J.P. Morgan Commodity ETF Services has filed with the SEC to list on the NYSE Arca an exchange-traded fund based on physical ownership of copper, a NYSE spokesperson has confirmed.
The fund, to be called JPM XF Physical Copper Shares, will invest only in Grade A copper in physical form and will issue shares representing units of fractional interest in and ownership of the copper.
J.P. Morgan Commodity ETF Services LLC is the sponsor of the fund, while J.P. Morgan Treasury Securities Services, a division of JPMorgan Chase Bank, is the administrative agent.
Wilmington Trust Company is the trustee of the fund while the Henry Bath Group is the warehouse-keeper of the copper.
The valuation agent for the copper owned by the fund will be Metal Bulletin Ltd., an independent, third-party valuation agent.
According to the registration statement, the shares are intended to “constitute a simple and cost-effective means of making an investment similar to an investment in copper. Although the Shares are not the exact equivalent of an investment in copper, they provide investors with an alternative that allows a level of participation in the copper market through the securities market.”
The filing is currently being reviewed by the SEC and will be publicly posted later this month for public review and comment.
Tommy Fernandez writes for Money Management Executive.