Despite a lukewarm start, CF Benchmarks, a Kraken subsidiary, forecasts that crypto exchange-traded funds (ETFs) in Hong Kong will surge to $1 billion in assets under management (AUM) by the end of 2024. Bloomberg highlights this optimistic outlook amidst a global expansion of cryptocurrency investment products.
Growth Despite Slow Start
Hong Kong recently welcomed new crypto ETFs, which initially experienced modest trading volumes. However, CF Benchmarks, a London-based provider of reference data primarily for bitcoin-centric products like BlackRock’s IBIT, remains bullish. The company currently manages approximately $24 billion in AUM, accounting for about half of the global crypto benchmarking market. This strong market presence supports its confident projection for the Hong Kong ETFs.
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Expansion into New Markets
Sui Chung, CEO of CF Benchmarks, also pinpointed South Korea and Israel as key future locations for their crypto ETF listings. He noted that in South Korea, ETFs are increasingly favored for long-term savings strategies, indicating a robust potential market for these products.
CF Benchmarks has been a part of the Kraken family since its acquisition in 2019, following its establishment in 2017. The firm’s strategic moves into various international markets underline its commitment to broadening the accessibility and adoption of crypto investment vehicles globally.
The company’s ambitious plans and the growing global footprint of crypto financial products reflect a significant trend towards mainstreaming cryptocurrency investments through regulated avenues like ETFs.
