Sprott Asset Management is set to launch a uranium miners ETF via white-label issuer HANetf.
The Sprott Uranium Miners UCITS ETF (URNM) – the European counterpart of the $981m US-listed ETF – will list on the London Stock Exchange (LSE) in May.
URNM will track the North Shore Sprott Uranium Miners index and will seek exposure to companies involved in the mining, exploration, development and production of uranium.
It will also be able to invest in entities that hold physical uranium, uranium royalties and other non-mining assets.
It is the second uranium product to be listed in Europe in as many days after the launch of the Global X Uranium UCITS ETF on 26 April.
Sprott Asset Management also runs a physical uranium trust with $3bn assets under management (AUM).
Nuclear power, which emits zero direct emissions during operations, has been viewed by some as an important tool in the global energy transition. It currently generates 10% of the world’s electricity supply but more than 50% of zero-carbon emissions electricity, according to Energy.gov.
However, its use has divided opinion across Europe and its inclusion in the European Union’s taxonomy has driven some member states to take legal action.
Furthermore, the reliance on Russia, which supplies 45% of the European Union’s natural gas – has led countries including the UK to consider investing in several nuclear power plants in a bid to diversify its energy supply.
John Ciampaglia, CEO of Sprott Asset Management, said: “We believe that nuclear energy may serve as a key solution to these energy and climate change initiatives. Uranium, the key element in powering nuclear energy, also stands to benefit from this shift towards nuclear power.
“However, major supply deficits currently exist which must be addressed to meet future demand. This may help usher in a new bull market for uranium prices and uranium mining equities.”
Hector McNeil, co-CEO of HANetf, added: “We have seen bold government commitments on restraining the rise in global temperature to 1.5°C but that will require a revolution in how we generate our energy.
“While wind and solar have made huge strides and will be core parts of future electricity generation, it is becoming clear that nuclear generation also needs to be part of the panoply of solutions.”
Earlier this week, HANetf launched the Electric Vehicle Charging Infrastructure Equity UCITS ETF (ELEC), the world’s first ETF specifically targeting electric vehicle (EV) charging infrastructure.