Copper ETF Battle Fizzles Along With Taste For Commodities

Nov 4 2013 | 11:09am ET

The collapse of investor appetite for commodities has ended the threat of a pair of proposed exchange-traded funds bitterly opposed by hedge fund RK Capital Management.

The proposed physical-copper ETFs, planned by BlackRock and JPMorgan Chase, were approved late last year by the Securities and Exchange Commission, over the objections of RK, which runs the Red Kite hedge funds, and several major industrial copper users. The SEC's move sparked a lawsuit by one of those allies, copper-wire maker Southwire Co.

But Southwire last week dropped that complaint, because it had in effect already won. The company said that the launch of the two ETFs had become unlikely, rendering its legal challenge moot.

Red Kite had warned that the copper ETFs would "wreak havoc on the U.S. and global economy" by removing copper from the market.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.