Hong Kong Launches First Gold ETF With Tokenized Units on Ethereum
The Hang Seng Gold ETF (3170.HK) officially debuted on the Hong Kong Stock Exchange on January 29, 2026, marking a first for the local market.
The fund is the first gold ETF in Hong Kong to include a tokenized class of units issued on the Ethereum blockchain, blending traditional exchange-traded exposure with blockchain-based fund infrastructure.
Managed by Hang Seng Investment Management, the ETF tracks the LBMA Gold Price AM and is fully backed by physical gold bullion stored in secure vaults in Hong Kong.
Strong Market Debut and Dual Structure
The ETF opened at HK$17.39 and gained roughly 9% during its first trading session, reaching levels near HK$17.48, reflecting strong initial demand. Structurally, the fund operates with two parallel formats: conventional ETF shares listed and traded on the stock exchange, and a separate class of tokenized, non-listed fund units.
The tokenized units are issued on Ethereum, with HSBC acting as the tokenization agent. While Ethereum is the initial deployment layer, the framework allows for potential expansion to other public blockchains in the future.
Physical Gold Redemption and Infrastructure
A notable distinction of the Hang Seng Gold ETF is its support for physical gold redemption, making it the first ETF in Hong Kong to offer this feature. All bullion backing the fund is stored locally, with custody provided through HSBC subsidiaries and physical storage handled by Brink’s Hong Kong and the Hong Kong International Airport Precious Metals Storage facilities.
Although the tokenized units enable minting and burning via approved distributors, they are not yet available for secondary market trading. This design keeps the fund compliant with existing regulatory structures while laying groundwork for future onchain liquidity.
Strategic Context for Hong Kong’s Digital Asset Ambitions
The launch aligns with Hong Kong’s broader strategy to merge Traditional Finance (TradFi) with blockchain technology, positioning the city as a regulated hub for digital asset innovation. By introducing tokenization within a conventional ETF wrapper, regulators and asset managers are testing how blockchain infrastructure can coexist with established market safeguards.
Rather than replacing traditional markets, the model demonstrates how blockchain can function as a back-end settlement and issuance layer, improving transparency and operational efficiency without altering the investor-facing experience.
Key Fund Details
- Ticker: 3170.HK
- Benchmark: LBMA Gold Price AM
- Management Fee: 0.25% per annum
- Trading Lot Size: 50 units
- Custodian: HSBC subsidiary
- Gold Storage: Brink’s Hong Kong and Hong Kong International Airport Precious Metals Storage
Bottom Line
The Hang Seng Gold ETF’s tokenized unit structure represents a measured but significant step in Hong Kong’s financial evolution. By combining physical gold custody, exchange trading, and blockchain-based issuance, the fund illustrates how tokenization is moving beyond experimentation and into regulated capital markets, without disrupting the foundations of traditional finance.
The post Hong Kong Launches First Gold ETF With Tokenized Units on Ethereum appeared first on ETHNews.
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