Hong Kong Crypto ETFs on Kraken (KRAK) Set to Exceed $1 Billion AUM by 2024, Says CEO

• The CEO of CF Benchmarks, a Kraken subsidiary, predicts that crypto ETFs in Hong Kong will surpass $1 billion in AUM by 2024.
• Despite a slow start, CF Benchmarks is collaborating with the new ETFs in Hong Kong, expecting expansion to other countries soon.
• CF Benchmarks, which provides reference data for crypto ETFs, foresees significant revenue growth this year.

The CEO of CF Benchmarks predicts a bright future for crypto ETFs in Hong Kong, with assets under management expected to surpass $1 billion by 2024. Despite a slow start, the company sees potential for expansion into other countries.

CF Benchmarks Collaborates with New ETFs in Hong Kong

CF Benchmarks, a subsidiary of cryptocurrency exchange Kraken, is collaborating with the new ETFs in Hong Kong, despite their lackluster debut. The company, which provides reference data for crypto ETFs, currently oversees approximately $24 billion in AUM, representing about half of the crypto benchmarking market. They license their benchmarks to funds and charge fees that usually increase in line with the growth of AUM.

Expansion of Crypto ETFs to Other Countries

CF Benchmarks sees potential for crypto ETFs to expand to other countries as well. CEO Sui Chung anticipates their arrival in South Korea and Israel, noting that South Korea has embraced ETFs as a preferred long-term savings option and shown high adoption rates for digital assets. The company previously expected $5 billion of assets for US spot-Bitcoin ETFs that utilize its indexes this year, but the amount has surpassed expectations, reaching over four times that estimate.

CF Benchmarks Foresees Significant Revenue Growth

Headquartered in London, CF Benchmarks predicts revenue growth in the “mid-double digits” this year. The firm’s most recent UK accounts show that revenue reached £6 million ($7.5 million) in 2022. To support its expansion, the company plans to increase its workforce by approximately one-third, surpassing 40 employees.

Conclusion

Despite the slow start of crypto ETFs in Hong Kong, CF Benchmarks remains optimistic about their future. With plans for expansion and significant revenue growth, the company is poised to continue its role as a key player in the crypto ETF market. As the industry evolves, it will be interesting to see how these predictions pan out.