[gametorch]

> What incentive does Bhutan have to cater to foreign investor interests?

Bhutan is actively encouraging foreign investment for obvious reasons. For example, see Gelephu Mindfulness City [1]. The King and his government have published their reasoning.

> Who/what determines the token values? Is it based on market demand for tokens or the market price of gold? If the price of gold increases 50%, are token values guaranteed to follow suit?

Yes. Presumably there is a redemption mechanism, providing arbitrageurs opportunities to close price discrepancies between the token and spot gold for a profit.

> I'm trying to understand the advantage here over ETFs

The vast majority of Earth's population doesn't have access to US-based ETFs. Second, if a significant amount of your assets are already on chain, it's painful to move them back to a fiat-based brokerage account to buy a gold ETF; you risk the whims of an arbitrary bureaucracy, frozen assets and delays over which you have no control.

1. https://en.wikipedia.org/wiki/Gelephu_Mindfulness_City

[jqpabc123]

you risk the whims of an arbitrary bureaucracy, frozen assets and delays over which you have no control.

So risk without any real reward --- at least compared to gold ETFs in the USA.

[gametorch]

I was talking about gold ETFs.

The blockchain in this context has no bureaucracy, no ability to freeze your assets, and no delays.

Fiat brokerage and banking accounts suffer all those properties.