The world’s only physically-backed copper and nickel exchange-traded commodities (ETCs) have today started trading on the Swiss Stock Exchange (SIX).
MMC Norilsk Nickel’s Global Palladium Fund listed the two ETCs, which track spot prices of the metals, to target family offices, wealth managers, institutional and other professional investors around Europe.
Copper and nickel are two of the minerals that will feature prominently in the transition to clean energy as highlighted by the International Energy Agency in their recent report, The Role of Critical Minerals in Clean Energy Transitions.
The metal that is backing the ETCs is stored in secure warehouses in Rotterdam, with GPF highlighting that it is the first ETC issuer to use blockchain technology to provide investors with enhanced transparency and security in their metal ETCs by recording bar information into distributed ledger technology.
All six of GPF’s range of physically backed, low-cost metal ETCs are now SIX-listed.
The new ETCs, which are distributed and promoted by NTree International, have an annual total all-in cost of 0.85% and 0.75% respectively.
GPF said the copper and nickel backing the ETCs is sourced from MMC Norilsk Nickel and other producers and metal suppliers which have confirmed their compliance with the sustainable development goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining. GPF is the only major ETC issuer to make such a pledge.
To strengthen ETC investor security, GPF uses IBM’s Hyperledger Blockchain in the custody chain of the metal, with the recording of bar and cathode information on the blockchain providing clear ownership for investors.
Alexander Stoyanov, chief executive officer of GPF, said: “Today’s listings mean that an even wider group of investors can now invest in physical copper and nickel and benefit from the low price of our ETCs, enhanced transparency and security and sustainable supply source. Both metals not only play an important role in the growth of green technologies and energy but also help to strengthen risk-adjusted returns in a diversified investment portfolio.”