Nornickel says its fund is first ETC issuer to use blockchain
(Kitco News) - Russian mining giant Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announced today that the Global Palladium Fund (GPF), founded by Nornickel, has launched Exchange Traded Commodities (ETC) for nickel and copper on the London Stock Exchange giving markets unique access to low-cost base metals investment opportunities.
The company said that ETCs are attractively priced with the annual total expense ratios (TERs) of 0.85% for the copper ETC and 0.75% for the nickel ETC, making them the most cost-effective way for European-based investors to achieve exposure to the metals through an exchange-traded product as they seek to take advantage of the energy transition trend.
The listings follow the launch of GPF’s physically backed, low-cost gold, silver, platinum and palladium ETCs at the beginning of 2021. All six physically backed metal ETCs list today on Borsa Italiana — the largest listing of its kind in over a decade.
Nornickel noted that GPF 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. 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, the company said 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.
The Global Palladium Fund was established by Nornickel in 2016 with a three-fold objective, underpinning its role as the leading player in the global palladium industry. The fund’s goal is to create an international financial platform for cooperation with major holders of existing stockpiles of palladium and other metals, promote industrial and investment demand for the metal, and reduce overall volatility of the palladium market.