In a significant development for the financial and cryptocurrency sectors, Hong Kong”s Hang Seng Investment has unveiled its gold-backed exchange-traded fund (ETF), the “Hang Seng Gold ETF.” This fund debuted on January 29 on the Hong Kong Stock Exchange, trading under the ticker “03170.” Notably, the ETF comprises both traditional shares and a tokenized share class issued on the Ethereum blockchain.
The Hang Seng Gold ETF aims to track the LBMA Gold Price AM and is backed by physical bullion stored in secure vaults located in Hong Kong. As per product disclosures, the ETF has recorded a substantial 9% increase shortly after its launch, indicating a favorable market reception. The fund”s innovative approach merges conventional commodity investment strategies with blockchain technology, highlighting a growing trend of tokenization in traditional finance.
While the ETF is based on the Ethereum blockchain, it is essential to note that distributors are restricted from marketing these tokenized shares in secondary markets. Interested investors must engage with qualified distributors for subscription or redemption, ensuring a controlled approach to this new investment vehicle. Currently, the tokenized units are not yet available for subscription, pending necessary regulatory approvals.
HSBC has been appointed as the tokenization agent for this product, reinforcing the bank”s role in facilitating innovative financial solutions. This initiative occurs amidst Hong Kong”s ongoing efforts to establish itself as a leading hub for cryptocurrency and digital asset firms, as regulatory frameworks evolve to accommodate these emerging sectors.
In December 2025, the Hong Kong Insurance Authority expressed its intent to permit insurance companies to allocate capital towards digital assets, including cryptocurrencies. This move is part of broader regulatory developments aimed at integrating traditional finance with digital asset investment. However, recent proposals from the Hong Kong Securities and Futures Professionals Association have raised concerns regarding the requirement for traditional asset managers to obtain full virtual asset licenses, even for minimal cryptocurrency investments.
As the landscape of investment continues to shift, the introduction of the Hang Seng Gold ETF represents a pivotal moment in the convergence of traditional finance and blockchain technology, showcasing the potential for tokenization to redefine investment strategies in the future.
