Hong Kong Virtual Asset Consortium Revamps Major Crypto Indices, Boosting its Crypto Sector
Summary:
The Hong Kong Virtual Asset Consortium (HKVAC) announced changes in its major cryptocurrency indices, leading to multiple high-profile cryptocurrencies being dropped. Among the changes, XRP was replaced with Solana in the top five, and TRON was replaced by Avalanche in the top 10. Additional cryptocurrencies were added to the global large crypto index. These changes align with Hong Kong's efforts to boost its crypto sector. The news follows the recent approval by Hong Kong's regulator of spot Bitcoin ETF applications, signaling the region's aim to advance its position in the crypto market.
The Hong Kong Virtual Asset Consortium (HKVAC) recently unveiled changes to its principal 5 cryptocurrency index, top 10 cryptocurrency index and comprehensive cryptocurrency index. This resulted in the removal of several high-profile cryptocurrencies from these indices. HKVAC's recent disclosure reveals that XRP (XRP) has been eliminated from its leading 5 international cryptocurrency index and replaced by Solana (SOL). Concurrently, Avalanche (AVAX) has gained a position in the top 10 index, ousting TRON (TRX). This comes in the wake of AVAX experiencing a surge as other cryptocurrencies fell in December 2023. As revealed by Cointelegraph, some analysts believe this surge can be attributed to recent partnership announcements, increased trading volumes and a sharp increase in total locked value. However, others contend it is due to a change in the valuation of altcoins. Ryan Mcmillin, Merkle Tree Capital's chief investment officer, told Cointelegraph that much of the AVAX hype may be related to traditional banks like JPMorgan and Citi's collaboration with the Avalanche Foundation for real-world asset tokenization projects. Regardless, TRON has shown substantial recovery since the bear market cycle of 2018-2020 when it suffered a drop of over 98%. In 2023, it saw a rally of 100%. The HKVAC also made other adjustments, adding Internet Computer (ICP), Near Protocol (NEAR), Optimism (OP), Injective (INJ), and Immutable (IMX) to the global large cryptocurrency index. This aligns with Hong Kong's continued efforts to strengthen the cryptocurrency sector within the region. On December 22nd, Hong Kong's financial regulator announced it was preparing to allow spot crypto ETFs, following the US Securities and Exchange Commission's recent approval of 11 spot Bitcoin ETF applications. However, the Securities and Futures Commission of Hong Kong stressed that crypto transactions by these ETFs must be handled on SFC-approved cryptocurrency platforms or authorized financial institutions.
Published At
1/14/2024 5:12:12 AM
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