HKEX to launch virtual asset index series in boost for Hong Kong’s crypto hub ambitions

   Hong Kong Exchanges and Clearing (HKEX), the operator of Asia’s third-largest stock exchange, will launch a virtual asset index series to offer a reliable price benchmark for cryptocurrencies to support the city’s bid to become a leading digital assets hub. The HKEX Virtual Asset Index Series will offer benchmarks for bitcoin and ether pricing in Asian time zones, according to an HKEX statement on Monday. The gauges, which will be launched on November 15, aim to address the fragmented pricing of virtual assets by providing investors with a single and reliable price reference, as these assets often see pricing discrepancies across global exchanges, the statement said. The index series will meet the region’s growing demand for emerging digital assets, Bonnie Chan Yiting, CEO of HKEX, said in the statement. “By offering transparent and reliable real-time benchmarks, we seek to enable investors to make informed investment decisions, which will in turn support the development of the virtual-asset ecosystem and reinforce Hong Kong’s role as an international financial centre,” she said. The index series will feature a reference index and reference rate for bitcoin and ether. The reference index, a 24-hour volume-weighted spot price, will aggregate data from top-tier exchanges, delivering real-time US dollar-denominated pricing. The reference rate will support financial product settlement calculated daily at 4pm Hong Kong time. The initiative marks Hong Kong’s first EU Benchmarks Regulation-compliant virtual asset index, with UK-based data and index provider CCData serving as the official administrator, according to HKEX. The move aligns with Hong Kong’s policy to foster a robust ecosystem for virtual assets. During the annual FinTech Week two years ago, the government unveiled a range of policy measures aimed at developing the virtual assets industry. These included legalising retail investors’ participation with a new licensing regime and approving exchange-traded funds with exposure to bitcoin futures. Earlier this month, Hong Kong’s securities regulator approved HKVAX, the city’s third cryptocurrency exchange.