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

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...