Kraken Unit CEO Predicts Hong Kong Crypto ETFs to Surpass $1 Billion AUM by 2024
The CEO of CF Benchmarks, a subsidiary of cryptocurrency exchange Kraken, predicts that crypto exchange-traded funds (ETFs) in Hong Kong will overcome their lackluster start and accumulate over $1 billion in assets under management (AUM) by the end of 2024.
CF Benchmarks, based in London, offers reference data for crypto ETFs, primarily focusing on bitcoin products such as BlackRock’s IBIT.
The company currently oversees approximately $24 billion in AUM in this market, representing about half of the crypto benchmarking market.
Despite the relatively low trading volume during their recent debut, CF Benchmarks is now collaborating with the new ETFs in Hong Kong, according to a report by Bloomberg on Friday .
The company licenses its benchmarks to funds and charges fees that usually increase in line with the growth of AUM.
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. They noted that South Korea has embraced ETFs as a preferred long-term savings option, It has also shown high adoption rates for digital assets.
Previously, CF Benchmarks expected $5 billion of assets for US spot-Bitcoin ETFs that utilize its indexes this year. However, the amount has surpassed expectations, reaching over four times that estimate.
Chung predicts that Hong Kong products could accumulate as much as $1 billion in funds under management by the end of 2024.
The introduction of US ETFs led to a rally that propelled Bitcoin to a record high of nearly $74,000 in March.
However, since then, the token has experienced a decline of approximately $14,000 as investor demand for the funds waned.
On Wednesday, nearly a dozen US ETFs
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