The Hong Kong Securities and Futures Commission (SFC) has announced that it will only allow retail trading for large-cap virtual assets included in at least two indices. The commission did not clarify the yardstick to qualify large-cap digital assets. However, the crypto community is narrowing down on the potential cryptos that may fit into the category.
In a Twitter post, the specialized crypto market resource shared a list of the cryptocurrencies that could fit into Hong Kong’s approved virtual assets for retail trading. The agency examined five indices, listing the various digital assets that populate them. The platform classified each digital asset based on the number of indices it appeared.
The indices that the team examined include Galaxy, 21 Shares, Bitwise, Nasdaq, and Wisdontree. Of the listed cryptos, only Bitcoin and Ethereum appeared across all five indices. Litecoin and Polkadot appeared in four, Bitcoin Cash and Solana appeared in three, while Cardano, Avalanche, Polygon, and Chainlink appeared in two indices.
According to Conor Ryder, a market analyst on Kaiko, the conservative nature of Hong Kong’s guidance toward the retail trading proposal eliminates the chances of having relatively illiquid altcoins on the list. This condition limits the opportunities for Bitcoin Cash to become one of the approved tokens by SFC.
Ryder also noted that Bitcoin Cash, Litecoin, and Polkadot appeared in at least three of the five listed indices. The open interest for all three tokens rose by about 15% at the realization of SFC’s intention to activate retail trading for qualified digital tokens. However, the funding rates for BCH have been low compared to Litecoin and Polkadot.
It is important to note that SFC is yet to release its list of approved tokens. All the cryptos mentioned across the crypto space result from independent analysis by acclaimed experts.
Hong Kong announced its intention to open its market for the retail crypto trading public on Monday, February 20. There are claims that China is encouraging this development, using it as a case study to gauge the possibilities in safe crypto trading.
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Source: Cryptocurrency - investing.com
