Hong Kong’s stock exchange is making a bold move by introducing the first EU-regulated crypto index in Asia. This means investors can now trade Bitcoin and Ethereum alongside traditional stocks and bonds.
Hong Kong Embraces Crypto
The new index, called the HKEX Virtual Asset Index Series, will launch on November 15th. It will track the prices of Bitcoin and Ethereum in real-time, using a 24-hour volume-weighted average from major exchanges around the world. This means the index will reflect the global market value of these cryptocurrencies.
How the Index Works
The index will be updated daily at 4:00 PM Hong Kong time, reflecting the current US dollar price of Bitcoin and Ethereum. This will give investors a reliable and transparent benchmark for making informed investment decisions.
EU Regulations: A Sign of Legitimacy
The HKEX Virtual Asset Index Series is the first Hong Kong-developed index to comply with the EU Benchmark Regulation (BMR). This regulation was created after the 2008 financial crisis to ensure the accuracy and integrity of financial benchmarks. By adhering to these regulations, Hong Kong is signaling its commitment to building a safe and transparent crypto market.
A Boost for Hong Kong’s Financial Hub
This new index is a big deal for Hong Kong. It positions the city as a leader in the emerging world of crypto finance. By integrating cryptocurrencies into its stock market, Hong Kong is attracting investors and businesses looking for a regulated and reliable platform to trade digital assets.
