Hong Kong Exchange and Clearing Company Ltd. (HKEX) has taken a new step that is of great interest to cryptocurrency investors. The company announced the launch of the “HKEX Crypto Asset Index Series”. This new index series provides reference prices for crypto assets such as Bitcoin and leading altcoin Ether in the Asian time zone. Thus, it aims to provide investors with a reliable measure. According to the statement made by HKEX, the new index will be operational on November 15. Here are the details of this development and its importance for the cryptocurrency space…
HKEX index focuses on Bitcoin and ETH
Hong Kong Exchanges and Clearing Company Ltd. announced that the “HKEX Virtual Asset Index Series” will be launched on November 15. The new indexes are expected to provide a single reference price for Bitcoin and Ether in the Asian time zone. HKEX CEO Bonnie Y Chan stated that this new index series was developed to respond to the growing demand for cryptocurrencies in the region. Chan said:
We are pleased to introduce the HKEX Crypto Asset Index Series. We aim to help investors make informed investment decisions by providing transparent and reliable real-time benchmarks, thereby supporting the development of the crypto asset ecosystem. This step will strengthen Hong Kong’s role as an international financial center.
The new index will include separate reference indices for Bitcoin and Ether, and will provide individual reference prices for both cryptocurrencies. According to HKEX, the index will be based on 24-hour trading volume-weighted reference spot prices. It will also be created with data collected from leading crypto exchanges.
Investor excitement in Asia has declined
The index will also be priced in US dollars, which will make it easier for investors. The index series is managed by CCData, a UK-based benchmark provider. It will also comply with the European Union’s benchmark regulations. This Bitcoin and altcoin collaboration provides investors with a reliable price index. It aims to increase confidence in the industry. Thus, HKEX aims to create a safe investment environment for investors with these indices structured in accordance with international standards.
HKEX took an innovative step in the sector by listing Asia’s first spot cryptocurrency exchange-traded funds (ETFs) in April. However, these ETFs failed to attract the expected investor interest. Although daily trading volume peaked at $4.73 million on October 16, this volume fell to $741,030 last Friday. HKEX’s new index series is also considered an opportunity to revive this stagnant investor interest. Hong Kong has recently attracted attention with its innovative decisions in the Bitcoin and altcoin space. HKEX’s new index move is also important in this respect. As a result, HKEX’s Crypto Asset Index Series aims to provide investors with a reliable benchmark. With this new index, investors will make more conscious decisions in their cryptocurrency investments.
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