MOSCOW – A fund of Russia's Norilsk Nickel has launched Blockchain-tracked securities known as Exchange Traded Commodities (ETCs) which offer investors exposure to the spot prices of palladium, platinum, gold and silver without owning them.
Nornickel, the world's largest producer of palladium, hopes to attract more investors to metals.
"We expect significant growth in investor demand for access to metals over the next decade as economies undertake the energy transition and focus on meeting the challenge of global climate change," Anton Berlin, Nornickel's head of sales, said in a statement.
Nornickel's Global Palladium Fund launched the four ETCs on the Deutsche Boerse on Monday and plans to expand them to the London Stock Exchange within a few days, it said.
It will contribute physical palladium, platinum, gold and silver to the instruments, which are offered at London Metals Exchange spot prices. The total expense ratio is estimated at between 0.145% and 0.20%, the Nornickel fund said.
The ETCs will use Blockchain technology for security and proof of ownership. They will also trace the way the metals were produced and include the producer's credentials of environmental standards.
Nornickel has said it plans to launch similar ETCs for nickel and copper in the future.