Introduction
Hong Kong is strengthening its crypto regulatory framework and embracing exchange-traded funds (ETFs). In line with these developments, the Hong Kong Virtual Asset Consortium (HKVAC) has made revisions to its crypto indexes, prioritizing tokens with strong market performance and growing industry partnerships. This article explores the recent updates made by the HKVAC and the reasons behind its decision to exclude Ripple's XRP from its indexes.
Revisions to Crypto Indexes
The Hong Kong Virtual Asset Consortium, a non-profit organization responsible for rating digital asset trading platforms and compiling crypto market indexes, recently announced revisions to its key indexes. These revisions include the top five, top 10, and overall crypto indexes. Notably, Ripple's XRP has been excluded from these indexes.
SOL Surpasses XRP in Market Capitalization
December 2023 witnessed a significant shift in the crypto market, with Solana (SOL) surpassing XRP in terms of market capitalization. This milestone positioned SOL as the fourth-largest cryptocurrency. Recognizing this market trend, the HKVAC made the decision to replace XRP with SOL in its top five global crypto index.
Avalanche Token Enters the Top 10 Index
Amidst a general downturn in the crypto market at the end of 2023, the Avalanche (AVAX) token experienced a surge in value. This impressive performance led to the inclusion of AVAX in the HKVAC's top 10 index. Additionally, partnerships between traditional finance businesses such as JPMorgan and Deloitte with the Avalanche Foundation for asset tokenization initiatives further solidified its position in the index.
Inclusion of New Cryptocurrencies
The HKVAC's January statement highlighted the inclusion of several new cryptocurrencies in its global large crypto index. Internet Computer's ICP, Optimism (OP), Injective (INJ), and Immutable (IMX) were among the newly added tokens. These updates demonstrate Hong Kong's commitment to strengthening its presence in the crypto industry.
Hong Kong's Efforts to Support Crypto Industry
Hong Kong's financial regulator, the Securities and Futures Commission (SFC), announced in December 2023 its readiness to welcome spot crypto ETFs. This decision followed the approval of 11 spot Bitcoin ETF applications by the United States Securities and Exchange Commission. The SFC stated that the demand for these products has been increasing in Hong Kong and introduced regimes to offer certain virtual asset products to the Hong Kong public with appropriate investor protection safeguards.
Conclusion
The Hong Kong Virtual Asset Consortium's revisions to its crypto indexes reflect the changing dynamics of the crypto market and the region's commitment to fostering a robust crypto industry. By prioritizing tokens with strong market performance and forging partnerships with traditional finance businesses, Hong Kong is positioning itself as a key player in the global crypto landscape. Share your thoughts on the exclusion of XRP and the inclusion of SOL and other cryptocurrencies in the HKVAC's indexes in the comments section below.
Frequently Asked Questions
How Does Gold Perform as an Investment?
Supply and demand determine the gold price. It is also affected negatively by interest rates.
Because of their limited supply, gold prices can fluctuate. Additionally, physical gold can be volatile because it must be stored somewhere.
How much of your portfolio should you hold in precious metals
First, let's define precious metals to answer the question. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them extremely valuable for trading and investing. Gold is today the most popular precious metal.
There are also many other precious metals such as platinum and silver. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. They do not always move in the same direction. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors expect lower interest rate, making bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. Since these are scarce, they become more expensive and decrease in value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
Which precious metals are best to invest in retirement?
The best precious metal investments are gold and silver. They're both easy to buy and sell and have been around forever. These are great options to diversify your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is stable and very secure. It is a good way for wealth preservation during uncertain times.
Silver: Investors have always loved silver. This is a great choice for people who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.
Rhodium – Rhodium is used to make catalytic conversions. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.
How do you withdraw from an IRA that holds precious metals?
First, decide if it is possible to withdraw funds from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities can accept bullion bar, while others require you buy individual coins. You'll have to weigh the pros of each option before you make a decision.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. However, each coin will need to be counted individually. However, you can easily track the value of individual coins by storing them in separate containers.
Some prefer to keep their money in a vault. Others prefer to place them in safe deposit boxes. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
Which precious metal is best to invest in?
This question depends on how risky you are willing to take, and what return you want. While gold is considered a safe investment option, it can also be a risky choice. For example, if your goal is to make quick money, gold may not suit you. You should invest in silver if you have the patience and time.
If you're not looking to make quick money, gold is probably your best choice. If you want to invest in long-term, steady returns, silver is a better choice.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
irs.gov
finance.yahoo.com
How To
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. Because of its intrinsic value, it was also widely traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. The result was a decrease in foreign currency demand, which led to an increase in their price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They decided to return some of the gold they had left to Europe.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The price of gold has risen significantly since then. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
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