The Hong Kong Stock Exchange (HKEX) announced the launch of a pair of indices that will offer a “reliable reference point” for the prices of bitcoin (BTC) and ether (ETH), a cryptocurrency on the Ethereum network. The index series will begin operating on November 15.
According to HKEX, these indices “provide investors with transparent and reliable benchmarks for BTC and ETH prices in the Asian time zone.” The main objective is toast a single reference price for these assetssince they are usually traded at different prices on world stock exchanges.
Bonnie Y Chan, CEO of HKEX, commented: “By offering transparent and reliable benchmarks in real time, we seek to enable investors to make informed investment decisions, which in turn will support the development of the virtual asset ecosystem and strengthen Hong Kong’s role as an international financial center.
According to what was reported, The Indices will consist of two main components: the Reference Index and the Reference Rate for bitcoin and ETH. The Reference Index is a 24-hour volume-weighted reference spot price, calculated in real time and denominated in US dollars. Uses aggregated prices from top-rated virtual asset exchanges. On the other hand, the Reference Rate is designed for the settlement of financial products and is calculated daily at 4:00 p.m. Hong Kong time.
This index series will be the first in Hong Kong to comply with the EU Benchmark Regulation (BMR).. The administration and calculation of these indices will be the responsibility of CCDataa UK-registered benchmark manager and provider of virtual asset data and indices, the HKEX says.
This announcement comes to one of the stock exchanges where exchange-traded funds (ETFs) for the price of bitcoin and ether are currently traded, approved in April of this year, as reported by CriptoNoticias.
Hong Kong has shown significant openness towards the cryptocurrency ecosystem, which could influence China’s policy towards these digital currencies. Analysis firms like Chainalysis suggest that this autonomous region could be a catalyst for China reconsider its multi-year ban on cryptocurrencies, as reviewed by CriptoNoticias.
The launch of these indices not only marks a technical breakthrough in measuring the price of digital assets, but also underlines the importance of Hong Kong in the development and the maturation of the global cryptocurrency market. With these indices, HKEX seeks to strengthen its position in the international financial landscape, providing investors with more precise tools for their investment decisions in bitcoin and ETH.
