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Kraken’s CF Benchmarks Takes the Lead in Crypto ETF Market with $24 Billion in Reference Data

Amidst a surge in demand for spot Bitcoin exchange-traded funds (ETFs), CF Benchmarks, a subsidiary of the renowned cryptocurrency exchange Kraken, has emerged as a dominant force in the crypto benchmarking arena. With a staggering $24 billion in reference data under its belt, the firm now commands a formidable 50% share of the crypto ETF market, as reported by Bloomberg.

CEO Sui Chung expressed confidence in the expanding landscape, highlighting plans for further growth. Chung outlined the firm’s vision to extend its reach to markets like Israel and South Korea, citing the latter’s significant crypto adoption as a driving force. South Korea, in particular, has embraced ETFs as a preferred vehicle for long-term savings, presenting a promising avenue for CF Benchmarks’ expansion efforts.

Initially anticipating $5 billion in assets for U.S. spot Bitcoin ETFs this year, CF Benchmarks found itself pleasantly surprised by the overwhelming demand, which surpassed projections by fourfold. While the reception for spot Bitcoin and Ethereum ETFs in Hong Kong initially appeared modest, with initial trading volumes falling below $13 million, Chung remains optimistic about the region’s potential. The firm projects managing approximately $1 billion in assets for Hong Kong products by the close of 2024.

In April, Hong Kong greenlit spot Bitcoin and Ethereum ETFs, following in the footsteps of the U.S. Securities and Exchange Commission’s approval of several spot Bitcoin ETF applications. However, the SEC’s stance on spot Ethereum ETFs appears more cautious, potentially delaying approvals until later this year or beyond.

Established in 2017, CF Benchmarks found a new home under Kraken’s umbrella in 2019, solidifying its position as a key player in the evolving landscape of crypto ETFs.

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