A Securities and Exchange Commission division’s analysis of exchange traded products that hold physical metals found the products don’t have an impact on the commodities’ prices.
A study conducted by the SEC’s Staff of the Division of Risk, Strategy, and Financial Innovation “found no clear evidence of statistical causality between the historical flow of assets to physical metals ETPs and underlying commodity prices of those metals,” according to a filing.
The SEC was examining the potential effects of physical copper ETFs proposed by JP Morgan (NYSE: JPM) and BlackRock’s (NYSE: BLK) iShares.
The study examined existing ETFs backed by gold, silver, platinum, and palladium.