The US Platinum Fund by ETFSecurities is still pending authorization from the SEC, but a new study may put a damper on the size and scope of the ETF, even if it is approved.

Peter Duncan from Johnson Matthey, a metals producer, indicated that if ETFSecurities is granted approval, the US market for platinum would grow larger than Europe, where a platinum ETF is already traded. The new American exchange-traded fund would create an additional 200,000 ounces of demand from investors, NASDAQ reports.

Exchange-traded funds account for less than 1/16 of the total demand for platinum and just 1/10 of the palladium demand. However, the SEC and CTFC are likely to place stringent rules on any US-based platinum fund to limit the market impact these funds may have.