Wednesday, October 27, 2010

JPMorgan (NYSE:JPM) Launching Copper Exchange Traded Fund

In documents filed with the SEC, JPMorgan (NYSE:JPM) revealed they're going to launch a physical copper ETF, or exchange traded fund. There was no launch date or ticker named revealed in the filing.

Per the S-1 Registration Statement with the SEC, JPMorgan did reveal the name of the ETF will be J.P. Morgan Physical Copper Trust. Sponsoring the trust will be J.P. Morgan Commodity ETF Services.

The registered amount of shares is 6,180,000, which will include a top offering price of $80.87 a share.

JPMorgan said in the filing, "The shares are designed to mirror as
closely as possible the performance of the price of physical copper..."'

The trust will only take delivery on Physical Copper Grade A as assets. There will be no trading of copper future contracts by the trust. Physical delivery will be taken in the form of LME Copper Cathodes.

Copper will be warehoused by the Henry Bath Group, a JPMorgan wholly owned subsidiary. Countries holding the warehousing the physical copper will include Italy, Germany, the Netherlands, the United States, Malaysia, Singapore, South Korea, Spain, and the United Kingdom.

Some reports say the copper will held in the storage facilities of Henry Bath in the United States.

No comments: