A copper exchange traded fund proposed by JP Morgan (NYSE: JPM) that met opposition from consumers and producers has been approved by the Securities and Exchange Commission, according to reports Monday.
The SEC had pushed back the deadline ruling on JPMorgan’s planned copper ETF to Dec. 14, citing more time needed to go over the consequences of a physically-backed copper fund on metal flow and prices. [SEC Holds Off on Physically Backed Copper ETFs]
“The SEC said that it did not see the products disrupting the supply of copper available for immediate delivery,” the Financial Times reports. A rival copper ETF filed by BlackRock’s iShares is now likely to go ahead as well, the newspaper said.
U.S. copper fabricators were against the physically-backed ETFs and said the products would disrupt supply and inflate prices. Opponents of the funds also feared that there would not be enough metal available for immediate delivery to prevent a short-term squeeze.
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