tl;dr
Kraken's acquisition of CF Benchmarks in 2019 has proven highly profitable, as the world's largest crypto indices provider plays a pivotal role in the Bitcoin ETFs market, resulting in millions in licensing fees for Kraken. The approval of 11 spot Bitcoin ETFs in 2024 has further solidified CF Bench...
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Kraken's acquisition of CF Benchmarks in 2019 has proven highly profitable, as the world's largest crypto indices provider plays a pivotal role in the Bitcoin ETFs market, resulting in millions in licensing fees for Kraken. The approval of 11 spot Bitcoin ETFs in 2024 has further solidified CF Benchmarks' market influence, with significant inflows and the expectation of continued substantial earnings. The company's strict rules for index inclusion and commitment to transparency enhance its reputation in the crypto market, positioning it for strong growth, especially with the expected introduction of Ethereum ETFs.
Kraken’s strategic acquisition of CF Benchmarks in 2019 has proven immensely lucrative in a market increasingly embracing spot Bitcoin ETFs. As the world’s largest crypto indices provider, CF Benchmarks plays a crucial role as an authorized benchmarks administrator in the Bitcoin ETFs market. This position has enabled Kraken to capitalize on the increasing demand for Bitcoin ETFs, translating into millions in licensing fees.
Cryptocurrency trading platform Kraken is generating millions in license fees from its subsidiary, CF Benchmarks, acquired in 2019. Although Kraken did not disclose the exact figure, the purchase was for a nine-figure sum. In 2022, pseudonymous researcher Hide Not Slide predicted Kraken’s significant earnings potential through CF Benchmarks. This forecast came true with the approval of 11 spot Bitcoin ETFs on January 10, 2024. CF Benchmarks CEO Sui Chung said the new ETFs were a big step for both the asset class and his company.
According to DefiLlama, investors have poured over $57 billion into Bitcoin ETFs, enabling CF Benchmarks to earn substantial licensing fees. Although CF Benchmarks does not disclose its earnings, it is expected to continue generating significant amount of money for the foreseeable future. With Ethereum ETFs expected this summer, CF Benchmarks looks set for strong growth.
CF Benchmarks enforces strict rules to ensure their indices are trustworthy. Exchanges must prevent fraud and follow strict KYC and AML checks to be listed in the index. This commitment to transparency and reliability bolsters the strong reputations of both CF Benchmarks and Kraken in the crypto market.
More about MicroStrategy Incorporated
MicroStrategy Incorporated provides global business analysis software and services. The company is headquartered in Tysons Corner, Virginia.
Sector: TECHNOLOGY
Industry: SERVICES-PREPACKAGED SOFTWARE
Revenue: 26320173000
Dividend Yield: None
Market Cap: None
Price/Earnings Ratio: -10.68
EPS: 32.62
Profit Margin: -0.174
Shares Outstanding: 489592000
Beta: 1756.95
Volatility: -0.775
Return on Equity: -0.055