Details are in the works for the launch of the first aluminum-backed exchange-traded fund, the Wall Street Journal reported Monday.

Though Glencore International, the world's biggest commodity trader, and Credit Suisse Group are still looking for both an ETF provider and regulatory approval, the new ETF is said to reflect growing interest in physically backed commodity products in the face of looming stricter U.S. regulation in the futures markets.

Abundant supplies of aluminum following a drop in demand associated with the economic downturn is also encouraging the creation of the ETF as a way to help soak up some of that supply and keep prices firm.

Recently, the price of aluminum on the London Metal Exchange has soared, trading some 50 percent higher than the seven-year lows it hit earlier this year, and though some analysts see further growth ahead, the massive inventory overhang could pose a threat to those gains. In fact, LME