- One of Kraken’s crypto units has achieved a key milestone.
- The unit is a beneficiary of the spot Bitcoin ETF boom in the U.S.
- The unit now controls a significant share of the crypto benchmarking market.
Kraken’s indices provider CF Benchmarks has tapped the spot Bitcoin ETF boom to control a significant share of the crypto benchmarking market, the company said Friday.
Founded in 2017 and acquired by Kraken in 2019, CF Benchmarks has established itself as a leading digital asset index provider authorized by the UK’s FCA. The company has partnerships with notable industry heavyweights, including Nomura, Hashdex, and Custodia.
CF Benchmarks Dominates Crypto Benchmarking
In a Bloomberg report dated May 3, CF Benchmarks claimed that it represented “roughly half the crypto benchmarking market” following this year’s boom in U.S.-listed spot Bitcoin exchange-traded funds (ETFs).
Sponsored
The company said it provides reference data for about $24 billion in cryptocurrency ETFs, mostly the new fleet of Nasdaq-listed Bitcoin funds, including BlackRock’s $15 billion IBIT. CF Benchmarks licenses its benchmarks to these funds in exchange for fees that rise in tandem with assets under management (AUM).
Per the report, the company anticipated $5 billion of assets this year for the U.S. Bitcoin ETFs that use its indices but the amount has exceeded this projection by four times, providing more opportunities for CF Benchmarks.
Looking ahead, CF Benchmarks is keen on tapping the new Hong Kong crypto ETF market.
Sponsored
“South Korea is a market where ETFs have become the wrapper of choice for long-term savings,” CF Benchmarks CEO Sui Chung stated. “It is also a market where digital assets have gained a high degree of adoption.”
Besides forecasting as much as $1 billion in AUM for the Hong Kong Bitcoin and Ether funds, Chung sees crypto ETFs reaching Israel and South Korea next.
Read about BTCC’s massive crypto trading competition:
BTCC Sets 10M USDT Rewards for Its World Trading Contest
Stay updated on Binance’s collaboration with India to nab a multimillion-dollar scam:
Binance Collaborates with Indian Authorities to Nab $10M Scam
