The Hong Kong Virtual Asset Consortium (HKVAC) revealed changes to several of its cryptocurrency indices.
HKVAC rebalancescheduled for January 19, it will affect its core index, the HKVAC Top 5, as well as the main 1O index and the global index of major cryptocurrencies.
The HKVAC top 5 will exclude several prominent cryptocurrencies. For example, Solana (SUN), which has recently stood out for its significant advances in the market, will replace Ripple XRP.
Despite the tumultuous 2022 collapse from the FTX crypto exchange, which caused SOL prices to drop by over 95%, Solana has bounced notably. It now has a year-on-year increase of 436.5% and a market capitalization of $42.67 billion, making it the fifth largest cryptocurrency.
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Additional changes made by HKVAC include the removal of Filecoin (FIL), Binance USD (BUSD), maker (MSEK), Ivy (IVY) and TrueUSD (USD) of its Global Index of Large Cryptocurrencies, giving way to Near Protocol (NEAR), Internet Computer (PIC), immutable (SMEs), Optimism (OP), and injective (INY).
The re-evaluation of the index by HKVAC, which rates digital asset trading platforms and crypto market indices, is an important barometer of the ongoing changes in the crypto market. It reflects not only current market dynamics but also areas of potential growth, as seen by industry experts.
tron (TRX), for example, has impressively recovered from a bear market decline between 2018 and 2020, with a 100% rebound in 2023. However, it will be replaced in the Top 10 index by Avalanche (AVAX), which in turn has been boosted by its recent rally and partnerships with JPMorgan and Citi for asset tokenization initiatives.
These benchmarks used by investors to measure the performance of digital assets can greatly influence investment decisions. As such, the visibility and perceived market strength of the included cryptocurrencies may be significantly affected.
The HKVAC review aligns with Hong Kong's proactive approach towards the cryptocurrency sector. It occurs in the midst of preparations to welcome the place. Crypto ETFs in the semi-autonomous region after the US Securities and Exchange Commission (SEC) approved 11 Bitcoin spot ETF applications.
The Hong Kong Securities and Futures Commission (SFC) has insisted that crypto transactions must be carried out through platforms authorized by it or by authorized financial institutions, ensuring regulatory compliance and investor protection.
