HONG KONG – Hong Kong Exchanges and Clearing Limited (HKEX) has launched a cryptocurrency benchmark to meet the city’s demand for real-time data on the emerging asset class.
Hong Kong’s stock exchange operator announced the HKEX Virtual Asset Index Series on Oct 28, which will provide single, real-time and daily reference prices for Bitcoin and Ether in the Asian time zone.
The index will go live on Nov 15.
“We’ve seen rising demand for this fast-emerging asset class and with that, a greater need for transparent and reliable benchmarks to enhance understanding and price discovery,” a HKEX spokesperson told The Straits Times.
When asked if the index would be expanded to include other virtual assets and digital currencies, the spokesperson noted that “the current focus will be on successfully launching the index series and educating the market”.
Most cryptocurrency benchmarks, such as those from CoinDesk and CoinMarketCap, use Coordinated Universal Time to track the price and performance of cryptocurrencies, which are often also traded at different prices across global exchanges.
As at 4.45pm Singapore time on Oct 28, for example, Bitcoin’s price was listed at US$68,268 on CoinMarketCap and US$68,303 on CoinDesk.
The new index will provide a 24-hour volume weighted reference spot price for Bitcoin and Ether, using prices aggregated from top-rated virtual asset exchanges, calculated in real-time and denominated in US dollars.
There will also be a reference rate for the two cryptocurrencies, designed for the settlement of financial products and calculated daily at 4pm Hong Kong time.
The index series, which will be the first EU Benchmarks Regulation-compliant virtual asset index series developed in Hong Kong, will be administered and calculated by CCData, a UK-registered benchmark administrator and virtual asset data and index provider.
In a statement, HKEX chief executive Bonnie Chan noted that
