Kraken Subsidiary Emerges as Key Player in Multi-Billion ETF Surge: Impact on Crypto Market (BTC, ETH)

• Kraken’s subsidiary, CF Benchmarks, is profiting from the Bitcoin ETF boom, providing reference data for about $24 billion in crypto ETFs.
• CF Benchmarks licenses its benchmarks to Bitcoin ETF issuers, such as BlackRock, in exchange for increasing fees as the issuer’s assets under management rise.
• CF Benchmarks CEO, Sui Chung, anticipates the expansion of BTC ETFs into markets like Israel and South Korea following their approval in Hong Kong.

CF Benchmarks, a subsidiary of Kraken, is emerging as a beneficiary of the Bitcoin ETF boom, providing reference data for a significant amount of crypto ETFs and expecting further growth.

CF Benchmarks: A Silent Beneficiary of the Bitcoin ETF Boom

CF Benchmarks, a London-based subsidiary of US crypto exchange Kraken, is reportedly reaping significant benefits from the Bitcoin ETF boom. The company provides reference data for approximately $24 billion in crypto ETFs, positioning it as a quiet but substantial beneficiary of the recent surge in BTC ETFs.

Licensing Benchmarks to Bitcoin ETF Issuers

According to Bloomberg, CF Benchmarks licenses its benchmarks to Bitcoin ETF issuers, including BlackRock. These licenses are exchanged for fees that rise in tandem with an issuer’s assets under management. This model has proven profitable, especially with the recent approval of spot market BTC ETFs by the U.S. Securities and Exchange Commission (SEC) and their debut in Hong Kong.

Expansion of BTC ETFs into New Markets

In an interview with Bloomberg, CF Benchmarks CEO Sui Chung expressed his vision for the expansion of BTC ETFs into markets like Israel and South Korea, following their recent approval in Hong Kong. He noted that ETFs have become the preferred choice for long-term savings in South Korea, a market where digital assets have gained significant adoption.

Conclusion

With the continued growth and acceptance of Bitcoin ETFs, companies like CF Benchmarks stand to benefit significantly. As the crypto market continues to mature and more institutional investors enter the space, the demand for reliable benchmarking services will likely increase, positioning CF Benchmarks for continued success.