CF Benchmarks, a Kraken subsidiary, will collaborate with the world’s largest asset manager to develop its bitcoin offering. After announcing a partnership to Coinbase, BlackRock launched its Bitcoin private trust in August.
BlackRock will be using Kraken’s CF Benchmarks Bitcoin Index Pricing Product for its first cryptocurrency offering.
Sui Chung, CEO of CF Benchmark, stated that the bitcoin product of the world’s largest asset manager will be benchmarked using CF Benchmark’s indexes. BlackRock announced last month a partnership with Coinbase to provide institutional investors access to cryptocurrency.
It also launched a private trust that provides exposure to spot bitcoin for U.S-based institutional clients.
BlackRock did not immediately respond to a request for comment on the CF Benchmarks news.
Blackrock to use MSCI index for crypto assets
CF Benchmarks aims to become the MSCI index for crypto assets, as demand and interest continue to rise despite the fall in crypto asset prices. Other players are also creating crypto indexes.
This includes the industry leader, S&P Dow Jones Indices which created new cryptocurrency indices last Year.
CF Benchmarks is a member the Crypto Facilities group, and a member the Payward group. Payward is the operator and owner of Kraken Exchange, a crypto exchange that dates back to the beginnings of this type of platform.
Five years ago, CF Benchmarks was founded with one product and one client. It had the bitcoin reference rate (CME) and Chicago Mercantile Exchange(CME). The London-based firm serves clients all over the world, including Wisdomtree in Europe and Hashdex in Brazil.
Chung observed a growing interest in institutions over the past few months compared to six months ago.
Digital assets are more popular than ever
Chung stated that digital assets are now more well-understood than ever. People who have spoken to him understand the differences between bitcoin and ether. People are no longer able to lump bitcoin and Ethereum into one bucket. They are now more familiar with the basics of these assets.
Since 2021, the agreement with BlackRock was in place, Chung stated.
Chung stated that they wouldn’t launch products unless there was demand. BlackRock, for example, doesn’t launch products as a “kite flying” exercise. It’s not an easy decision .” .
BlackRock is not the first to experience bitcoin. In early 2021, the Global Allocation fund of BlackRock revealed that it had been exposed to bitcoin through the CME’s Bitcoin Futures Offering. According to a filing, these trades are cash-settled using CF Benchmarks rates.