According to a recent report from Bloomberg, the CEO of CF Benchmarks, a subsidiary of the popular cryptocurrency exchange Kraken, has made a bold prediction regarding the future of cryptocurrency exchange-traded funds (ETFs) in Hong Kong. Despite a somewhat rocky start, the CEO anticipates that these ETFs will amass a staggering $1 billion in assets under management (AUM) by the conclusion of 2024.

CF Benchmarks, headquartered in London, specializes in providing reference data for various crypto ETFs, predominantly those focused on Bitcoin, such as BlackRock's IBIT. Currently, CF Benchmarks boasts an impressive AUM of approximately $24 billion within this market segment, representing roughly half of the entire crypto benchmarking market.

The CEO, Chung, envisions that the trend of crypto ETF adoption will extend beyond Hong Kong, identifying South Korea and Israel as promising markets poised to embrace these investment vehicles. Chung highlights South Korea's propensity for utilizing ETFs as a preferred option for long-term savings, indicating a strong potential for growth and adoption in this region.

Established in 2017, CF Benchmarks gained significant traction in the industry before being acquired by Kraken in 2019 for a substantial nine-figure sum. Despite their meteoric rise and influence within the crypto benchmarking sector, CF Benchmarks refrained from immediate comment when approached by CoinDesk for further insights into their projections and market observations.

This optimistic outlook for the expansion of crypto ETFs, coupled with CF Benchmarks' strategic positioning within the market, underscores the increasing mainstream acceptance and integration of digital assets into traditional investment portfolios. As regulatory frameworks evolve and investor sentiment continues to evolve, the cryptocurrency industry appears poised for continued growth and maturation on a global scale.