New Hang Seng Gold ETF Launches on HKEX With Ethereum-Based Shares

Hong Kong gold ETF pairs physical custody with blockchain-issued units under strict distribution and approval controls.

Hong Kong’s exchange-traded fund market added a new product that links physical gold with blockchain-based fund units. Hang Seng Investment introduced a gold ETF on the Hong Kong Stock Exchange, paired with a tokenized share class issued on a public blockchain. Market watchers see the product as another step toward connecting traditional assets with digital infrastructure.

Hang Seng Tests Tokenized Fund Units Under Hong Kong’s ETF Framework

Hang Seng Investment has listed the Hang Seng Gold ETF on the Hong Kong Stock Exchange under ticker 03170. Market data showed the fund rising about 9.6% shortly after its debut. 

Image Source: HKEX

Interestingly, the asset’s performance closely tracks the LBMA Gold Price AM. Disclosures confirm that physical gold bars underpin the ETF and are stored in designated Hong Kong vaults.

According to the filing, the fund follows a physically backed structure with exposure to a single global commodity. HS GOLD ETF is denominated in US dollars and is domiciled in Hong Kong. Total ongoing charges are set at 0.4%, including a 0.25% annual management fee. 

Beyond the standard ETF format, Hang Seng Investment has introduced a tokenized class of fund units. These units are issued on the Ethereum blockchain, adding a digital layer to the fund’s structure.

Meanwhile, HSBC has been appointed as the tokenization agent. The prospectus documents note Ethereum as the initial network, with other public blockchains added if they meet equivalent security and resilience standards.

Blockchain Ledgers Join Vault-Based Custody in Regulated ETFs

Blockchain-issued units remain unavailable to the wider market. Approved distributors of the assets handle creation and redemption, with no resale options. Moreover, product documents confirm that regulators must grant clearance before issuance begins, and no timeline has been set.

Alongside the gold ETF, Hang Seng Investment introduced additional money market ETFs. Offerings include Taikang Hong Kong USD Money Market ETF, listed under tickers 3176 and 9176, and a Hong Kong dollar version under ticker 3457. These funds focus on short-term cash management instruments.

The combined launches signal ongoing experimentation within Hong Kong’s regulated markets. Traditional commodities, fund tokenization, and established custodians now share a single framework, pointing toward gradual changes in how fund units may be issued and recorded in the future.

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