The Hong Kong Exchanges and Clearing Limited (HKEX) is expanding beyond its core operations by venturing into index development—an emerging business area that enhances its ability to deliver comprehensive, one-stop financial services to clients.
Indices serve as transparent and systematic benchmarks for a wide range of asset classes. They empower market participants with reliable data, enabling more informed and trend-responsive investment decisions. By launching proprietary indices, HKEX aims to enrich the investment ecosystem, promote the adoption of passive investment strategies globally, and reinforce Hong Kong’s status as a leading international financial hub.
👉 Discover how virtual asset benchmarks are shaping the future of finance.
The Rise of Virtual Asset Indices
Virtual assets represent one of the fastest-growing asset classes in modern finance. According to CoinMarketCap, the total market capitalization of this sector has surged from just $50 billion in 2013 to over $2 trillion by May 2024—a staggering 40-fold increase in little over a decade.
Due to their decentralized nature, virtual assets often trade at different prices across exchanges, leading to significant price discrepancies throughout the ecosystem. This fragmentation poses challenges for investors seeking consistency and reliability.
Developing standardized virtual asset indices addresses this issue by offering a single, trusted reference price. These indices not only enhance market transparency but also serve as foundational benchmarks for new financial products such as exchange-traded funds (ETFs), structured notes, and derivatives. They enable both institutional and retail investors to navigate the rapidly evolving digital asset landscape with greater confidence.
Introducing the HKEX Virtual Asset Index Series
The HKEX Virtual Asset Index Series provides transparent and reliable benchmarks for Bitcoin and Ethereum prices during Asian trading hours. This initiative supports Hong Kong’s strategic goal of becoming a premier digital asset hub in Asia.
The index series includes:
- Reference Rates for Bitcoin and Ethereum (in USD)
- Settlement Reference Exchange Rates denominated in Hong Kong dollars (HKD)
Understanding the Components
Reference Rates reflect the 24-hour volume-weighted spot price of Bitcoin or Ethereum. These rates are calculated using real-time transaction data aggregated from top-tier, highly rated virtual asset exchanges. The data is compiled and updated continuously in U.S. dollars.
Settlement Reference Exchange Rates, on the other hand, are designed specifically for financial product valuation and settlement purposes. These are fixed daily at 4:00 PM Hong Kong time, aligning precisely with local market needs.
Why This Matters
By anchoring these benchmarks to a regulated, rule-based methodology and robust governance framework, HKEX ensures high-quality standards for market comparison and analytical accuracy. This level of rigor builds trust among issuers, investors, and regulators alike.
👉 See how real-time crypto benchmarks can transform investment strategies.
Key Features of the Index Series
✅ Robust Methodology
The index employs a rules-based calculation model designed to minimize manipulation risks and ensure stability—even during periods of extreme volatility.
✅ Reliability Through Collaboration
Developed in partnership with trusted local institutions and licensed virtual asset service providers, ensuring alignment with regional regulatory expectations.
✅ Representative Market Coverage
Prices are derived from volume-weighted last traded prices across the most reputable exchanges globally, providing a true reflection of market activity.
✅ Local Market Relevance
The daily settlement rate is calculated at 4:00 PM HKT, matching the operational timelines of Hong Kong-based financial institutions and product issuers.
✅ Resilience Under Volatility
Built-in safeguards help maintain index integrity during turbulent market conditions, including outlier detection and data validation protocols.
✅ Professional Governance
Governance follows international best practices, consistent with IOSCO principles for financial benchmarks. An independent oversight mechanism ensures transparency and accountability.
How the Index Is Calculated
The HKEX Virtual Asset Index Series is managed and computed by CCData, a UK-registered benchmark administrator and leading provider of virtual asset data and indices.
CCData supplies HKEX with high-integrity, real-time spot market data sourced exclusively from top-rated and representative virtual asset exchanges. These exchanges are evaluated based on criteria such as liquidity, trading volume, security standards, regulatory compliance, and operational transparency.
Data inputs undergo rigorous cleansing and validation before being used in the volume-weighted average price (VWAP) calculation. This ensures that the resulting index values are accurate, timely, and resistant to manipulation.
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Frequently Asked Questions (FAQ)
Q: What is a virtual asset index?
A: A virtual asset index tracks the performance of digital assets like Bitcoin or Ethereum using a standardized methodology. It serves as a benchmark for pricing, investment analysis, and financial product development.
Q: Why does Hong Kong need its own crypto index?
A: The HKEX index fills a critical gap by offering a reliable, Asia-focused benchmark tailored to local market hours and regulatory standards—supporting product innovation and investor protection in the region.
Q: How is the index protected against price manipulation?
A: The index uses data from highly rated exchanges only and applies strict data validation rules. Outliers are filtered out, and the volume-weighted method reduces the impact of abnormal trades.
Q: Who can use the HKEX Virtual Asset Index?
A: Financial institutions, ETF providers, wealth managers, fintech firms, and regulators can all leverage the index for product structuring, risk management, performance evaluation, and compliance reporting.
Q: Is the index available in real time?
A: Yes, the reference rates are updated in real time throughout the day. The settlement rate is published once daily at 4:00 PM HKT.
Q: Can investors directly invest in the index?
A: Not directly. However, the index can serve as an underlying benchmark for investment vehicles such as ETFs or index funds—similar to how traditional stock indices work.
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Final Thoughts
The launch of the HKEX Virtual Asset Index Series marks a significant milestone in the maturation of digital finance in Asia. By delivering a credible, transparent, and resilient benchmark for Bitcoin and Ethereum, HKEX is laying the groundwork for broader institutional adoption of virtual assets.
As global interest in passive investment strategies grows—especially in crypto markets—having standardized indices becomes essential. This initiative not only strengthens Hong Kong’s position as a forward-thinking financial center but also promotes innovation within a secure and well-governed environment.
With strong data integrity, regional relevance, and international credibility, the HKEX virtual asset indices are poised to become key infrastructure in the evolving digital economy.