As the Hong Kong ETFs is currently making news of their underperformance, CF Benchmarks, a branch of the cryptocurrency exchange Kraken and a benchmark for crypto exchanges is making huge gains from rise in spot Bitcoin exchange-traded funds (ETFs). The firm, which provides price data for the ETFs, is now handling $24 billion worth of crypto ETFs, according to a Bloomberg report, which roughly represents half of the crypto benchmarking market.
Hong Kong ETFs projected to reach a staggering target
The firm is also now working with the new Hong Kong ETFs, which started off with a low trading volume. The CEO of the firm, Sui Chung predicts that despite not having a great beginning with less than $13 million, the ETFs in Hong Kong are projected to reach a staggering $1 billion in assets under management (AUM) by the end of 2024, as reported by Bloomberg. South Korea and Israel are the next markets to list crypto ETFs, as the South Korean markets have become a choice for long-term savings as per Chung
The exceeding demand of US spot ETFs
Using its data, the firm initially expected $5 billion in assets this year for the U.S. spot Bitcoin ETFs. However, actual demand has exceeded the projection, surpassing four times the expected amount, as disclosed by Chung.
Hong Kong had granted approval for spot Bitcoin and Ethereum ETFs in mid-April, just a few months after the U.S. Securities and Exchange Commission (SEC) gave the green light to several spot Bitcoin ETFs in the U.S. However, the Ethereum ETFs have been facing a lot of roadblocks in their way to approval which may extend beyond this year as the SEC is being rigid in its moves.
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