Lawyers for Southwire Co, Encore Wire Corp , Luvata and AmRod have sent a letter to the SEC saying that the proposed copper ETF will victimize them because, if allowed to trade, the ETF would raise copper prices.
“The risks associated with the removal of so much copper could have potentially devastating effects not just on potential investors in the shares, which should be a concern to the SEC, but also on existing and future investors in industries that depend on copper for their primary feedstock,” said the letter from attorneys at Vandenberg & Feliu LLP.
These firms account for 50% of copper usage in US fabrication and they are objecting the proposed copper ETF by BlackRock.
Earlier in the week, Senator Carl Levin sent an opposition letter to the SEC saying that the proposed JP Morgan’s ETF would do the same as this lawyer explained but has provided additional statistics to substantiate the effects.
As a result of Sen Levin’s letter, the SEC has extended its July 19 decision of JP Morgan’s ETF and has asked for more “feedback” from the bank.
JP Morgan has 30 days to respond.