A subsidiary of the US crypto exchange Kraken is reportedly reaping significant benefits from the booming spot Bitcoin (BTC) exchange-traded fund (ETF) market.
CF Benchmarks: The Hidden Beneficiary
CF Benchmarks, a London-based subsidiary of Kraken, provides reference data for crypto ETFs worth approximately $24 billion. It has emerged as an under-the-radar beneficiary of the recent launch of BTC ETFs.
CF Benchmarks licenses its benchmarks to Bitcoin ETF issuers, such as BlackRock, in exchange for fees that increase with the issuer’s assets under management.
ETF Expansion in Asia
CF Benchmarks CEO Sui Chung predicts that BTC ETFs will soon be approved in Israel and South Korea, following their successful launch in Hong Kong.
“South Korea is a market where ETFs have become popular for long-term savings, and digital assets have gained significant adoption,” Chung said.
Revenue Growth and Future Outlook
CF Benchmarks, which Kraken acquired in 2019, expects its revenue to grow significantly this year. Chung anticipates an additional $1 billion in assets under management for Hong Kong BTC ETFs by year-end.
Despite the current marginal increase in Bitcoin’s price, the cryptocurrency remains strong at over $63,000 at the time of writing.
