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Kraken’s CF Benchmarks in Talks with 50 Firms: Report

Kraken’s subsidiary, CF Benchmarks, is in talks with 50 firms seeking its services for spot Bitcoin ETF pricing. This development follows the recent approval of 11spot Bitcoin ETF applications by the US Securities and Exchange Commission (SEC).

According to a report by the Financial News, CF Benchmarks is providing data to major players like BlackRock and Franklin Templeton. Currently, six out of the 11 approved spot bitcoin ETF providers leverage CF Benchmarks’ index to track pricing data from various exchange venues that meet stringent criteria.

While roughly half of the firms in talks with CF Benchmarks are from the US, the increasing interest from Europe and Asia signals a global shift as regulatory developments in the US prompt a ripple effect worldwide.

Global Interest and Regulatory Dynamics

As the regulatory landscape evolves, asset managers and banks are at the forefront of the wave, exploring spot bitcoin ETF pricing to capitalize on the growing crypto market.

The recent green light from the SEC has set off a frenzy among investors. On January 11 and 12, trading volumes for spot bitcoin ETFs soared to $7.7 billion, reflecting a remarkable start for this financial instrument. CF Benchmarks’ CEO, Sui Chung, as quoted by the Financial News, has acknowledged the initial success but emphasizes the need for realistic expectations.

Chung foresees a gradual rise in inflows as more distribution channels open up in the coming months and years. He has revealed a strategic expansion, with the team set to grow by approximately 50%. The expansion will span technology, index designing, and product management, reflecting CF Benchmarks’ dedication to maintaining its position as a frontrunner in spot Bitcoin ETF pricing.

Expect ongoing updates as this story evolves.

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