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 Exchange Traded Commodities (ETCs) listed also on Borsa Italiana — the largest listing of its kind in over a decade.
The 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.
Copper and nickel are two of the minerals that will feature prominently in the transition to clean energy as highlighted by the International Energy Agency in their recent report, The Role of Critical Minerals in Clean Energy Transitions.
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. Earlier, Nornickel’s president, Vladimir Potanin, has pledged to explore technological innovations in financial sector, such as tokenization, to create added value, democratize access and benefit the society. Interros, Russia’s largest investment company founded by Mr. Potanin over 30 years ago, has joined the consortium of investors backing Atomyze – an international tokenization platform.
Norilsk Nickel is following the path of “creating a transparent and responsible digital metal market, forming end-to-end chains of more environmentally friendly products.” – said Mr. Potanin. “The economy is being digitalized, with financial flows moving from the traditional economy to the digital one. Nornickel invests in the development of various digital solutions for industrial applications, including solutions for the tokenization of mutual payments. We find this project important because it will allow us to democratize investor’s access to our metals thanks to modern digital trading technology.” – said Nornickel CEO Vladimir Potanin.
The new ETCs enable investors to take exposure to metals that feature prominently in the transition to the net zero economy. The price of both metals rose strongly in 2020, copper by 25.8% as it benefitted from the growth of Electric Vehicle demand, as well as the roll-out of renewable energy systems for power generation. Nickel prices saw growth of 22.2% driven by its use in battery technology for Electric Vehicles: depending on the model, the nickel content of batteries in battery electric vehicles (BEVs) ranges from 30 – 110 kgs.
As outlined in the issuing prospectus, the copper and nickel backing the GPF ETCs are sourced from producers and metal suppliers which have confirmed their compliance with the Sustainable Development Goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining.