Royal Canadian Mint's gold-backed ETF alternative raises $600 million

The Royal Canadian Mint has a hit on its hands after raising $600 million from the sale of its exchange traded fund alternative, exchange traded receipts backed by physical gold bullion held in the mint’s facilities in Ottawa, Ontario.

The Canadian mint, which introduced the ETRs just over three weeks ago, says that ETRs are different than other gold investment products since the purchaser of an ETR owns the actual gold rather than a unit or share in an entity that owns the gold.

Given the money raised, the Globe and Mail calculates that the ETRs may be the largest initial public offering of the year.

The initial size of the ETR service was set at $250 million, and the annual service fee for ETR holders is 0.35%.

The exchange traded receipts will be listed on the Toronto Stock Exchange under the stock symbol MNT.

Image of the Royal Canadian Mint in Ottawa by jpctalbot