Kraken’s CF Benchmarks is making significant strides in the crypto ETF market, boasting $24 billion in reference data and commanding 50% dominance in the industry. With a surge in demand for crypto investment products, the firm is poised for expansion.
Sui Chung, CEO of CF Benchmarks, highlighted the firm’s success amid the rise of spot Bitcoin exchange-traded funds (ETFs). Notably, CF Benchmarks is now responsible for providing price data for a substantial portion of the crypto ETF market, representing a significant milestone.
Chung noted plans for extending the reach of crypto ETFs to Israel and South Korea, citing South Korea’s robust crypto adoption and the preference for ETFs as a vehicle for long-term savings in the market.
Initially projecting $5 billion in assets for U.S. spot Bitcoin ETFs this year, CF Benchmarks has witnessed an unprecedented demand surge, surpassing expectations fourfold. Despite modest initial trading volumes for spot Bitcoin and Ethereum ETFs in Hong Kong, CF Benchmarks remains optimistic about the region’s potential, aiming to manage approximately $1 billion in assets for Hong Kong products by the end of 2024.
In April, Hong Kong approved spot Bitcoin and Ethereum ETFs, following similar moves in the U.S. by the Securities and Exchange Commission (SEC). However, while Hong Kong progresses, the SEC is taking a cautious stance on spot Ethereum ETFs, potentially delaying approvals until later in 2024 or beyond.
Established in 2017, CF Benchmarks was acquired by Kraken in 2019, positioning itself as a key player in the crypto ETF market.
Summary Review: Kraken’s CF Benchmarks has emerged as a dominant force in the crypto ETF market, handling $24 billion in reference data and commanding a significant share of the industry. With plans for expansion into new markets and a surge in demand for crypto investment products, CF Benchmarks is well-positioned for continued growth. As the crypto landscape evolves and regulatory approvals progress, CF Benchmarks remains at the forefront, leveraging its expertise to shape the future of the crypto ETF market.
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