abrdn Palladium ETF Trust Q2 2024 Update

TL;DR

**abrdn Palladium ETF Trust Q2 2024: Net assets down to $101.4M from $106.5M.**

AI Summary

abrdn Palladium ETF Trust filed its quarterly report on June 30, 2024, detailing its financial position. The Trust's net assets were $101.4 million as of June 30, 2024, a decrease from $106.5 million at the end of 2023. The report covers the period from January 1, 2024, to June 30, 2024.

Why It Matters

This filing provides investors with the latest financial status of the abrdn Palladium ETF Trust, crucial for understanding the value and performance of their palladium holdings.

Risk Assessment

Risk Level: low — This is a routine quarterly filing for an ETF, providing standard financial disclosures.

Key Numbers

• $101.4M — Net Assets (As of June 30, 2024)
• $106.5M — Net Assets (As of December 31, 2023)

Key Players & Entities

• abrdn Palladium ETF Trust (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• $101.4 million (dollar_amount) — Net assets as of June 30, 2024
• $106.5 million (dollar_amount) — Net assets as of December 31, 2023

FAQ

Key Financial Figures

• $ — ember 31, 2023 (Amounts in 000's of US$, except for Share and per Share data)

Filing Documents

• pall-10q_063024.htm (10-Q) — 333KB
• ex31-1.htm (EX-31.1) — 8KB
• ex31-2.htm (EX-31.2) — 9KB
• ex32-1.htm (EX-32.1) — 4KB
• ex32-2.htm (EX-32.2) — 4KB
• 0001999371-24-009835.txt ( ) — 1937KB
• pall-20240630.xsd (EX-101.SCH) — 18KB
• pall-20240630_cal.xml (EX-101.CAL) — 13KB
• pall-20240630_def.xml (EX-101.DEF) — 27KB
• pall-20240630_lab.xml (EX-101.LAB) — 164KB
• pall-20240630_pre.xml (EX-101.PRE) — 116KB
• pall-10q_063024_htm.xml (XML) — 246KB

SIGNATURES

SIGNATURES 17 abrdn Palladium ETF Trust PART I. FINANCIAL INFORMATION Item 1. Financial Statements of Assets and Liabilities At June 30, 2024 (Unaudited) and December 31, 2023 June 30, 2024 December 31, 2023 (Amounts in 000's of US$, except for Share and per Share data) ASSETS Investment in palladium (cost: June 30, 2024: $ 429,161 ; December 31, 2023: $ 356,585 ) $ 284,119 $ 219,421 Total assets 284,119 219,421 LIABILITIES Fees payable to Sponsor 147 112 Total liabilities 147 112 NET ASSETS (1) $ 283,972 $ 219,309 (1) Authorized share capital is Unlimited with no par value per Share. Shares issued and outstanding at June 30, 2024 were 3,187,500 and at December 31, 2023 were 2,100,000 . Net asset values per Share at June 30, 2024 and December 31, 2023 were $ 89.09 and $ 104.43 , respectively. See Notes to the Financial Statements 1 abrdn Palladium ETF Trust Schedules of Investments At June 30, 2024 (Unaudited) and December 31, 2023 June 30, 2024 Description oz Cost Fair Value % of Net Assets Investment in palladium (in 000's of US$, except for oz and percentage data) Palladium 292,303.9 $ 429,161 $ 284,119 100.05 % Total investment in palladium 292,303.9 $ 429,161 $ 284,119 100.05 % Less liabilities ( 147 ) ( 0.05 )% Net Assets $ 283,972 100.00 % December 31, 2023 Description oz Cost Fair Value % of Net Assets Investment in palladium (in 000's of US$, except for oz and percentage data) Palladium 193,152.2 $ 356,585 $ 219,421 100.05 % Total investment in palladium 193,152.2 $ 356,585 $ 219,421 100.05 % Less liabilities ( 112 ) ( 0.05 )% Net Assets $ 219,309 100.00 % See Notes to the Financial Statements 2 abrdn Palladium ETF Trust of Operations (Unaudited) For the three and six months ended June 30, 2024 and 2023 Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Six Months Ended June 30, 2024 Six Mon

