Hong Kong Virtual Asset Consortium Updates Crypto Indexes, Excludes XRP in Favor of SOL

Introduction

The Hong Kong Virtual Asset Consortium (HKVAC) has made revisions to its crypto indexes, reflecting the city's commitment to strengthening its crypto regulatory framework and embracing ETFs. The updates highlight a preference for tokens with market performance and growing industry partnerships. Notably, the revisions exclude Ripple's XRP from the indexes.

HKVAC's Crypto Index Revisions

In a recent statement, HKVAC, a non-profit organization that rates digital asset trading platforms and compiles crypto market indexes, announced revisions to its top five, top 10, and overall crypto indexes. These changes reflect the evolving landscape of the crypto market and the need to adjust the indexes accordingly.

SOL Replaces XRP in Top Five Global Crypto Index

December 2023 witnessed a significant shift in the crypto market, with Solana (SOL) surpassing XRP in terms of market capitalization, securing its position as the fourth-largest cryptocurrency. This development played a crucial role in HKVAC's decision to replace XRP with SOL in its top five global crypto index. The move recognizes SOL's growing market performance and its potential for further growth.

Avalanche Token Enters the Top 10 Index

Another notable change in HKVAC's indexes is the inclusion of the Avalanche (AVAX) token in the top 10 index. AVAX's value experienced a surge despite a general downturn in the crypto market at the end of 2023. This addition reflects the growing recognition of AVAX's potential and its partnerships with traditional finance businesses like JPMorgan and Deloitte. These partnerships aim to drive asset tokenization initiatives and further strengthen the crypto industry.

New Cryptocurrencies Included in Global Large Crypto Index

HKVAC's January statement also highlights the inclusion of new cryptocurrencies in its global large crypto index. Internet Computer's ICP, Optimism (OP), Injective (INJ), and Immutable (IMX) have been added to the index. This update reflects the organization's commitment to staying up-to-date with the latest developments in the crypto industry and ensuring comprehensive coverage in its indexes.

Hong Kong's Crypto Regulatory Framework and ETFs

Hong Kong's financial regulator, the Securities and Futures Commission (SFC), has expressed its readiness to welcome spot crypto exchange-traded funds (ETFs) in December 2023. This announcement follows the approval of 11 spot Bitcoin ETF applications by the United States Securities and Exchange Commission. The SFC acknowledges the increased demand for these products in Hong Kong and has introduced appropriate investor protection safeguards for the offering of certain virtual asset products to the Hong Kong public.

Conclusion

The recent revisions to HKVAC's crypto indexes reflect the dynamic nature of the crypto market and the evolving regulatory landscape in Hong Kong. With the exclusion of XRP and the inclusion of tokens like SOL and AVAX, the indexes aim to provide a comprehensive representation of the market, prioritizing tokens with strong market performance and industry partnerships. Hong Kong's commitment to embracing ETFs further strengthens its position in the crypto industry. Share your thoughts and opinions on the exclusion of XRP and the inclusion of SOL in the comments section below.

Frequently Asked Questions

How much money should I put into my Roth IRA?

Roth IRAs allow you to deposit your money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, you can't touch your principal (the initial amount that was deposited). This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. You must pay taxes on the difference if you want to take out more than what you initially contributed.

The second rule is that your earnings cannot be withheld without income tax. Also, taxes will be due on any earnings you take. Let's assume that you contribute $5,000 each year to your Roth IRA. In addition, let's assume you earn $10,000 per year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. The remaining $6,500 is yours. You can only take out what you originally contributed.

So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,

Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. A traditional IRA can be withdrawn up to the maximum amount allowed.

Roth IRAs do not allow you to deduct your contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.

What is the cost of gold IRA fees

$6 per month is the Individual Retirement Account Fee (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.

If you want to diversify, you may be required to pay extra fees. These fees vary depending on what type of IRA you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.

Most providers also charge an annual management fee. These fees can range from 0% up to 1%. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.

What is the tax on gold in an IRA

The fair market value of gold sold is the basis for tax. You don't pay taxes when you buy gold. It's not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.

For loans, gold can be used to collateral. Lenders seek to get the best return when you borrow against your assets. For gold, this means selling it. This is not always possible. They may hold on to it. They might decide to sell it. In either case, you risk losing potential profits.

You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.

What is the benefit of a gold IRA?

The benefits of a gold IRA are many. You can diversify your portfolio with this investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.

You can also rollover funds from other retirement accounts to a gold IRA. This will allow you to transition easily if it is your decision to retire early.

The best thing is that investing in gold IRAs doesn't require any special skills. They're available at most banks and brokerage firms. Withdrawals can be made instantly without the need to pay fees or penalties.

But there are downsides. The volatility of gold has been a hallmark of its history. It is important to understand why you are investing in gold. Are you seeking safety or growth? Are you trying to find safety or growth? Only by knowing the answer, you will be able to make an informed choice.

You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce won't be enough to meet all your needs. You could need several ounces depending on what you plan to do with your gold.

You don't have to buy a lot of gold if your goal is to sell it. You can even get by with less than one ounce. These funds won't allow you to purchase anything else.

Statistics

You can only purchase gold bars at least 99.5% purity. (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)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)

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How To

Investing gold vs. stocks

Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because most people believe that it is no longer economically profitable to invest gold. This belief stems from the fact that most people see gold prices being driven down by the global economy. People believe that investing in gold would result in them losing money. However, investing in gold can still provide significant benefits. Here are some examples.

Gold is one of the oldest forms of currency known to man. There are records of its use going back thousands of years. It was used by many people around the globe as a currency store. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.

You must first decide how much you are willing and able to pay per gram to decide whether or not gold should be your investment. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.

It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So, although gold prices have declined in recent years, the cost of producing it has not changed.

It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. This is not a wise decision if you're looking to invest in long-term assets. It is possible to make a profit by selling your gold at higher prices than when you purchased it.

We hope this article has given you an improved understanding of gold investment tools. We strongly recommend that you research all available options before making any decisions. Only then can you make informed decisions.

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By: David Sencil
Title: Hong Kong Virtual Asset Consortium Updates Crypto Indexes, Excludes XRP in Favor of SOL
Sourced From: news.bitcoin.com/ripples-xrp-ousted-from-hong-kong-virtual-asset-consortiums-top-crypto-index/
Published Date: Tue, 16 Jan 2024 05:30:29 +0000