London-based CF Benchmarks, a unit of crypto change Kraken, is positioning itself as a notable beneficiary of the surge in spot Bitcoin ETFs this 12 months and shares an more and more bullish outlook for the ETF market in Hong Kong and the US via 2024.
In accordance to Bloomberg, with the latest debut of those ETFs within the US in January and their subsequent launch in Hong Kong, CF Benchmarks has turn into a key reference knowledge supplier for about $24 billion of cryptocurrency ETFs. This determine is dominated by Bitcoin funds, together with the $15.9 billion automobile supplied by BlackRock within the US.
Bitcoin ETFs Set To Shine In Hong Kong
CF Benchmarks licenses its benchmarks to the ETFs and earns charges primarily based on belongings beneath administration. The corporate at present represents round half of the crypto benchmarking market and is actively collaborating with the brand new Bitcoin ETFs in Hong Kong.
Sui Chung, the CEO of CF Benchmarks, informed Bloomberg that he envisions increasing crypto ETFs into different markets similar to South Korea and Israel. Chung notes that South Korea, specifically, has seen ETFs turn into the popular choice for long-term financial savings and has proven a excessive degree of adoption of digital belongings.
Notably, whereas CF Benchmarks initially anticipated $5 billion in belongings for the US spot-Bitcoin ETFs using its indexes, the precise quantity has exceeded 4 instances that determine.
Trying forward, Chung expects the Hong Kong merchandise to build up as a lot as $1 billion in funds beneath administration by the tip of 2024.
Contrasting Developments
The introduction of ETFs within the US sparked a major rally, propelling Bitcoin to an all-time excessive of almost $74,000 in March. Nevertheless, since then, the token has skilled a decline, shedding roughly 20%, to a present buying and selling value of $59,000 as investor demand for the funds waned.
On Wednesday, the group of almost a dozen US merchandise confronted its largest day by day web outflow, leading to belongings beneath administration standing at roughly $47 billion.
Alternatively, Hong Kong’s rising market recorded a buying and selling quantity of HK$48.91 million (roughly US$6.26 million) for six Hong Kong-based ETFs on Could 3.
Among the many six Hong Kong spot ETFs for digital belongings, the Bitcoin ETF commanded the lion’s share of buying and selling quantity, accounting for HK$43.41 million. Moreover, the Ethereum ETF recorded a buying and selling quantity of HK$5.5 million.
In distinction to the Hong Kong market, the buying and selling quantity of US-based Bitcoin ETFs soared to a formidable $1.72 billion on Could 2.
Featured picture from Shutterstock, chart from TradingView.com