The Tokyo Stock Exchange (TSE) has plans to cross-list a gold exchange-traded fund (ETF) next spring, and may cross-list the streetTRACKS Gold ETF (AMEX: GLD), according to an article in the Nikkei financial publication.

The TSE expects the gold ETF to be just one in a range of commodity-related products it will eventually list as part of a move to diversify its operations. The Osaka Securities Exchange recently launched its own gold-based ETF, but the fund simply tracks a gold price index rather than owning actual bullion, as GLD does. The OSE fund is managed by Nomura Asset Management. Japanese regulations do not currently permit ETFs to own physical gold, but those laws are set to change in the near future.

GLD, which started trading in November 2004 on the New York Stock Exchange, is probably the best-known and largest gold ETF in the world. Its shares are backed by more than 515 tonnes of gold bullion, worth roughly $11 billion, the fund's sole assets. It has an expense ratio of 0.40%. The TSE deal would not be the first time the fund was cross-listed -- GLD already trades on the Singapore stock exchange.

The TSE has been vocal lately about expanding its listings beyond stocks, and recently said that it was looking to list foreign ETFs. The TSE signed an alliance agreement with NYSE Euronext in January and a related technology consulting agreement was announced August 28. Although there are numerous gold ETFs trading worldwide, the alliance makes it all the more likely that the TSE's anticipated gold ETF will be the NYSE-listed GLD.

Gold has always been a popular hedge against stock market instability, although in recent weeks it and other commodities have suffered as hedge funds affected by the subprime meltdown sold off some of the assets they held that still had value. It seems to be stabilizing again, but with the subprime mortgage market's aftershocks still hitting markets of all stripes, gold's future is a rather emphatic question mark. Nonetheless, the TSE would not be taking many risks in bringing GLD to Japan: It already carries the gravitas of being the largest gold ETF in the world and it seems unlikely that the millennia-old human desire for the shiny yellow metal will dry up any time soon.