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1. Organization The abrdn Palladium ETF Trust (the "Trust") is a common law trust formed on December 30, 2009 under New York law pursuant to a depositary trust agreement (the "Trust Agreement") executed by abrdn ETFs Sponsor LLC (the "Sponsor") and The Bank of New York Mellon as Trustee (the "Trustee"). The Trust holds palladium and, effective June 18, 2024, issues abrdn Physical Palladium Shares ETF ("Shares") in minimum blocks of 12,500 Shares (also referred to as "Baskets") in exchange for deposits of palladium and distributes palladium in connection with the redemption of Baskets. Prior to June 18, 2024, the number of Shares that constituted a Basket was 25,000 . Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of abrdn Inc,. which is a wholly-owned indirect subsidiary of abrdn plc. The Trust is governed by the Trust Agreement. The investment objective of the Trust is for the Shares to reflect the performance of the price of physical palladium, less the Trust's expenses. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a "Shareholder") an opportunity to participate in the palladium market through an investment in securities. The fiscal year end for the Trust is December 31. The accompanying financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions for Form 10-Q. In the opinion of the Trust's management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the three and six months ended June 30, 2024, and for all periods presented have been made. These financial

Financial Statements (Unaudited)

Financial Statements (Unaudited) The Trust's palladium is recorded at fair value. The cost of palladium is determined according to the average cost method and the fair value is based on the afternoon session of the twice daily fix of an ounce of palladium administered by the London Metal Exchange ("LME") (the "LBMA Palladium Price PM"). Realized gains and losses on transfers of palladium, or palladium distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair value and average cost of palladium transferred. The LME is responsible for the administration of the electronic palladium price fixing system ("LMEbullion") that replicates electronically the manual London palladium fix processes previously employed by the London Platinum and Palladium Fixing Company Ltd ("LPPFCL"), as well as providing electronic market clearing processes for palladium bullion transactions at the fixed prices established by the LME pricing mechanism. LMEbullion, like the previous London palladium fix processes, establishes and publishes fixed prices for troy ounces of palladium twice each London trading day during fixing sessions beginning at 9:45 a.m. London time (the" LBMA Palladium Price AM") and 2:00 p.m. London time (the "LBMA Palladium Price PM"). Once the value of palladium has been determined, the net asset value (the "NAV") is computed by the Trustee by deducting all accrued fees, expenses and other liabilities of the Trust, including the remuneration due to the Sponsor (the "Sponsor's Fee"), from the fair value of the palladium and all other assets held by the Trust. The Trust recognizes changes in fair value of the investment in palladium as changes in unrealized gains or losses on investment in palladium through the Statement of Operations. The per Share amount of palladium exchanged for a purchase or redemption is calculated daily by the Trustee using the LBMA Palladium Price PM to calculate the palladium amount in

Financial Statements (Unaudited)

Financial Statements (Unaudited) The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Trust's investment in palladium is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources. The categorization of the Trust's assets is as shown below: (Amounts in 000's of US$) June 30, 2024 December 31, 2023 Level 1 Investment in palladium $ 284,119 $ 219,421 There were no transfers between levels during the six months ended June 30, 2024 or the year ended December 31, 2023. 2.3. Palladium Receivable and Payable Palladium receivable or payable represents the quantity of palladium covered by contractually binding orders for the creation or redemption of Shares respectively, where the palladium has not yet been transferred to or from the Trust's account. Generally, ownership of palladium is transferred within two business days of the trade date. At June 30, 2024, the Trust had no palladium receivable or payable for the creation or redemption of Shares. At December 31, 2023, the Trust had no palladium receivable or payable for the creation or redemption of Shares. 2.4. Creations and Redemptions of Shares The Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (effective June 18, 2024, a Basket equals a block of 12,500 Shares. Prior to June 18, 2024, a Basket equaled a block of 25,000 Shares). The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is a registered broker-dealer or other securities m

Financial Statements (Unaudited)

