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Kraken’s unit, CF Benchmarks, stands as a key beneficiary of the booming spot-Bitcoin exchange-traded funds (ETFs). It provides reference data for $24 billion in cryptocurrency ETFs, primarily Bitcoin funds like BlackRock’s US-based $15.9 billion vehicle. As ETF assets under management grow, so do the licensing fees CF Benchmarks earns for providing its benchmarks. The firm, representing half of the crypto benchmarking market, collaborates with new Bitcoin ETFs in Hong Kong and aims for further expansion in South Korea and Israel. CEO Sui Chung projects the Hong Kong funds will reach $1 billion in assets under management by the end of 2024.
London-based CF Benchmarks witnessed revenue expand to £6 million ($7.5 million) in 2022 and anticipates mid-double-digit growth this year. Acquired by Kraken in 2019, CF Benchmarks continues to thrive as a critical player in Bitcoin derivatives pricing, despite recent ETF outflows in the US reducing Bitcoin’s price by $14,000 since its peak.
