BlackRock to use Kraken subsidiary’s Bitcoin price indexing for crypto offering

Join our Telegram channel to stay updated on coverage of the latest news

The largest asset management company in the world, BlackRock, plans to use the Kraken CF Benchmarks Bitcoin index price product for its first cryptocurrency offering. Over the past few months, BlackRock has accelerated its crypto plans, including a partnership with Coinbase.

BlackRock uses CF benchmarks Bitcoin Price Indexing

CF Benchmarks CEO Sui Chung told The Block that BlackRock’s Bitcoin product would be compared using CF Benchmark indices. CF Benchmarks is a subsidiary of Kraken, one of the oldest and largest cryptocurrency exchange companies.

CF Benchmarks is attempting to dominate the crypto indexing industry following the surge in demand for crypto assets from institutional investors despite the bear market. However, CF Benchmarks isn’t the only company focused on crypto index development. In 2021, S&P Dow Jones Indices released new cryptocurrency indices.

CF Benchmarks is a member of the Crypto Facilities group of companies and was launched five years ago. CF Benchmarks had only one client at its launch, the Chicago Mercantile Exchange. The company now has many customers around the world, such as Hashdex and WisdomTree.

Chung also said that there has been an increase in institutional interest in cryptocurrencies in recent months compared to the beginning of the year. She has also noticed a greater understanding of digital assets and people have now understood the differences between the different tokens and the fundamentals of each.

Punt Crypto casino banner

According to Chung, the deal between BlackRock and CF Benchmarks has been underway since 2021. He said the product has seen increasing demand and BlackRock’s announcement that it would use the index was proof of that demand.

BlackRock’s interest in crypto offerings

One of the notable developments in recent months is the partnership between BlackRock and Coinbase, the largest cryptocurrency exchange in the United States. In August, BlackRock announced a partnership with Coinbase to launch an institutional-grade Bitcoin trust.

The trust in question allowed investors to buy Bitcoin and keep it on the BlackRock platform. The offering would be made possible through Coinbase Prime. News of the partnership has sparked excitement across the cryptocurrency market, with SkyBridge founder and managing partner Anthony Scaramucci predicting the product will drive overwhelming demand for Bitcoin.

BlackRock’s exposure to the cryptocurrency market hasn’t just happened in the past couple of months. In early 2021, the BlackRock Global Allocation fund showed that the asset management company had gained exposure to Bitcoin via the CME Bitcoin futures offering. The contracts in question are settled in cash, using the reference rates provided by CF Benchmarks.

Join our Telegram channel to stay updated on coverage of the latest news

Leave a Comment