Traders and analysts are expecting banks to ride on the coat tails of the successful physically-backed ETFs in precious metals amid mounting speculation that they will try to launch similar products using industrial metals, such as copper.
The market is also particularly exercised by the prospect of a physically-backed aluminium ETF planned by Credit Suisse and Glencore.
“There are loads of banks talking about it. It’s the natural evolution that you’ll have a copper ETF,” an executive at a category IV London Metal Exchange member told MB.
Others agreed that banks are considering following in Credit Suisse/Glencore’s footsteps.
“I think we’ll see [banks] try to roll out across all metals,” a London analyst said.
The first sign of a financial institution launching a physically-backed ETF came on Thursday when GAM Holding, a unit of Swiss and Global Asset Management (S&G), was reported to be planning to list physically-backed base metals...