Kraken’s CF Benchmarks Dominates the Crypto ETF Market with 50% Market Share

May 3, 2024

3 Views 0

SaveSavedRemoved 0

Kraken’s CF Benchmarks, a cryptocurrency exchange subsidiary, has achieved a significant milestone in the crypto ETF market by handling about $24 billion worth of crypto ETFs, representing roughly half of the crypto benchmarking market. The firm provides price data for the ETFs, which has led to its dominance in the market.

According to a Bloomberg report, CF Benchmarks initially expected $5 billion in assets this year for the U.S. spot Bitcoin ETFs using its data. However, the actual demand far exceeded the projection, surpassing four times the expected amount. This surge in demand can be attributed to the rise in spot Bitcoin exchange-traded funds (ETFs) this year.

CF Benchmarks CEO Sui Chung said in an interview that the firm sees crypto ETFs reaching Israel and South Korea next, with South Korea having gained a “high degree of [crypto] adoption.” He added that South Korea is a market where ETFs have become the wrapper of choice for long-term savings.

Despite initial trading volumes for spot Bitcoin and Ethereum ETFs in Hong Kong reaching less than $13 million, CF Benchmarks remains optimistic about the region’s potential. Chung revealed that the firm anticipates managing approximately $1 billion in assets for Hong Kong products by the end of 2024.

Founded in 2017, CF Benchmarks was later acquired by Kraken in 2019. The firm has been making significant strides in the crypto ETF market, providing price data for several spot Bitcoin ETFs, including those in the U.S. and Hong Kong.

Kraken’s CF Benchmarks is not the only firm benefiting from the rise in crypto ETFs. Other firms such as BlackRock and Valkyrie have also launched their own Bitcoin ETFs, capitalizing on the growing demand for crypto investment products.

The rise of crypto ETFs is a positive development for the crypto industry, as it provides retail investors with an easy and regulated way to invest in cryptocurrencies. It also increases the legitimacy of cryptocurrencies as a mainstream asset class.

References: