Nornickel, the world's largest producer of palladium and high-grade nickel and a major producer of platinum and copper, on Thursday announced that its Global Palladium Fund (GPF) had launched exchange traded commodities (ETC) for nickel and copper on the LSE giving markets access to low-cost base metals investment opportunities.
The ETCs are priced with yearly total expense ratios of 0.85% for the copper ETC and 0.75% for the nickel ETC, making them a cost-effective way for Europe-based investors to achieve exposure to the metals through an exchange-traded product.
“The new digital instruments is a great opportunity for investors to benefit from the rising demand for the base metals as the world is setting on the path towards a greener future,” said Nornickel VP president sales and distribution Anton Berlin.
The listings follow the launch of GPF's physically backed, low-cost gold, silver, platinum and palladium ETCs at the beginning of 2021.
GPF uses blockchain technology to provide investors with enhanced transparency and security in their metal ETCs by recording bar information into distributed ledger technology. The new nickel and copper ETCs will track the respective LME cash prices. The metal backing GPF ETCs is stored in secure warehouses in Rotterdam.
To strengthen ETC investor security, GPF uses IBM's Hyperledger blockchain in the custody chain of the metal. By recording bar and cathode information on the blockchain, it provides clear ownership and an immutable custody chain for investors using the ETCs.