Mirae Asset Global Investments (Hong Kong), Citi Investor Services and OSL Group have launched a tokenized unit class for the Global X HSCEI Covered Call Active ETF, giving Hong Kong’s covered-call ETF market its first fund class represented by blockchain-recorded digital tokens.
The tokenized units for the Global X HSCEI Covered Call Active ETF, which trades under ticker 3416, became effective on Aug. 27 and opened for subscription the same day, according to Mirae Asset. Each token represents one tokenized unit in the fund, linking the digital record to a conventional ETF unit rather than creating a separate cryptocurrency-linked product.
The launch places a Hong Kong-listed income ETF inside the city’s regulated virtual-asset framework. Citi will act as trustee, custodian, fund administrator and ETF service provider, while also handling transfer agency duties for the new tokenized class. OSL Group, which is listed in Hong Kong under stock code 863, will support access through its Securities and Futures Commission-licensed virtual asset trading platform for institutional and retail participants.
A tokenized class for an existing Hong Kong ETF
The ETF itself was listed in February 2024 and was marketed by Mirae Asset as the world’s first covered-call ETF referencing the Hang Seng China Enterprises Index, or HSCEI. It was among the first group of covered-call ETFs introduced in Hong Kong.
Covered-call strategies generally hold a portfolio of shares or an equity-linked exposure while selling call options against it. The option premiums can support distributions, though the approach can limit gains when the underlying market rises sharply. In this case, the fund uses the HSCEI, an index of major Chinese companies listed in Hong Kong, as its reference point.
The tokenized unit class will be offered in Hong Kong dollars and U.S. dollars. Mirae Asset describes the ETF as income-focused and targeting monthly distributions. Its fund documents also state that distributions are not guaranteed and may be paid from capital, a structure that can reduce the fund’s net asset value over time.
That distinction is particularly relevant for buyers drawn to the product’s distribution schedule. A monthly payment does not necessarily represent investment income or a positive fund return, and covered-call funds can face trade-offs between cash distributions, market participation and capital preservation.
Citi and OSL divide the fund and platform roles
The arrangement divides responsibilities between established fund-service infrastructure and a licensed virtual-asset platform. Citi’s roles cover the underlying administration and custody framework typically associated with ETFs, while OSL provides the trading-platform connection for the tokenized class.
Mirae Asset said OSL’s platform support is intended to serve both professional and retail market participants in Hong Kong. The announcement does not describe the tokenized units as freely transferable across public blockchain wallets or decentralized finance protocols. Instead, access is framed around OSL’s licensed platform, which suggests that the early model will be centered on controlled, regulated distribution rather than unrestricted on-chain circulation.
That structure could make tokenization more practical for an existing regulated fund without requiring the manager to redesign the ETF’s investment strategy or legal framework. The token represents a unit in the fund, while traditional service providers continue to perform custody, administration and transfer-agency functions.
For Hong Kong’s digital-asset market, the product extends tokenization beyond products designed primarily around cryptocurrencies. The underlying exposure remains tied to Hong Kong-listed Chinese equities and an options-based income strategy, bringing a familiar listed-fund format into a blockchain-recorded ownership model.
Fund platform is among the industry’s largest
Mirae Asset Financial Group reported more than US$439 billion in assets under management as of June 30, 2026. The group said it operates through 25 offices globally and employs more than 1,000 professionals, including more than 265 investment specialists.
Its global ETF platform includes more than 768 ETFs with roughly US$275 billion in ETF assets, according to the firm. Those products are listed in markets including Hong Kong, the United States, Europe, Japan, South Korea, Australia, Canada, Brazil, Colombia, India and Vietnam.
Global X ETFs, the brand behind the 3416 fund, reported 499 ETF strategies and more than US$169.6 billion in assets under management as of June 30. The scale gives the tokenized launch a different profile from smaller blockchain-native fund experiments: it applies tokenization to an already established international ETF platform and a product that has traded in Hong Kong since 2024.
Distribution policy remains central to buyer decisions
The tokenized class does not change the fundamental investment risks of the ETF. Returns will remain influenced by the performance of the HSCEI, the fund manager’s active covered-call implementation, option-market conditions, fees and the fund’s distribution policy.
A covered-call approach can generate option income during range-bound or moderately rising markets, but it may lag a direct equity holding during a strong rally because sold call options can cap some upside. Conversely, option premiums may offer only partial protection during a market decline.
Potential buyers also need to distinguish the blockchain format from the portfolio strategy. Tokenization changes how ownership of a fund unit is recorded and accessed through the participating platform; it does not turn the ETF into a high-yield digital asset or remove the market risks attached to Chinese equities and options.
Mirae Asset directs prospective participants to the fund’s prospectus and product key facts statement on the Global X Hong Kong website for the detailed terms, investment objective, fees and risks.
Explore how tokenized ETFs fit into broader TradFi trends in our guide to tokenized equities today.
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