Hong Kong Crypto ETFs Projected to Top $1B in Assets by 2024's End

Amidst a muted debut for Hong Kong's crypto ETFs, CF Benchmarks CEO Sui Chung anticipates a surge in assets under management (AUM) to $1 billion by 2024. This projection is driven by CF Benchmarks' experience with crypto ETFs globally, including BlackRock's IBIT. Chung identifies South Korea and Israel as potential future markets for crypto ETF listings, given their strong ETF adoption.

Hong Kong Crypto ETFs Projected to Surpass $1 Billion AUM by 2024 End

London, May 3, 2024 - Despite a lackluster start, crypto exchange-traded funds (ETFs) in Hong Kong are poised to witness a significant surge in assets under management (AUM), according to projections by industry experts.

CF Benchmarks, a London-based provider of reference data for crypto ETFs, predicts that AUM for these funds will reach $1 billion by the end of 2024. The firm currently serves as a data provider for crypto ETFs with a combined AUM of $24 billion, primarily consisting of Bitcoin products like BlackRock's IBIT.

"Despite the initial low trading volume, we are confident that crypto ETFs in Hong Kong will gain traction and become a significant investment vehicle for investors," said Sui Chung, CEO of CF Benchmarks.

Chung's optimism stems from the observation that ETFs have emerged as a preferred investment wrapper for long-term savings in South Korea, a market that is expected to follow suit with crypto ETFs.

"South Korea has a strong tradition of retail investing, and ETFs have become a popular way for investors to access various asset classes," Chung noted.

In addition to South Korea, CF Benchmarks also identified Israel as a potential growth market for crypto ETFs. The firm's expansion into new markets aims to unlock further opportunities for investors seeking exposure to digital assets.

CF Benchmarks, a subsidiary of cryptocurrency exchange Kraken, was acquired in 2019 for a substantial nine-figure sum. Its role as a benchmark provider has established it as a key player in the crypto ETF market, providing essential data for fund managers and investors alike.

The news of Hong Kong's crypto ETF growth potential comes as a positive sign for the industry, indicating growing acceptance and adoption of digital assets as investable instruments. The successful launch of crypto ETFs in various jurisdictions provides a gateway for mainstream investors to participate in the fast-evolving cryptocurrency market.

As the regulatory landscape for cryptocurrencies continues to evolve worldwide, the establishment of crypto ETFs offers investors a regulated and accessible way to gain exposure to this emerging asset class. The growth trajectory of crypto ETFs in Hong Kong and other markets is expected to attract institutional investors and further enhance the legitimacy and credibility of the cryptocurrency industry.