The Hong Kong Virtual Asset Consortium (HKVAC) has updated its cryptocurrency indices, bringing significant changes to the top 5 and top 10 cryptocurrency indices. In particular, XRP was excluded from the world’s top five cryptocurrency indices, replacing Solana.
Solana’s Ascension and Tron’s Restoration
Solana’s emergence as the fourth-largest cryptocurrency by market capitalization last month was a key factor in its inclusion in the HKVAC index. Meanwhile, Tron showed a remarkable recovery, overcoming the decline in the 2018-2020 bear market and rebounding 100% in 2023.
AVAX’s growing appeal
Avalanche (AVAX) replaced TRON in the index, partly due to its growing appeal within the traditional financial world. Banks such as JPMorgan and Citi have partnered with the Avalanche Foundation for asset tokenization initiatives, highlighting the growing integration of traditional finance with blockchain technology.
New additions to large-scale cryptocurrency indices
HKVAC’s global large-cap cryptocurrency index welcomes new entrants such as Internet Computer (ICP), Near Protocol (NEAR), Optimism (OP), Injective (INJ) and Immutable (IMX), highlighting the dynamic nature of the cryptocurrency market and their reflects the new importance of Digital assets.
Hong Kong’s active stance on cryptocurrency
This index revision is consistent with Hong Kong’s proactive approach to the cryptocurrency sector. Financial regulators in the region announced readiness to welcome spot cryptocurrency ETFs after the U.S. SEC approved applications for 11 spot bitcoin ETFs in January. Hong Kong’s Securities and Futures Commission (SFC) insists that cryptocurrency trading by these ETFs must be conducted through SFC-licensed platforms or approved financial institutions to ensure regulatory compliance.
Changing cryptocurrency environment
Changes in the HKVAC cryptocurrency index highlight the changing landscape of the cryptocurrency market. The inclusion and exclusion of certain cryptocurrencies reflects changes in market trends, technological developments and investor interest, further highlighting the dynamic and fast-paced nature of this sector.