JPMorgan Chase set up the first copper ETF in the

2022-08-26
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JPMorgan Chase established the first copper ETF in the United States. Over the years, JPMorgan Chase has carefully laid out its layout along the upstream, middle and downstream industrial chain of the copper industry. U.S. regulators recently finally approved JPMorgan Chase to set up the first copper Exchange listed fund (ETF) supported by spot copper in the United States. At that time, U.S. investors will be able to easily trade spot copper

over the years, JPMorgan Chase has carefully laid out its layout along the upstream, middle and downstream industrial chain of the copper industry. U.S. regulators recently finally approved JPMorgan Chase to set up the first copper Exchange listed fund (ETF) supported by spot copper in the United States. At that time, U.S. investors will be able to easily trade spot copper

on December 17, local time in the United States, despite the opposition of the US Senate investigation committee, which believed that the establishment of a copper ETF would lead speculators to squeeze market prices, the US Securities and Exchange Commission (SEC) still approved JPMorgan Chase's spot copper trading fund, which has been brewing for two years

Carl Levin, chairman of the investigation committee under the U.S. Senate, believes that the approval of spot copper ETF by the U.S. Securities and Exchange Commission is a blow to U.S. enterprises and consumers, which will push up copper prices and price fluctuations, and affect the market to produce prices that respond to the supply and demand of copper users

in response, the securities and Exchange Commission of the United States stated that it had not found such ETF products disturbing the copper supply for spot delivery, and the Commission had agreed that JPMorgan Chase's spot copper ETF would be traded on the NYSE Arca

according to the regulatory documents submitted by JPMorgan Chase, this new ETF may hold 61800 tons of spot copper, equivalent to 27% of the total global spot copper storage on the London Metal Exchange

it is understood that spot copper ETF is similar to stock trading, which allows investors to invest in spot copper without physical delivery. At the same time, it takes spot copper as the underlying asset and is a financial derivative that tracks the fluctuation of copper futures

JPMorgan Chase has been planning to launch spot copper ETF for two years, which has been opposed by the domestic manufacturing industry in the United States, saying that the product artificially raised the copper price and caused damage to the United States and the global economy. Because ETF uses spot electrolytic copper as collateral, this copper will disappear from the circulation of the spot market, which will affect the supply of copper and push up the price

in May this year, Vandenberg Feliu, a law firm representing copper consumers, sent a letter to the U.S. Securities and Exchange Commission, saying that the impact of copper ETFs on the copper market was comparable to the copper futures trading scandal of Sumitomo Corporation of Japan from 1995 to 1996

in addition to copper, gold, silver, palladium and other precious metal spot ETFs have been very successful in recent years, but whether copper ETFs can replicate the success of the above varieties remains to be seen. Previously, the spot copper ETF launched by ETF securities and Deutsche Bank in Europe two years ago performed poorly, and the ETF of ETF securities held only 3427 tons of spot copper. However, JPMorgan bankers believe that this product will be successful in the United States, because how can the existing commodity investment channel of large American asset management companies double that of new materials in Hubei Province? The plan clearly states that there are limits

over the years, JPMorgan Chase has carefully laid out its layout along the upstream, middle and downstream industrial chain of the copper industry. At present, JPMorgan Chase is its largest shareholder with a 10.9% stake in the London Metal Exchange. In 2010, when JPMorgan was planning to launch spot copper ETF, it had 50% - 80% of the 350000 tons of copper inventory on the London Metal Exchange. In July of that year, JPMorgan Chase acquired RBS Sempra commodities for us $1.7 billion, controlling one of the four major base metal warehouses in the world on the London Metal Exchange. In addition to controlling warehousing companies, the world's top ten copper mines are more or less branded with JPMorgan Chase, with China accounting for 1/4

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