Which Cryptocurrencies Are Included in Hong Kong’s Approved Token Indices?

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In recent years, Hong Kong has emerged as a key player in the global virtual asset landscape. With the government’s clear push toward Web3.0 and the Securities and Futures Commission (SFC) finalizing regulatory frameworks for virtual asset trading, a new era of institutional-grade digital finance is unfolding. One pivotal development is the role of virtual asset indices—not just as market benchmarks, but as gatekeepers to retail access.

Under the new rules, any cryptocurrency available for retail trading in Hong Kong must be included in at least two accepted virtual asset indices, each published by different index providers. This requirement positions these indices as critical arbiters of market legitimacy, shaping which digital assets can reach mainstream investors.

Understanding Hong Kong’s Virtual Asset Index Requirements

The SFC has laid out strict criteria to ensure transparency, fairness, and alignment with global financial standards:

  1. Exclusion of Self-Interested Parties: Indices issued by virtual asset issuers or cryptocurrency exchanges are not eligible.
  2. Alignment with Traditional Finance Standards: At least one index must comply with the IOSCO Principles for Financial Benchmarks and be issued by a firm with proven experience in traditional securities market indices.

These rules effectively grant a form of “licensed authority” to established financial institutions. Only those with credibility in conventional markets can influence which tokens gain retail access—a move designed to prevent manipulation and promote stability.

👉 Discover how global financial standards are reshaping crypto accessibility

Recognized Virtual Asset Index Providers

Currently, six major institutions are widely recognized for issuing compliant and credible virtual asset indices:

Among these, Galaxy, CF Benchmarks, and Wilshire stand out due to their adherence to IOSCO principles and track records in traditional finance:

These providers set the benchmark—not just numerically, but structurally—for what constitutes a trustworthy virtual asset index.

Eligible Cryptocurrencies for Retail Trading

Based on current index inclusions and SFC guidelines, the following 13 cryptocurrencies are potential candidates for retail trading approval:

However, inclusion in an accepted index is only one of three requirements. To be approved for retail trading, an asset must also pass:

  1. Exchange Due Diligence – Comprehensive review by licensed platforms
  2. Large-Scale Asset Criteria – Minimum market cap, liquidity, and security standards
  3. SFC Written Approval – Final regulatory sign-off

Notably, assets like Solana (SOL) and Bitcoin Cash (BCH) face uncertainty due to network instability and declining adoption trends, potentially excluding them despite index presence.

The Business Viability of Virtual Asset Indexing

While crypto indexing may seem like a niche data service, it carries significant long-term strategic value—especially under Hong Kong’s evolving framework.

Historically, many Web3 startups attempted to build virtual asset indices, but few survived. The most successful models today combine indexing with broader financial services:

1. Index + Asset Management Products

Firms like Galaxy and 21Shares don’t just publish indices—they launch ETFs and index funds tied to them. For example:

This integration creates recurring revenue through management fees and strengthens market influence.

2. Index + Financial Media Integration

Collaborations like Wilshire and Financial Times enhance visibility and trust. By embedding indices into daily market reports, they become go-to references for institutional decision-making.

Lessons from Traditional Index Giants: The S&P Model

To understand the future of crypto indexing, look no further than S&P Global.

Over the past decade:

Despite this success, index revenue accounts for only 11–12% of total company income, dwarfed by credit ratings and market intelligence.

Yet the model reveals three enduring truths:

  1. High Margins: Once established, index maintenance costs are low while client base scales.
  2. Recurring Revenue Streams: From licensing fees to subscription models, income compounds over time.
  3. Winner-Takes-Most Dynamics: First-movers with trusted brands dominate—like S&P 500 in equities.

👉 See how early-mover advantage shapes crypto index dominance

Future Outlook: Three Key Trends for Hong Kong’s Virtual Asset Indices

1. Profitability Requires Patience

Expect a 3–5 year horizon before virtual asset indices become profitable. Revenue hinges on:

Until then, indexing remains a strategic investment—not a quick return.

2. Indexing as a Supporting Function

Like S&P, future leaders will likely be firms whose core business isn’t indexing—but use it to strengthen their ecosystem:

Indexing enhances credibility; it rarely stands alone.

3. Advantage Lies with Traditional Financial Institutions

Due to SFC’s stringent issuer requirements and the need for brand trust, traditional finance players are better positioned than Web3 startups.

Would you trust an index from Bloomberg—or an unknown DeFi protocol? In regulated markets, reputation matters.

That said, startups can still play a role by partnering with compliant entities or focusing on niche segments like DeFi or NFT indices.

Frequently Asked Questions (FAQ)

Q: Why are virtual asset indices so important in Hong Kong?

A: Because they determine which cryptocurrencies can be legally offered to retail investors. Without inclusion in two approved indices, a token cannot be listed on licensed exchanges for public trading.

Q: Can any company create a virtual asset index?

A: No. Under SFC rules, indices from crypto exchanges or token issuers are invalid. Only independent providers complying with IOSCO standards qualify.

Q: Is Bitcoin definitely approved for retail trading?

A: While not officially confirmed, BTC is included in multiple compliant indices (e.g., BGCI, CF Benchmarks), passes size and liquidity tests, and is highly likely to receive SFC approval.

Q: How do index providers make money?

A: Through licensing fees (from ETFs/ETPs), data subscriptions (for traders and analysts), and royalty payments when derivatives reference their benchmarks.

Q: Will more cryptocurrencies be added over time?

A: Yes—but slowly. The SFC prioritizes stability and investor protection. New additions will require strong fundamentals, proven track records, and broad market acceptance.

Q: What happens if a cryptocurrency drops out of an index?

A: It risks losing eligibility for retail trading unless it remains in another accepted index. Exchanges may delist it if it fails to meet ongoing requirements.

Final Thoughts: A Gateway to Institutional Crypto Adoption

Hong Kong’s emphasis on virtual asset indices marks a turning point—from speculative trading to structured finance. By aligning crypto with traditional benchmarking practices, regulators are building a bridge between legacy capital markets and digital innovation.

For investors, this means greater transparency and safer access to digital assets. For businesses, it presents a rare opportunity: to shape the benchmarks that define the next generation of financial products.

As the ecosystem matures, those who establish trusted indices today may become the standard-setters of tomorrow.

👉 Explore how benchmark-driven investing is transforming crypto markets