Always looking to keep things interesting, the SEC has approved plans for an exchange-traded fund that will "wreak havoc on the U.S. and global economy."*
JPMorgan Chase & Co. (JPM) won regulatory approval for the first U.S. exchange-traded fund backed by physical copper, which some industrial users said may disrupt the market.
The proposed rule change by NYSE Arca Inc. to list JPM XF Physical Copper Trust was approved, the regulator said in an order on its website dated Dec. 14. BlackRock Inc. (BLK) and ETF Securities Ltd. also have said they plan to start physically backed ETFs for industrial metals in the U.S.
The SEC dismissed worries that the ETFs would result in all available copper being scooped up and warehoused, pushing civilization back into the Stone Age.
JPMorgan Wins Approval for First U.S. Physical Copper ETF [Bloomberg]
SEC Backs J.P. Morgan's Plans for Physical Copper ETF [WSJ]
SEC approves JPMorgan copper ETF [FT]
Red Kite Warns Copper ETF Would 'Wreak Havoc' [FINalternatives]
*According to a hedge fund that may have a dog in this fight.