Key Takeaways
- • HashKey Exchange has launched Hong Kong's first physical gold ETF with a tokenized unlisted T class (USD ACC) share structure, combining traditional exchange-listed units with blockchain-based digital ownership on Ethereum.
- • The Hang Seng Gold ETF (ticker 3170.HK), which debuted on the Hong Kong Stock Exchange on January 29, 2026, holds LBMA-compliant physical gold bars stored in Hong Kong vaults, with HSBC serving as custodian and tokenization agent.
- • The fund charges a 0.25% annual management fee with a 0.40% total recurring expenditure ratio and tracks the LBMA Morning Gold Price, allowing retail investors to gain exposure to physical gold without direct possession or redemption complexity.
- • Tokenized units on the HashKey platform are unlisted and restricted to subscription/redemption through eligible distributors only, with no secondary market trading permitted, creating a closed distribution model distinct from the exchange-listed share class.
- • The launch capitalizes on gold's historic rally—the metal surged 64% in 2025 and exceeded $5,000 per ounce in 2026—and reflects Hong Kong's strategic pivot to position itself as a digital asset hub through regulatory innovation and institutional-grade blockchain infrastructure.
Summary
Hang Seng Investment Management has achieved a dual-track tokenization milestone by launching Hong Kong's first physical gold ETF with synchronized traditional and blockchain-based share classes. The Hang Seng Gold ETF began trading on the Hong Kong Stock Exchange on January 29, 2026, under ticker 3170.HK, with conventional listed units denominated in Hong Kong dollars. Concurrently, HashKey Exchange—a licensed digital asset platform—now offers tokenized unlisted T class units (USD ACC) issued on the Ethereum blockchain, representing fractional ownership in the same underlying fund. This structure creates parallel access channels for institutional and retail investors with different settlement preferences and regulatory requirements.
The fund operates as a passive vehicle tracking the LBMA Morning Gold Price, holding physical gold bars that meet London Bullion Market Association good delivery standards. HSBC serves dual roles as custodian for the physical bullion and tokenization agent responsible for issuing and managing blockchain-based digital tokens. Physical gold storage is managed by Hong Kong International Airport Precious Metals Storage Limited and Brink's Hong Kong Limited, with Heraeus Metals Hong Kong Limited designated as a gold dealer. The fund structure supports both cash and in-kind creation/redemption mechanisms, though tokenized units available through HashKey are restricted to subscription and redemption through qualified distributors only, with no secondary market trading permitted.
Pricing for the listed class reflects a 0.25% annual management fee with total recurring expenditure of 0.40% per annum and an estimated tracking deviation of minus 0.50%. The board lot size is 50 units on the Hong Kong Stock Exchange. The fund does not plan to distribute dividends, aligning investor returns purely with gold price appreciation. The USD-denominated tokenized units on HashKey provide an alternative access point for investors preferring digital settlement and custody models.
The launch arrives as gold enters a historic price cycle, having surged 64% during 2025 and trading above $5,000 per ounce during 2026 Asian trading sessions. This environment reflects sustained central bank purchases, geopolitical uncertainty, and record global ETF inflows into precious metals. The timing also advances Hong Kong's regulatory agenda to attract digital asset infrastructure; the dual listing underscores how traditional asset managers and licensed digital platforms are converging to serve institutional capital seeking both physical commodity exposure and blockchain-native settlement options.
The fund operates as a passive vehicle tracking the LBMA Morning Gold Price, holding physical gold bars that meet London Bullion Market Association good delivery standards. HSBC serves dual roles as custodian for the physical bullion and tokenization agent responsible for issuing and managing blockchain-based digital tokens. Physical gold storage is managed by Hong Kong International Airport Precious Metals Storage Limited and Brink's Hong Kong Limited, with Heraeus Metals Hong Kong Limited designated as a gold dealer. The fund structure supports both cash and in-kind creation/redemption mechanisms, though tokenized units available through HashKey are restricted to subscription and redemption through qualified distributors only, with no secondary market trading permitted.
Pricing for the listed class reflects a 0.25% annual management fee with total recurring expenditure of 0.40% per annum and an estimated tracking deviation of minus 0.50%. The board lot size is 50 units on the Hong Kong Stock Exchange. The fund does not plan to distribute dividends, aligning investor returns purely with gold price appreciation. The USD-denominated tokenized units on HashKey provide an alternative access point for investors preferring digital settlement and custody models.
The launch arrives as gold enters a historic price cycle, having surged 64% during 2025 and trading above $5,000 per ounce during 2026 Asian trading sessions. This environment reflects sustained central bank purchases, geopolitical uncertainty, and record global ETF inflows into precious metals. The timing also advances Hong Kong's regulatory agenda to attract digital asset infrastructure; the dual listing underscores how traditional asset managers and licensed digital platforms are converging to serve institutional capital seeking both physical commodity exposure and blockchain-native settlement options.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.