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CF Benchmarks Predicts Growth of Crypto ETFs in Hong Kong
The CEO of CF Benchmarks, a subsidiary of cryptocurrency exchange Kraken, foresees significant growth for crypto exchange-traded funds (ETFs) in Hong Kong. The company predicts that these ETFs will accumulate over $1 billion in assets under management (AUM) by the end of 2024.
CF Benchmarks Overview
CF Benchmarks, based in London, provides reference data for crypto ETFs, with a focus on bitcoin products like BlackRock’s IBIT. The company currently oversees approximately $24 billion in AUM, representing a substantial portion of the crypto benchmarking market.
Collaboration with Hong Kong ETFs
Despite a slow start in terms of trading volume, CF Benchmarks is now collaborating with new ETFs in Hong Kong, as reported by Bloomberg. The company licenses its benchmarks to funds and charges fees that align with the growth of AUM.
Expansion to Other Countries
CF Benchmarks sees potential for crypto ETFs to expand to other countries beyond Hong Kong. CEO Sui Chung anticipates the arrival of these ETFs in South Korea and Israel, citing the growing adoption of digital assets in these regions.
Revenue Growth Expectations
CF Benchmarks expects significant revenue growth, with forecasts indicating a “mid-double digits” increase this year. The company’s recent UK accounts show revenue of £6 million ($7.5 million) in 2022, with plans to expand its workforce by over one-third to support growth.
Impact on Bitcoin Prices
The introduction of US ETFs previously led to a surge in Bitcoin prices, reaching a record high in March. However, subsequent declines in investor demand have impacted the token’s value, with assets under management for US ETFs currently at around $47 billion.
Competition in Hong Kong
Hong Kong has launched its first batch of ETFs focused on cryptocurrencies, potentially posing competition to existing Bitcoin products in the US. Bloomberg Intelligence estimates that Bitcoin and Ether funds in Hong Kong could amass around $1 billion over the next two years.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
