Kraken's CF Benchmarks Engages with 50 Firms amid SEC's Approval of Bitcoin ETFs: Report

<p>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).</p><p>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 <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a>
venues that meet stringent criteria.</p><p>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. </p><p>Global Interest and Regulatory Dynamics</p><p>As the regulatory landscape evolves, asset managers
and banks are at the forefront of the wave, exploring <a href="https://www.financemagnates.com/tag/bitcoin-etf/" target="_blank" rel="follow">spot Bitcoin ETF</a> pricing
to capitalize on the growing crypto market.</p><p>The recent <a href="https://www.financemagnates.com/cryptocurrency/breaking-the-sec-approves-spot-bitcoin-etf/" target="_blank" rel="follow">approval from the SEC</a> has set off a
frenzy among investors. On January 11 and 12, trading volumes for spot <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a>
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.</p><p>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.</p><p>US Spot Bitcoin ETF Debut </p><p>Meanwhile, the highly anticipated launch of 11 spot
Bitcoin ETFs in the United States recently <a href="https://www.financemagnates.com/cryptocurrency/us-bitcoin-etfs-failed-on-the-expectations-2-day-net-inflows-at-819-million/" target="_blank" rel="follow">led to a significant correction</a> in the value of Bitcoin, plummeting by around 10%. The crypto market, fueled by
widespread anticipation, expected these ETFs to democratize access for retail
and institutional investors. </p><p>However, within the initial 48 hours, the reality
was starkly different, as the market witnessed a lukewarm response with only $1.4
billion in new funds flowing into the ETFs, Finance Magnates reported.</p><p>The 11 newly introduced Bitcoin ETFs in the US
attracted a mere $1.4 billion in new funds. However, the Grayscale Bitcoin ETF,
converted from the Grayscale Bitcoin Trust, experienced a substantial outflow
of $579 million, highlighting an unexpected turn of events.</p>

This article was written by Jared Kirui at www.financemagnates.com.