JPMorgan Copper ETF Plan Opposed by Michigan Senator Levin
JPMorgan Chase & Co. (JPM)’s plan for an exchange-traded fund linked to copper will disrupt supplies to the market and drive up prices to “create a bubble and burst cycle” in the metal, Senator Carl Levin told regulators.
Funds backed by copper would stockpile the metal and leave less available for industrial users, including manufacturers and builders, Levin said in a letter dated yesterday to the U.S. Securities and Exchange Commission. Levin, a Michigan Democrat and chairman of the Permanent Subcommittee on Investigations, said a proposed rule change to list and trade the firm’s JPM XF Physical Copper Trust should be denied.
ETFs trade like stocks, giving investors access to commodities such as copper without taking physical delivery. NYSE Arca Inc., the electronic platform of NYSE Euronext, filed with the SEC to list and trade JPM XF Physical Copper Trust, according to an April 2 document.
JPMorgan, BlackRock Inc. (BLK) and ETF Securities Ltd. have said they planned to start exchange-traded funds for industrial metals. ETF Securities started the first exchange-traded products backed by copper, nickel and tin in London in December 2010.
To contact the reporters on this story: Joe Richter in New York at jrichter1@bloomberg.net; Silla Brush in Washington at sbrush@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
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