Hong Kong Bourse to Offer Benchmark Indices for Bitcoin, Ethereum in Asia

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

October 27, 2024

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Hong Kong’s bourse operator HKEX is set to offer benchmark indices for Bitcoin and Ethereum pricing to support Hong Kong’s role as Asia’s digital asset hub. The platform said Monday it would launch the HKEX Virtual Asset Index Series on Nov. 15.

This index series aims to address the issue surrounding varying prices for virtual assets around the world. HKEX said it intends to enhance investor decision-making through providing up-to-the-minute benchmark prices.

HKEX Group CEO Peter Chan underscored the move’s importance, saying it will meet “regional demand for this rapidly emerging asset class.”

HKEX’s New Crypto Index Series Aims to Standardize Virtual Asset Pricing in Asia

Further, the series will feature volume-weighted indices for Bitcoin and Ethereum. These indices will be denominated in US dollars and updated in real-time. Additionally, it will include daily exchange rates calculated at 4:00 pm Hong Kong time, primarily for use in settling financial products.

This set of indices will follow the European Union’s Benchmark Regulation (BMR) standards. It will be managed and calculated jointly with a UK-registered benchmark administration entity. CCData, specializing in virtual asset data and index services, will also contribute to its management.

Further details on the methodology and design are expected to be disclosed soon.

Hong Kong Looks to Expands Crypto Infrastructure

This index series aligns with Hong Kong’s 2022 policy aimed at building a strong virtual asset ecosystem. The initiative is expected to boost public awareness of virtual asset investment patterns. It will do so by offering accurate, real-time data.

Moreover, the establishment of licensing requirements for virtual asset service providers and the formulation of crypto regulations are integral components of this transformation.

The Securities and Futures Commission (SFC) has been pivotal in expanding retail investor access to virtual assets, introducing mechanisms like Exchange Traded Funds (ETFs) for cryptocurrencies.

Additionally, the SFC is looking to speed up the licensing procedure for Virtual Asset Trading Platform (VATP) applicants who are currently considered as having provisional approval. This accelerated process will involve on-site assessments and dialogues with the senior leadership and governance of these entities. The regulator is expecting to issue the initial round of official licenses to VATP applicants before the year ends.