After a decade long wait, BNY Mellon has received patents on its commodity exchange traded fund structures, according to a report.
The firm received three patents that drive large commodity ETFs, including the popularly regarded SPDR Gold Shares (NYSEArca: GLD), reports Jackie Noblett for Ignites.
BNY Mellon has created grantor trusts to turn physically held gold, silver, platinum and palladium into ETFs that can be traded on an exchange.
“It was the impetus for a much greater use of commodities broadly. Prior to the ETF, it was an institutional investment, and what we did was we transformed it into an easily traded security,” Joseph Keenan, head of global ETF services at BNY Mellon, said in the article.
The company currently acts as the trustee for 10 U.S.-listed physically backed commodity ETFs for iShares, State Street Global Advisors, iShares and ETF Securities.
Other notable patents in the industry include Vanguard’s right to launch ETFs as a share class of its existing mutual funds, non-transparent actively managed ETFs, fundamental indices and ETF payment distributions.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.