Hong Kong Makes History With Asia’s 1st EU-Regulated Crypto Index Launch

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As a seasoned analyst with over two decades of experience navigating the dynamic world of finance, I am thrilled to witness the bold steps taken by HKEX in integrating cryptocurrencies into their stock market. Having seen the rapid growth and transformation of technology-driven assets, I can confidently say that this move is not only timely but also strategic in positioning Hong Kong as a global leader in financial innovation.

As a researcher, I am excited to anticipate the arrival of a groundbreaking development at the Hong Kong Stock Exchange (HKEX) coming next month. This is when the stock market will launch an innovative index in Asia specifically tailored for crypto assets. In my professional opinion, this bold move marks a significant step forward for the Asian financial landscape, as it brings cryptocurrencies into the traditional stock market arena. I believe that this integration will unlock fresh opportunities within the Asian financial hub and potentially reshape the way we perceive and interact with digital currencies.

HKEX Embraces Crypto

Today, HKEX unveiled an upcoming index series, starting from November 15, which is exclusively designed for cryptocurrencies. They stated that this index will encompass both Bitcoin and Ethereum.

The Asian stock market proudly announces that its HKEX Virtual Asset Index Series is set to lead as the first EU-compatible cryptocurrency index in the region.

By doing this, Hong Kong will yet again solidify its reputation as a premier financial center, renowned for its groundbreaking endeavors such as integrating cryptocurrency investments within the larger stock exchange market.

Peter Chan, Group CEO of HKEX, expressed excitement about the debut of their new index series. He stressed that this index is designed to cater to the growing interest in this “evolving investment category” within the region.

Chan clarified that the HKEX Virtual Asset Index Series would offer a clear and dependable real-time reference point, further noting:

“We hope to help investors make informed investment decisions, thereby supporting the healthy development of the virtual asset ecosystem and consolidating Hong Kong’s position as an international financial center.”

How The New Index Will Work

As per HKEX, the virtual index series will provide Bitcoin and Ethereum with real-time benchmark indices. In simpler terms, these indices are derived from the 24-hour volume-weighted average spot price of Bitcoin or Ethereum.

The prices for both Bitcoin and Ethereum will be calculated using a 24-hour, volume-weighted average that takes into account the combined market values of these cryptocurrencies across significant exchanges around the globe.

Additionally, HKEX verified that the index will be based on real-time US dollar pricing, featuring continuous monitoring and updates.

The stock market has indicated that its index undergoes daily updates at 4:00 PM Hong Kong Standard Time, displaying real-time prices in U.S. dollars.

In the newly updated index, the reference exchange rate aligns the Asian trading benchmarks with similar benchmarks from around the world.

Chan pointed out that the HKEX Virtual Asset Index Series significantly boosts Hong Kong’s status as a leading innovator within the financial industry. By integrating cryptocurrencies and offering advanced tools for traders, it now becomes possible to accurately assess the market worth.

The EU Benchmark Regulation

The Hong Kong Exchange announced that their Virtual Index Series will mark a first, as it’s an asset index originating from Hong Kong which conforms to the European Union Benchmark Regulation (BMR).

The EU Benchmark Regulation represents a change enacted by the European Union to maintain the reliability and accuracy of indices utilized as benchmarks across its member countries.

The financial regulations we have now were created as a response to the 2008 financial crisis, imposing strict conditions on entities responsible for managing benchmarks.

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2024-10-29 06:12