Financial Statements (Unaudited) Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. Effective May 28, 2024, the standard settlement period for Shares is one business day. Prior to May 28, 2024, the settlement period for Shares was two business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When palladium is exchanged in settlement of a redemption, it is considered a sale of palladium for financial statement purposes. The amount of palladium represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption of Shares may differ from the value of palladium to be delivered or distributed by the Trust. In order to ensure that the correct amount of palladium is available at all times to back the Shares, the Sponsor accepts an adjustment to its Sponsor Fee in the event of any shortfall or excess on each transaction. For each transaction, this amount is not more than 1/1000th of an ounce of palladium. As the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding Shares as Net Assets. Changes in the number of Shares outstanding are presented in the Statement of Changes in Net Assets. 2.5. Income Taxes The Trust is classified as a "grantor trust" for U.S. federal income tax purposes. As a result, the Trust itself will not be and the Trustee will report the Trust's proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis. The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserv

Financial Statements (Unaudited)

Financial Statements (Unaudited) Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Creations 94,979 6,507 Redemptions ( 23,846 ) ( 7,515 ) Realized (loss) on palladium distributed for the redemption of Shares ( 11,584 ) ( 1,352 ) Transfers of palladium to pay expenses ( 362 ) ( 411 ) Realized gain on palladium transferred to pay expenses ( 213 ) ( 125 ) Change in unrealized gain / (loss) on investment in palladium 984 ( 41,069 ) Closing balance $ 284,119 $ 231,376 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 (Amounts in 000's of US$, except for ounces data) Ounces of palladium Opening balance 193,152.2 166,556.4 Creations 139,958.8 39,271.0 Redemptions ( 40,135.8 ) ( 20,785.8 ) Transfers of palladium to pay expenses ( 671.3 ) ( 531.3 ) Closing balance 292,303.9 184,510.3 Investment in palladium Opening balance $ 219,421 $ 295,638 Creations 136,465 59,238 Redemptions ( 39,469 ) ( 32,479 ) Realized (loss) on palladium distributed for the redemption of Shares ( 23,303 ) ( 7,885 ) Transfers of palladium to pay expenses ( 676 ) ( 834 ) Realized gain / (loss) on palladium transferred to pay expenses ( 441 ) ( 198 ) Change in unrealized (loss) on investment in palladium ( 7,878 ) ( 82,104 ) Closing balance $ 284,119 $ 231,376 2.7. Expenses / Realized Gains / Losses The primary expense of the Trust is the Sponsor's Fee, which is paid by the Trust through in-kind transfers of palladium to the Sponsor. The Trust will transfer palladium to the Sponsor to pay the Sponsor's Fee that accrues daily at an annualized rate equal to 0.60 % of the adjusted daily net asset value ("ANAV") of the Trust, paid monthly in arrears. The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee's monthly fee and out of pocket expenses, the Custodian's fee and the reimbursement of the Custodian's expense

Financial Statements (Unaudited)

Financial Statements (Unaudited) For the three months ended June 30, 2024 and 2023, the Sponsor's Fee was $ 396,037 and $ 381,658 , respectively. For the six months ended June 30, 2024 and 2023, the Sponsor's Fee was $ 711,329 and $ 801,153 , respectively. At June 30, 2024 and at December 31, 2023, the fees payable to the Sponsor were $ 146,869 and $ 111,606 , respectively. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust's palladium as necessary to pay these expenses. When selling palladium to pay expenses, the Trustee will endeavor to sell the smallest amounts of palladium needed to pay these expenses in order to minimize the Trust's holdings of assets other than palladium. Other than the Sponsor's Fee, the Trust had no expenses during the three and six months ended June 30, 2024 and 2023. Unless otherwise directed by the Sponsor, when selling palladium the Trustee will endeavor to sell at the price established by the LBMA Palladium Price PM. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such palladium only if the sale transaction is made at the next LBMA Palladium Price PM or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the average cost of the palladium sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale. Realized gains and losses result from the transfer of palladium for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value and average cost of palladium transferred. 2.8. Subsequent Events In accordance with the pr

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5. Indemnification Under the Trust's organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith, willful misconduct or

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