US regulators have approved the controversial copper-backed ETF from J.P. Morgan, reports the Financial Times.

The FT reports that in the announcement, the SEC declared that it did not foresee that the ETF would disrupt the supply of copper, despite the claims of a number of industrial users of the metal and various politicians.

Moreover, the regulatory agency said that the ETF will "provide another way for market participants and investors to trade in copper, and could enhance competition among trading venues."

The fund has had a long and windy road to approval. For example, the SEC delayed twice approving the product. Partly to allay fears that the ETF would allow other JPMorgan traders to corner the the market on the metal, the firm erected a firewall between the fund's operations and the rest of the trading desks at J.P. Morgan. 

Edited by: HFD


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