Industry Updates

Royal Mint gold ETC performs first physical delivery

RMAU is the only ETC offering physical delivery of Royal Mint gold

Theo Andrew

a pile of coins

HANetf and the Royal Mint’s gold exchange-traded commodity (ETC) has performed its first physical redemption as investing platform Wahed converted some of its shares into a one-ounce gold bar.

The delivery marks the first field test of the physical redemption feature since the $805m Royal Mint Responsibly Sourced Gold ETC (RMAU) launched in 2020.

RMAU is the only ETC offering physical delivery from the Royal Mint and can deliver in small sizes from coins, Britannias, Sovereigns to bars.

The Royal Mint previously had a physical delivery agreement with WisdomTree on the $3.3bn Gold Bullion Securities (GBS), Europe’s first gold ETC, which stood for eight years until February 2021.

Commenting on the physical delivery, Umer Suleman, head of risk at Wahed, said: “We are excited to announce our partnership with HANetf, providing our customers access to reassurance through RMAU that they can own physical gold.”

This week’s announcement follows news last June that RMAU would be renamed after becoming the first ETC to be backed by recycled gold from engraving processes.

The ETC also received $170m in seed funding from Quintet Private Bank to extract gold from used smartphones and laptops.

Last March, the product halted sourcing Russian gold and retroactively swapped out the 60 existing Russian bars underlying investor assets.

Hector McNeil, co-CEO and co-founder of HANetf, said: “Partnering with the Royal Mint has ensured that the gold in the ETC is not only secure but responsibly sourced and partially backed by recycled gold.”

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