Copper ETF Approved Over Hedge Fund's Objections

Dec 18 2012 | 10:37am ET

Commodities hedge fund RK Capital Management has lost its bid to stop a copper exchange-traded fund that it warned could "wreak havoc on the U.S. and global economy."

The Securities and Exchange Commission last week approved a rule change at NYSE Arca that will allow the launch of a physical copper ETF. That fund will be launched by JPMorgan Chase, but is expected to be followed by two others, from BlackRock and ETF Securities.

RK, which runs the Red Kite hedge funds, has been fighting against the ETF for much of the year, joined in its opposition by several major copper users. They, and Sen. Carl Levin (D-Mich.), warned that the copper ETFs would inflate prices and harm supply.

The SEC rejected those arguments, finding in a review last month that the ETFs were not likely to have a major impact on copper prices.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of