A latest era will dawn on the Hong Kong Stock Exchange (HKEX) next month because the stock market introduces a pioneering index in Asia designed for crypto. Market analysts see this as a trailblazing initiative that can open latest opportunities within the Asian financial hub because it integrates cryptocurrencies into the stock market.
HKEX Embraces Crypto
HKEX today announced a latest index series set to start out on November 15 specifically for cryptocurrencies, saying that it’s going to cover Bitcoin and Ethereum.
In an announcement, the Asian stock market boasts that the so-called HKEX Virtual Asset Index Series shall be the pioneering European Union (EU)-compliant crypto index within the region.
This can once more position Hong Kong as a top-tier financial hub known for its revolutionary initiatives like making cryptocurrency investments a part of the broader stock market.
HKEX Group Chief Executive Peter Chan said that HKEX is delighted to launch the brand new index series, emphasizing that the index can accommodate the regional demand for this “emerging asset class.”
Chan explained that the HKEX Virtual Asset Index Series will provide a transparent and reliable real-time benchmark, adding:
“We hope to assist investors make informed investment decisions, thereby supporting the healthy development of the virtual asset ecosystem and consolidating Hong Kong’s position as a world financial center.”
How The Recent Index Will Work
In keeping with HKEX, the virtual index series would allow Bitcoin and Ethereum to have real-time reference indices, saying, “The reference index is predicated on the 24-hour volume-weighted benchmark spot price of Bitcoin or Ethereum.”
Under the index, Bitcoin and Ethereum prices shall be computed based on a 24-hour volume-weighted benchmark based on aggregate market value across major asset exchanges worldwide.
HKEX also confirmed that the index would reflect current US dollar prices, with real-time tracking and updates.
The stock exchange noted that the index could have an everyday update day by day at 4:00 p.m. Hong Kong time and can reflect current prices in USD.
The reference exchange rate in the brand new index adjusts the Asia trading benchmarks with other benchmarks across the globe.
Chan said that the HKEX Virtual Asset Index Series strengthened the position of Hong Kong as a key innovator within the financial sector by incorporating cryptos and providing traders with more sophisticated instruments to measure the market value.
The EU Benchmark Regulation
HKEX said that the virtual index series can be the primary Hong Kong-developed asset index that follows the EU Benchmark Regulation (BMR).
The EU Benchmark Regulation is a reform implemented by the EU to make sure the integrity of indices getting used as benchmarks by its member states.
The financial regulation is an offshoot of the 2008 financial crisis that put stringent requirements on benchmark administrators.
Featured image from Pexels, chart from TradingView