Hong Kong Hang Seng Gold ETF is listed! The first to allow for the exchange of physical gold, issuing tokenized fund units.

Hang Seng Gold ETF is listed in Hong Kong, pioneering bank exchange for physical gold, and planning for tokenized categories, connecting traditional and digital finance, advancing Hong Kong as a gold hub.

Hong Kong’s largest ETF manager — Hang Seng Investment Management Limited — launched the “Hang Seng Gold ETF” (stock code: 3170) today (29) on the Hong Kong Stock Exchange, becoming the first ETF in Hong Kong that can be exchanged for physical gold at banks. Hang Seng Investment stated that in the future, they will consider adding tokenized non-listed fund units for this ETF, which may become Hong Kong’s first non-money market tokenized ETF.

The “Hang Seng Gold ETF” opened today at HKD 18.4 and closed at HKD 17.44, a 9% increase from the issuance price of HKD 16 per unit.

It is introduced that the “Hang Seng Gold ETF” closely tracks the performance of the London Bullion Market Association (LBMA) morning gold price (before fees and expenses), and provides investors with the option to redeem physical gold at Hang Seng Bank. The physical gold trading process, gold storage, and physical redemption are all conducted in Hong Kong.

The issuance price of the “Hang Seng Gold ETF” is HKD 16 per unit, with a trading lot of 50 units, meaning an investment of about HKD 800 per lot; the management fee is 0.25% annually.

According to the product prospectus, the “Hang Seng Gold ETF” will add a tokenized category in the future, with HSBC acting as the “Tokenization Agent.” These tokenized shares will initially be issued on Ethereum, with the possibility of adopting other public blockchains in the future.

However, tokenized fund units do not have a secondary market for trading; investors must subscribe or redeem through qualified distributors.

Hong Kong Financial Secretary Paul Chan Mo-po delivered a speech at the listing ceremony, congratulating the successful listing of the “Hang Seng Gold ETF,” and stated:

“The listing of the ‘Hang Seng Gold ETF’ fully supports the vision of developing Hong Kong into an international gold trading hub, and helps promote growth and innovation in Hong Kong’s gold market. The ETF’s exploration of distribution through licensed digital asset trading platforms will help connect traditional and digital finance, uncovering new opportunities.”

• This article is reprinted with permission from: 《BlockBeats》
• Original title: “‘Hang Seng Gold ETF’ Officially Listed! Can Exchange for Physical Gold and Will Issue Tokenized Fund Units”
• Original author: Block Sister MEL