A subsidiary of US-based crypto exchange Kraken is reportedly benefiting immensely from the success of the Bitcoin (BTC) exchange-traded fund (ETF) boom.
According to a new one report According to Bloomberg, CF Benchmarks – a London-based subsidiary of Kraken that provides benchmark data for approximately $24 billion worth of crypto ETFs – is emerging as an under-the-radar beneficiary of the launch of the BTC ETFs.
A benchmark is a standard used for comparative purposes in assessing the performance of an asset or a portfolio.
According to Bloomberg, CF Benchmarks licenses its benchmarks to Bitcoin ETF issuers, including BlackRock, in exchange for fees that increase as an issuer’s assets under management increase.
Spot market BTC ETFs were approved by the US Securities and Exchange Commission (SEC) in January and also debuted in Hong Kong in the past two weeks.
Sui Chung, CEO of CF Benchmarks, tells Bloomberg in an interview that he envisions BTC ETFs hitting Israel and South Korea after they are approved by regulators in Hong Kong.
“South Korea is a market where ETFs have become the preferred package for long-term savings. It is also a market where digital assets have achieved a high level of adoption.”
According to Bloomberg, CF Benchmarks expected $5 billion in assets from BTC ETFs in the spot market that use their indices, but ended up with an amount four times larger than that.
Chung also tells Bloomberg that he expects an additional $1 billion in assets under management for Hong Kong BTC ETFs by the end of the year.
Chung says CF Benchmarks – which was acquired by Kraken in 2019 for a nine-figure sum – sees its revenue growing into the “mid double digits” this year.
Bitcoin is trading at $63,433 at the time of writing, up marginally on the day.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney