Amplify Commodity Trust Shifts Sponsor, Details ETF Holdings in 10-K

TL;DR

**Amplify Commodity Trust's 10-K confirms a stable, albeit niche, play in freight futures, but the lack of distributions and reliance on volatile shipping markets makes it a speculative long-term hold.**

AI Summary

Amplify Commodity Trust, operating as a Delaware statutory trust, filed its 10-K for the fiscal year ended June 30, 2025. The Trust, formerly ETF Managers Group Commodity Trust I, changed its name after Amplify Investments LLC took over as Sponsor on February 14, 2024. The Trust manages two commodity pools: Breakwave Dry Bulk Shipping ETF (BDRY), which commenced operations on March 22, 2018, and Breakwave Tanker Shipping ETF (BWET), which commenced operations on May 3, 2023. Both ETFs aim to provide exposure to daily changes in freight futures prices by investing substantially all assets in exchange-cleared futures contracts. As of September 1, 2025, BDRY had 5,475,040 outstanding shares, and BWET had 125,100 outstanding shares. The BDRY Benchmark Portfolio, consisting of Capesize, Panamax, and Supramax Dry Freight Futures, had a total market value of $69,001,635 as of June 30, 2025. The BWET Benchmark Portfolio, comprising TD3C and TD20 Oil Freight Futures, had a total market value of $1,317,595 as of June 30, 2025. The Trust does not intend to borrow money or make distributions, focusing on capital appreciation.

Why It Matters

This 10-K filing is crucial for investors as it details the operational structure and holdings of Amplify Commodity Trust's two commodity ETFs, BDRY and BWET, following the sponsor change to Amplify Investments LLC. The specific breakdown of futures contracts, such as BDRY's $69,001,635 in dry bulk futures and BWET's $1,317,595 in tanker futures as of June 30, 2025, provides transparency into their exposure to global shipping markets. This competitive landscape, where specialized ETFs track volatile freight rates, offers unique diversification opportunities but also carries inherent risks tied to global trade and commodity demand. Employees of Amplify Investments LLC and Breakwave Advisors LLC are directly impacted by the continued management fees and service agreements, while customers gain insight into the underlying assets and strategies of their investments.

Risk Assessment

Risk Level: medium — The risk level is medium due to the inherent volatility of commodity futures markets and the specific exposure to dry bulk and crude oil freight rates. The filing states that initial margin requirements for futures contracts range from approximately 10% to 40% of notional value, indicating significant leverage potential and exposure to daily mark-to-market adjustments. While the Funds hold cash equivalents like U.S. Treasuries for liquidity, the underlying assets are subject to global economic fluctuations, geopolitical events, and supply-demand imbalances in the shipping industry.

Analyst Insight

Investors should carefully evaluate their risk tolerance for commodity-specific, long-only futures exposure. Given the stated objective of capital appreciation and no intended distributions, this is suitable for investors seeking growth in the shipping sector, not income. Monitor global trade volumes and energy demand, as these directly impact the freight futures underlying BDRY and BWET.

Key Numbers

• $69,001,635 — Market Value of BDRY Benchmark Portfolio (Total value of Dry Freight Futures as of June 30, 2025)
• $1,317,595 — Market Value of BWET Benchmark Portfolio (Total value of Oil Freight Futures as of June 30, 2025)
• 5,475,040 — Outstanding Shares of BDRY (As of September 1, 2025)
• 125,100 — Outstanding Shares of BWET (As of September 1, 2025)
• 10% — Minimum Initial Margin (Required for futures positions, indicating leverage)
• 40% — Maximum Initial Margin (Required for futures positions, indicating leverage)
• February 14, 2024 — Date of Sponsor Transfer (Amplify Investments LLC became the new Sponsor)
• July 23, 2014 — Trust Organization Date (Date Amplify Commodity Trust was organized as a Delaware statutory trust)
• March 22, 2018 — BDRY Investment Operations Commencement (Date BDRY began investment operations and trading on NYSE Arca)
• May 3, 2023 — BWET Investment Operations Commencement (Date BWET began investment operations and trading on NYSE Arca)

Key Players & Entities

• Amplify Commodity Trust (company) — Registrant and issuer of ETFs
• Amplify Investments LLC (company) — Sponsor and Commodity Pool Operator (CPO) of the Trust
• Breakwave Dry Bulk Shipping ETF (company) — One of the two commodity pools managed by the Trust
• Breakwave Tanker Shipping ETF (company) — One of the two commodity pools managed by the Trust
• Breakwave Advisors LLC (company) — Commodity Trading Advisor (CTA) for both BDRY and BWET
• U.S. Bank (company) — Custodian for the Funds
• U.S. Bancorp Fund Services (company) — Fund Accountant, Transfer Agent, and Administrator for the Funds
• Commodity Futures Trading Commission (regulator) — Regulates the Sponsor as a CPO
• National Futures Association (regulator) — Sponsor and CTA are members
• Baltic Exchange Ltd. (company) — Publishes Reference Indexes for freight rates

FAQ

Risk Factors

• Commodity Pool Operator Registration [medium — regulatory]: The Sponsor, Amplify Investments LLC, is registered as a commodity pool operator with the CFTC and is a member of the NFA. Failure to maintain this registration or comply with CFTC/NFA regulations could result in fines, sanctions, or suspension of operations.
• Freight Futures Price Volatility [high — market]: Both BDRY and BWET aim to provide exposure to daily changes in freight futures prices. These markets are inherently volatile, and significant price fluctuations can lead to substantial losses for investors, especially given the use of futures contracts which can involve leverage.
• Reliance on Third-Party Exchanges [medium — operational]: The Funds invest in exchange-cleared futures contracts. Disruptions to these exchanges, such as technical failures or regulatory actions, could impact the Funds' ability to trade and achieve their investment objectives.
• Leverage Risk [high — financial]: While not explicitly stated as a percentage in the provided text, futures contracts typically involve leverage. The minimum initial margin requirement of 10% and maximum of 40% indicates that the Funds are employing leverage, which magnifies both potential gains and losses.
• Sponsor Change Impact [low — operational]: The Trust underwent a change in Sponsor on February 14, 2024, with Amplify Investments LLC taking over from ETF Managers Group Commodity Trust I. While the new sponsor is in place, any transition-related operational hiccups or changes in strategy could affect fund performance.
• Concentration Risk in Dry Bulk and Tanker Shipping [high — market]: BDRY focuses on dry bulk freight futures (Capesize, Panamax, Supramax), and BWET focuses on oil freight futures (TD3C, TD20). This concentration exposes investors to the specific risks and cyclical nature of the shipping industry, including global trade volumes, geopolitical events, and supply/demand dynamics for commodities.

Industry Context

The Amplify Commodity Trust operates within the specialized niche of commodity-linked ETFs, focusing specifically on the shipping industry through dry bulk (BDRY) and tanker (BWET) freight futures. This sector is highly sensitive to global economic activity, trade flows, geopolitical events, and commodity demand. The competitive landscape includes other specialized commodity ETFs and direct investments in shipping companies, with success heavily reliant on accurate forecasting of freight rates and market cycles.

Regulatory Implications

As commodity pools, the Funds are subject to regulation by the CFTC and NFA. The Sponsor's registration as a CPO necessitates ongoing compliance with rules regarding disclosure, record-keeping, and anti-fraud provisions. Any changes in these regulations or non-compliance could lead to significant penalties and operational disruptions.

What Investors Should Do

1. Review shipping market fundamentals
2. Assess leverage risk tolerance
3. Monitor Sponsor's compliance and operational stability

Key Dates

• 2014-07-23: Trust Organization Date — Establishes the legal foundation and initial formation of Amplify Commodity Trust as a Delaware statutory trust.
• 2024-02-14: Sponsor Transfer — Amplify Investments LLC became the new Sponsor, replacing the Former Sponsor, marking a significant change in management and operational control.
• 2018-03-22: BDRY Investment Operations Commencement — The Breakwave Dry Bulk Shipping ETF (BDRY) began its investment operations and trading, allowing investors to gain exposure to dry bulk freight futures.
• 2023-05-03: BWET Investment Operations Commencement — The Breakwave Tanker Shipping ETF (BWET) began its investment operations and trading, providing exposure to oil freight futures.

Glossary

Commodity Pool

A collective investment vehicle that trades in futures contracts, options on futures, or swaps. The Trust operates two commodity pools, BDRY and BWET. (Defines the legal structure and regulatory oversight applicable to the Funds under the CEA.)

Commodity Pool Operator (CPO)

An entity that operates or solicits funds for a commodity pool. Amplify Investments LLC is registered as a CPO with the CFTC. (Highlights the regulatory compliance requirements and oversight the Sponsor must adhere to.)

Dry Freight Futures

Exchange-cleared futures contracts based on the cost of shipping dry bulk commodities like iron ore, coal, and grain. (The primary underlying asset for the BDRY ETF, driving its investment objective and performance.)

Oil Freight Futures

Exchange-cleared futures contracts related to the cost of shipping crude oil and refined petroleum products, such as TD3C and TD20 contracts. (The primary underlying asset for the BWET ETF, dictating its investment strategy and risk exposure.)

Initial Margin

The amount of money required by a broker to open a futures position. The Trust notes minimum and maximum initial margins of 10% and 40%, respectively. (Indicates the use of leverage in the Funds' trading strategies, amplifying potential gains and losses.)

Benchmark Portfolio

A specific portfolio of futures contracts used to track the performance of a particular market segment. BDRY and BWET track their respective Benchmark Portfolios. (Defines the specific assets and strategy employed by each ETF to achieve its investment objective.)

Year-Over-Year Comparison

This analysis is based on the 10-K for the fiscal year ended June 30, 2025. Key changes from the prior period include the Sponsor transfer to Amplify Investments LLC on February 14, 2024, and the commencement of operations for BWET on May 3, 2023. Specific year-over-year financial metrics like revenue, net income, and margins are not directly comparable without the prior year's 10-K data, but the introduction of BWET represents a significant expansion of the Trust's offerings.

Key Financial Figures

• $15,000 — rative services equal to the greater of $15,000 or 0.02% of the Fund's average daily ne
• $10,000 — rvices, with a minimum of approximately $10,000 payable annually. Pursuant to the Marke
• $125,000 — 15% of its average daily net assets, or $125,000. BDRY also pays an annual fee to Breakw

Filing Documents

• ea0256815-10k_amplify.htm (10-K) — 1076KB
• ea025681501ex23-3_amplify.htm (EX-23.3) — 2KB
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• ea025681501ex31-1_amplify.htm (EX-31.1) — 10KB
• ea025681501ex31-2_amplify.htm (EX-31.2) — 10KB
• ea025681501ex32-1_amplify.htm (EX-32.1) — 4KB
• ea025681501ex32-2_amplify.htm (EX-32.2) — 3KB
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• 0001213900-25-092470.txt ( ) — 7348KB
• bdry-20250630.xsd (EX-101.SCH) — 53KB
• bdry-20250630_cal.xml (EX-101.CAL) — 24KB
• bdry-20250630_def.xml (EX-101.DEF) — 224KB
• bdry-20250630_lab.xml (EX-101.LAB) — 347KB
• bdry-20250630_pre.xml (EX-101.PRE) — 228KB
• ea0256815-10k_amplify_htm.xml (XML) — 608KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 21 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 22 Item 2.

Properties

Properties 22 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 22 Part II 23 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23 Item 6. Reserved 24 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 8.

Financial Statements and Supplemental Data

Financial Statements and Supplemental Data 44 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 75 Item 9A.

Controls and Procedures

Controls and Procedures 75 Item 9B. Other Information 75 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 75 Part III 76 Item 10. Directors, Executive Officers and Corporate Governance 76 Item 11.

Executive Compensation

Executive Compensation 77 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78 Item 13. Certain Relationships and Related Transactions, and Director Independence 79 Item 14. Principal Accountant Fees and Services 79 Part IV 80 Item 15. Exhibits and Financial Statement Schedules 80 Exhibit Index 80

Signatures

Signatures 82 i Part I

Business

Item 1. Business The Trust and the Funds Amplify Commodity Trust (formerly, ETF Managers Group Commodity Trust I) (the "Trust") was organized as a Delaware statutory trust on July 23, 2014. Effective after the close of trading on February 14, 2024, ETF Managers Capital LLC, as the prior sponsor and commodity pool operator (the "Former Sponsor") of the Trust, entered into an agreement (the "Transfer Agreement") to resign as Sponsor to the Trust and transfer its role as the Trust's sponsor to Amplify Investments LLC ("the Sponsor"). Under the terms of the Transfer Agreement, the Former Sponsor no longer has any involvement in the operations, management or marketing of the Fund. In connection with this change of Sponsor, Trust changed its name from the ETF Managers Group Commodity Trust I to the Amplify Commodity Trust. The Trust is a series trust formed pursuant to the Delaware Statutory Trust Act and currently includes two separate series: (i) Breakwave Dry Bulk Shipping ETF ("BDRY"), which is a commodity pool that continuously issues shares of beneficial interest that may be purchased and sold on the NYSE Arca, Inc. stock exchange ("NYSE Arca"), and(ii) Breakwave Tanker Shipping ETF ("BWET," and together with BDRY, each, a "Fund" and collectively, the "Funds"), which is also a commodity pool that continuously issues shares of beneficial interest that may be purchased and sold on NYSE Arca. BDRY commenced investment operations on March 22, 2018. BDRY commenced trading on NYSE Arca on March 22, 2018 and trades under the symbol "BDRY." BWET commenced investment operations on May 3, 2023. BWET commenced trading on the NYSE Arca on May 3, 2023 and trades under the symbol "BWET." The principal office of the Trust and the Funds is located at 3333 Warrenville Road, Suite 350, Lisle, IL 60532. The telephone number is (855) 267-3837. The Sponsor The Funds are each managed and controlled by Amplify Investments LLC (the "Sponsor"), a single member limited liability co

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View this 10-K filing on SEC EDGAR