Spot Bitcoin ETF Surge Drives Crypto Benchmarking Firm's Growth

CF Benchmarks, a cryptocurrency exchange benchmark, has experienced significant growth due to the rise of spot Bitcoin exchange-traded funds (ETFs). Handling $24 billion in crypto ETFs, the firm is projected to reach a staggering $1 billion in assets under management (AUM) by the end of 2024 for Hong Kong ETFs, despite their initial low trading volume. South Korea and Israel are next in line to list crypto ETFs, highlighting the growing demand for crypto-related investments.

Surge in Popularity of Spot Bitcoin ETFs Drives Growth for Crypto Benchmarking Firm

Amidst the lackluster performance of Hong Kong-based exchange-traded funds (ETFs), CF Benchmarks, a subsidiary of cryptocurrency exchange Kraken, has experienced significant growth from the rise of spot Bitcoin ETFs.

According to Bloomberg, the firm, which provides price data for ETFs, currently manages approximately $24 billion worth of crypto ETFs, capturing nearly half of the crypto benchmarking market.

Hong Kong ETF Market Poised for Growth

CF Benchmarks is actively involved in the nascent Hong Kong ETF market, which initially faced subdued trading volumes. Despite a modest start with assets under management (AUM) amounting to less than $13 million, the firm's CEO, Sui Chung, anticipates that Hong Kong ETFs will witness a surge to $1 billion in AUM by the end of 2024.

South Korea and Israel are the next potential markets for crypto ETFs, with South Korea emerging as a destination for long-term savings vehicles.

U.S. Spot ETFs Exceed Expectations

Leveraging its data, CF Benchmarks initially projected $5 billion in assets for U.S. spot Bitcoin ETFs in 2023. However, actual demand has far surpassed expectations, exceeding four times the projected amount.

Hong Kong and US Regulatory Developments

Hong Kong granted approval for spot Bitcoin and Ethereum ETFs in April 2023, following the U.S. Securities and Exchange Commission's (SEC) authorization of several spot Bitcoin ETFs in the U.S. However, Ethereum ETF approvals in the U.S. have encountered obstacles and may be delayed beyond this year due to the SEC's cautious approach.