Bloomberg’s report on ETF trend in Hong Kong

Shruti Govil
Shruti Govil May 11, 2024
Updated 2024/05/11 at 5:04 AM

Reference data for cryptocurrency ETFs with a total AUM of $24 billion is provided by London-based CF Benchmarks. These are primarily bitcoin products, such as BlackRock’s IBIT. Additionally, the company is now working with the new ETFs in Hong Kong, which made their debut to rather low trading activity earlier this week.

Despite an unlucky start, the CEO of CF Benchmarks, a division of cryptocurrency exchange Kraken, believes that by the end of 2024, the assets under management (AUM) of cryptocurrency exchange-traded funds (ETFs) in Hong Kong would total $1 billion, according to Bloomberg.

BlackRock’s IBIT and other bitcoin-focused ETFs are among the products for which London-based CF Benchmarks provide reference data. With an approximate market capitalization of $24 billion, it claims to account for about half of the cryptocurrency benchmarking market.

The new ETFs in Hong Kong, which made their debut earlier this week to a relatively low trading volume, are also being worked on by the firm. Despite this, according to CEO Sui Chung’s predictions, their AUM will hit $1 billion by year’s end, the report stated, citing an interview.

Crypto ETFs are expected to be listed in South Korea and Israel, according to Chung.

“South Korea is a market where ETFs have become the wrapper of choice for long-term savings,”

according to him.

CF Benchmarks was founded in 2017 and was purchased by Kraken in 2019 for a reported nine-figure amount.

CoinDesk asked the company for more comment, but they didn’t get back to them right away.

With asset under management (AUM) exceeding HKD2.4 billion as of May 6, the first week of the recently introduced ETFs has surpassed all expectations, demonstrating the strong investor interest and confidence in the market. This milestone demonstrates the progress and maturity of Hong Kong’s digital finance landscape by highlighting the successful marriage of traditional financial systems with state-of-the-art digital asset solutions.

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