anticipated in forward-looking statements. All copyrights for the contents of this material (including all information, images, computer codes, text, logos, and designs) are owned by SAMHK. Without SAMHK’s consent, the information provided herein must not be reproduced or redistributed.

371K Views