Hang Seng launches gold ETF with tokenised units

Hang Seng Investment has launched a physically backed gold exchange-traded fund in Hong Kong that includes a tokenised share class issued on the Ethereum blockchain.

The Hang Seng Gold ETF debuted on Thursday on the Hong Kong Stock Exchange under ticker 03170 and was up about 9% during early Asia trading hours.

The fund tracks the LBMA Gold Price AM and holds physical bullion stored in designated vaults in Hong Kong, according to its prospectus.

Alongside its conventional ETF structure, the product introduces a tokenised class of units that are initially issued on Ethereum and may later expand to other public blockchains

Banking group HSBC is acting as the tokenisation agent for the ETF, supporting the blockchain-based issuance of the units.

Despite being issued on a public blockchain, the tokenised units cannot be freely traded on secondary markets and must be subscribed to or redeemed through qualified distributors.

Hang Seng said the tokenised units are not yet open for subscription and will only be released once the necessary regulatory approvals are secured.

At the time of reporting, Ethereum price was $2,952.73.