jp morgan to introduce a physical copper etf

From Bloomberg:

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JPMorgan Wins Approval for First U.S. Physical Copper ETF

JPMorgan Chase & Co. (JPM) won regulatory approval for the first U.S. exchange-traded fund backed by physical copper, which some industrial users said may disrupt the market.

The proposed rule change by NYSE Arca Inc. to list JPM XF Physical Copper Trust was approved, the regulator said in an order on its website dated Dec. 14. BlackRock Inc. (BLK) and ETF Securities Ltd. also have said they plan to start physically backed ETFs for industrial metals in the U.S.

A group of industrial copper consumers including AmRod Corp., Southwire Co. and Encore Wire Corp. (WIRE) and hedge fund RK Capital LLP opposed the plan, saying funds backed by copper would leave less of the metal available for manufacturers, creating shortages and driving up prices. Senator Carl Levin, a Michigan Democrat who in July had advised rejecting the ETF, said in a statement today that the approval is “a blow to American businesses and consumers that rely on copper,” and that Congress should review the move.

A study released last month by an SEC division concluded that asset flows from exchange-traded products tied to metals don’t have a significant impact on the price of the commodity. Those findings were disputed by the copper-users group.

Patrick Burton, a London-based spokesman for JPMorgan, declined to comment on when the firm plans to introduce the fund.

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Interesting to see whether this ETF will have the same impact on the Copper spot price as the GOLD equivilent does.
Having another physical copper buyer in the market must be a good thing for the spot price, even though there is no date yet for this ETF to start trading.

Mama Huhu