Hang Seng Investment Management has unveiled a new gold ETF that gives investors direct exposure to physical bullion while also paving the way for blockchain-based ownership in the future. The fund reflects a growing trend among asset managers to merge traditional commodities with digital technologies, even as regulators continue to weigh approvals.
The Hang Seng Gold ETF started trading on Thursday on the Hong Kong Stock Exchange under the code 3170. It is designed to track the LBMA Gold Price AM, the London morning benchmark widely used in global gold markets. The ETF is passive and fully backed by physical gold bars that meet London Bullion Market Association good delivery standards.
The gold is stored in vaults in Hong Kong, with HSBC serving as custodian. Participating dealers can create and redeem units in cash or, in limited cases, in physical gold. Retail investors buy and sell ETF units on the secondary market just like regular shares. The ETF trades in Hong Kong dollars with a board lot size of 50 units. Investors should expect an ongoing charge of about 0.40% per year and a tracking difference of roughly minus 0.50%. Hang Seng said it does not plan to make dividend payouts, meaning returns will reflect gold price movements only.
Beyond the traditional ETF, Hang Seng is exploring tokenized unlisted units of the fund. These digital units are not yet available and would require regulatory approval. The plan is for ownership to be recorded on blockchain, with HSBC acting as tokenization agent. Under this model, digital tokens would represent whole or fractional ETF units, and transactions would be recorded on a public blockchain. Ethereum is expected to be the first blockchain used, though others may be adopted in the future. Access to these tokenized units would be limited to approved distributors, with no secondary market trading.
The launch comes as gold prices have surged, with spot gold jumping 4% on Thursday to $5,595 an ounce. The rally highlights continued demand for safe-haven assets amid economic and geopolitical uncertainty, making cost efficiency and accurate tracking important for ETF investors.
Hang Seng’s blockchain plans are part of a wider industry push toward tokenization. Last week, the New York Stock Exchange and its parent company, Intercontinental Exchange, announced they are building a platform for trading tokenized stocks and ETFs, aiming for faster settlement and 24/7 trading once approved. A report from Sygnum also highlighted that major financial institutions are increasingly adopting blockchain, predicting that up to 10% of new bond issuances could be tokenized in 2026.
This move positions Hang Seng at the intersection of traditional commodity investing and the emerging blockchain economy, giving investors a glimpse of how gold trading could evolve in the years ahead.