As Hong Kong strengthens its crypto regulatory framework and embraces ETFs, the Hong Kong Virtual Asset Consortium (HKVAC) has updated its crypto indexes, showing a preference for tokens with market performance and growing industry partnerships.
Ripple’s XRP Loses Ground in HVAC’s Crypto Index Revamp
The Hong Kong Virtual Asset Consortium has revised its key crypto indexes, notably excluding Ripple’s XRP. HKVAC, a non-profit organization that rates digital asset trading platforms and compiles crypto market indexes, announced these revisions in a recent statement. The adjustments include the top five, top 10, and overall crypto indexes.
December 2023 saw a notable shift in the crypto market, with Solana (SOL) surpassing XRP in market capitalization, becoming the fourth-largest cryptocurrency. This was a significant factor in HKVAC’s decision to replace XRP with SOL in its top five global crypto index.
Furthermore, the Avalanche (AVAX) token made its way into the top 10 index, following a surge in its value amidst a general downturn in the crypto market at the end of 2023. This addition came alongside partnerships between traditional finance businesses like JPMorgan and Deloitte with the Avalanche Foundation for asset tokenization initiatives.
HKVAC’s January statement also noted the inclusion of new cryptocurrencies such as Internet Computer’s ICP, Optimism (OP), Injective (INJ), and Immutable (IMX) in its global large crypto index. These updates coincide with Hong Kong’s continued efforts to strengthen its position in the crypto industry.
The region’s financial regulator announced in December 2023 its readiness to welcome spot crypto exchange-traded funds (ETFs). This development follows the United States Securities and Exchange Commission’s approval of 11 spot Bitcoin ETF applications.
The Hong Kong Securities and Futures Commission (SFC) stated,
Demand for these products has also increased in Hong Kong. In light of these developments, the SFC has introduced regimes that allow the offering of certain [virtual asset] products to the Hong Kong public with appropriate investor protection safeguards.
Do you think XRP deserved to be bumped in favor of SOL? Share your thoughts and opinions about this subject in the comments section below.