INTERVIEW-UPDATE 1-ETF Sec eyes $1bln assets in Japan by end-'10

* ETF Securities launches 5 ETFs on TSE, its first in Japan

* In talks to list in Singapore, Hong Kong, also eyes China

* Gold's psychological barrier of $1,000 could be topped fast (Adds details)

TOKYO, Aug 24 - ETF Securities Ltd, an operator of commodity exchange-traded funds (ETFs), said it aims to have $1 billion in assets under management in Japan by the end of 2010 as it makes its debut on the Tokyo Stock Exchange on Monday.

The London-based company launches five new ETFs on the Tokyo bourse on Monday -- Physical Gold, Physical Silver, Physical Platinum, Physical Palladium and a Physical PM Basket ETF.

"I would say within 18 months by the end of next year, I would hope for $1 billion equivalent (for all items in Japan)," Hector McNeil, ETF Securities' global head of sales and marketing, told Reuters, saying that this was a conservative target.

"ETF Securities will be aggressive about launching more ETF products in Japan by the end of 2010," he said, adding that Japanese investors could be offered 50 commodities-related ETFs, including industrial metals and energy, as well as equities ETF products.

ETF Securities is also considering offering localised contracts in Japan, such as rubber and rice, although much will depend on liquidity, he said.

The company is planning to expand its foothold in Asia, eyeing listing its funds in Singapore, then Hong Kong within the next 18 months, McNeil said.

McNeil said the firm has already held talks with bourses in Hong Kong and Singapore, adding that it was also looking to China, as well South Korea, Indonesia and Taiwan.

Besides Japan, the company already has funds listed in Australia.

ETF Securities, which offered the world's first listing of exchange-traded commodities (ETCs) in 2003, issues securities backed by physical stocks of commodities such as precious metals, giving investors exposure to movements in the asset price without having to buy and store the commodity themselves.

In late July, ETF Securities launched a U.S. silver trust on the New York Stock Exchange.

"Certainly, we would want to become the leading provider of ETFs in the Asian region. That's our ultimate aim and objective," McNeil said.

"The great thing about Asia is that nobody has really established dominance and footprint ..., so we feel it's actually the place where the opportunity is," he said.

ETF Securities has a business model that should see little impact from U.S. moves to tighten regulations on positions in U.S. futures markets, McNeil said.

Exchange-traded funds have become a top target in U.S. regulators' efforts to rein in excessive speculation in oil and other commodity markets, the Wall Street Journal reported on Saturday.

"Obviously CFTC is particularly focused on futures and not on physical assets ... So we feel quite confident that our products are robust from all aspects, McNeil said.

"And in fact we have several products (registered) in the U.S. currently and we've been given no indication that they will be affected," he said.

"Clearly we'll keep an eye on that," McNeil said of the development. "I think they realise that if they push too hard investors will look elsewhere. I think the last thing they want to do is to drive investment offshore."

On market outlook, McNeil said gold prices would stay around current levels in the short term. Spot gold traded around $950 per ounce on Monday, keeping in a broad range between $920-$970 since rising near $990 in early June.

"Gold is now driven by the dollar, but the price could jump in the long term on possible supply shortage, as well as concerns over inflation," he said. "I think $3,000 is probably the best or the worst case... I don't know ... But the psychological barrier of $1,000 could be breached very very quickly."