According to Bloomberg on Friday, the CEO of CF Benchmarks, a division of cryptocurrency exchange Kraken, believes that cryptocurrency exchange-traded funds (ETFs) in Hong Kong will surpass $1 billion in assets under management (AUM) by the end of 2024, despite an unlucky start.
Reference data for crypto ETFs, primarily bitcoin products like BlackRock’s IBIT, is provided by London-based CF Benchmarks. With an AUM of about $24 billion in this market, it claims to account for about half of the cryptocurrency benchmarking market.
Additionally, the company is now working with the new ETFs in Hong Kong, which made their debut to rather low trading activity earlier this week. According to an interview cited in the report, CEO Sui Chung believes that their AUM will surpass $1 billion by the end of the year. According to Chung, the next markets to launch cryptocurrency ETFs are South Korea and Israel.
“South Korea is a market where ETFs have become the wrapper of choice for long-term savings,” he stated.
CF Benchmarks was established in 2017 and was purchased by Kraken in 2019 for an undisclosed amount.