Key Takeaways
- Ripple’s native token XRP loses its seat in the top 5 global crypto index
- Avalanche has replaced TRON and earned a place in the top 10 index
The crypto landscape is witnessing a transformative wave as the Hong Kong Virtual Asset Consortium (HKVAC) announced sweeping changes to its crypto indices. In a surprising move, the consortium has reshuffled its top 5 crypto index, top 10 crypto index, and overall crypto index, leading to the exclusion of several notable cryptocurrencies.
The headline-grabbing adjustment comes as Ripple’s native token XRP loses its seat in the top 5 global crypto index, making way for the ascent of Solana. This move underscores the ever-evolving nature of the crypto market, where established players can swiftly give way to emerging contenders.
A notable inclusion in the top 10 index is Avalanche, which has replaced TRON, marking its ascendancy after a robust performance in December 2023. According to Ryan Mcmillin, Chief Investment Officer at Merkle Tree Capital, Avalanche’s recent surge could be attributed to strategic partnerships with traditional banking heavyweights like JPMorgan and Citi. These collaborations aim to propel real-world asset tokenization initiatives, showcasing the growing intersection between traditional finance and the crypto space.
While Solana and Avalanche grab the spotlight, it’s essential to acknowledge TRON’s significant recovery since the challenging bear market cycle of 2018-2020. Despite plummeting by over 98% during that period, TRON has achieved a remarkable 100% rally in 2023, signaling resilience and potential amid market fluctuations.
Beyond the index adjustments, the HKVAC’s global large crypto index welcomes new additions, including Internet Computer, Near Protocol, Optimism (OP), Injective (INJ), and Immutable (IMX). These additions reflect the consortium’s commitment to staying abreast of the rapidly expanding and diversifying crypto market.
The HKVAC’s move comes at a time when Hong Kong intensifies efforts to bolster its crypto industry. The city’s financial regulator recently announced preparations to welcome spot crypto ETFs, inspired by the United States Securities and Exchange Commission’s approval of 11 spot Bitcoin ETF applications. However, the regulator emphasized that these ETFs must conduct crypto transactions through SFC-licensed platforms or authorized financial institutions, ensuring regulatory compliance.
The recent developments follow a Hong Kong lawmaker’s call for swift action after the U.S. approval of spot bitcoin exchange-traded funds. While the SFC expressed readiness to authorize retail access to spot virtual asset ETFs in December, the actual launch in Hong Kong lags behind the U.S.
In December, the Securities and Futures Commission and the Hong Kong Monetary Authority reviewed their existing policy, signaling a commitment to adapt to the evolving crypto landscape.
