Hong Kong to Introduce Novel Virtual Asset Index for Bitcoin and Ethereum

HKEX is set to launch a regulated virtual asset index for Bitcoin and Ethereum, which will serve as a unified benchmark for Asia. This move by Hong Kong is a significant step towards strengthening its position in the digital finance sector. The Virtual Asset Index Series, managed by HKEX in collaboration with CCData, a UK data supplier, will provide a reference price for Bitcoin and Ethereum in the Asian time zone. By offering real-time, volume-weighted benchmarks, the launch aims to address price discrepancies across global exchanges and establish Hong Kong as the digital asset hub in Asia. Notably, this index will adhere to the Benchmark Regulation (BMR) of the European Union, making it the first instance of Hong Kong adopting such internationally recognized financial criteria for digital assets. The project is expected to enhance transparency and facilitate informed investment decisions in the digital asset market by utilizing data from top exchanges. With a daily reference price calculated at 4:00 p.m. Hong Kong time, the index will provide consistency and reliability for Bitcoin trading in the Asia-Pacific region. This new benchmark is particularly beneficial for traders focused on Bitcoin and Ethereum, as it is likely to inspire investor confidence and serve as a robust tool for market participants. Its real-time pricing system enables it to cater to the evolving crypto economy and connect Eastern and Western markets. Additionally, Futu Securities, the first online broker in Hong Kong to offer direct Bitcoin trading for retail clients, has been attracting new investors by providing incentives such as Bitcoin, supermarket vouchers, and shares of prominent companies like Alibaba and Nvidia.