The recently debuting Hong Kong Spot Bitcoin ETFs are now predicted to reach $1 billion in assets under management (AUM) by the end of 2024. Indeed, Kraken unit CF Benchmark made the forecast in a recent discussion with Bloomberg.
The unit expressed its bullish stance on the investment vehicle’s performance by the end of the year. Moreover, they noted that success would not be limited to the United States, as it holds high hopes for Hong Kong’s recent offerings.
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Kraken Unit Predicts $1 Billion in Assets for Hong Kong ETFs
The digital asset market has seen the landmark approval of a host of Spot Bitcoin ETFs so far in 2024. Indeed, those approvals first began in the United States, where the US Securities and Exchange Commission (SEC) greenlit 11 investment vehicles. That marked the first such approval in the country.
Subsequently, that was followed by approval issued in Hong Kong. Although the investment vehicles did not perform as well as the US offerings, they did show promise. Moreover, it did display what was an important landmark moment for the market as a whole.
Additionally, many have high hopes for the product’s future. Specifically, Hong Kong Bitcoin ETFs have been predicted to reach $1 billion in AUM by the end of 2024. That forecast was shared by Kraken’s CF Benchmark, which currently represents half of the digital asset benchmarking market and works in collaboration with these various ETFs.
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The company’s CEO, Sui Chung, gave Bloomberg his opinion on the ETF offering’s growth prospects. Specifically, he notes that markets like South Korea and Israel could also adopt ETF approvals, similar to the US and Hong Kong.
Additionally, Chung expects the $1 billion mark to be reached by the start of 2025. In comparison, the firm had originally predicted $5 billion in AUM for United States Spot Bitcoin ETFs. In actuality, the figure exceeded that projection by four times. Only time will tell if Hong Kong can continue that trend of overperformance.