Funds that allow investors to buy and hold physical copper have faced criticism in the past. In 2012, US manufacturers petitioned the Securities and Exchange Commission and even went to court to try to block the launch of similar copper-backed funds proposed by BlackRock Inc. and JPMorgan Chase & Co., arguing the investment vehicles would leave less metal available, creating shortages and boosting prices. Both firms ultimately scrapped their plans.
According to Sprott Asset Management chief executive officer John Ciampaglia, the company’s new fund is too small to make a meaningful dent in a copper market where about 22 million tons is mined annually.
“Having a fund that would be a fraction of that size is beneficial in terms of giving investors another way to invest in the market,” he said in an interview on Tuesday. “We’re not concerned about impacting or influencing the market to a great degree, given how large the…
