HANetf announced on Wednesday that Sprott Uranium Miners exchange-traded fund (ETF), which features on its European platform, has passed a value of US$51mln for the first time.
It has hit the milestone, which is based on assets under its management, just eight months after launching in May last year – having tracked the North Shore Sprott Uranium Miners Index on HANetf’s European ETF and exchange-traded commodity (ETC) platform.
According to HANetf, demand for uranium has increased off the back of the energy crisis sparked by war in Ukraine, as countries increasingly turn to nuclear power.
“The uranium mining sector is well positioned to benefit from both growing demand and higher prices for uranium,” said Sprott Asset Management (TSX:SII) boss John Ciampaglia, whose company partners with HANetf on the fund.
2022 “saw the highest amount of uranium purchased by utilities in 10 years,” he added.
HANetf suggested uranium was “on the cusp” of becoming a bull market, given higher demand, which has also been boosted by the European Union dubbing nuclear as a source of green energy last July.