10-K: Abrdn Platinum ETF Trust Reports Increased Shares Outstanding Despite Platinum Price Dip in 2024

The abrdn Platinum ETF Trust saw an increase in outstanding shares during 2024, even as the price of platinum experienced a decline.

Summary

• The abrdn Platinum ETF Trust's primary objective is to mirror the performance of physical platinum prices, net of expenses.
• The Trust's shares outstanding increased from 10,850,000 at the end of 2023 to 12,200,000 at the end of 2024.
• The Trust's NAV increased from $997,445,666 at the end of 2023 to $1,018,947,768 at the end of 2024.
• The price of platinum decreased by 8.70% during 2024, ending the year at $913.00 per ounce.
• The Trust's NAV per share decreased by 9.15% from $91.93 to $83.52 during 2024.
• The Sponsor's Fee for the year ended December 31, 2024, was $5,968,067.
• The Trust creates and redeems shares only in Baskets of 50,000 shares with Authorized Participants.
• Inspections of the Trusts platinum were conducted by Bureau Veritas Commodities UK, Ltd as of July 26, 2024 and January 4, 2025.
• The Trust relies on the information and technology systems of the Trustee, the Custodian, the Marketing Agent and the Sponsor, which could be adversely affected by information systems interruptions, cybersecurity attacks or other disruptions which could have a material adverse effect on the Trusts record keeping and operations.

Sentiment

Score: 5

Explanation: The document presents a mixed picture. While the Trust saw an increase in shares outstanding and NAV, the decrease in platinum prices and NAV per share suggests a slightly negative outlook.

Positives

• The Trust's shares outstanding increased, indicating continued investor interest.
• The Trust's NAV increased, reflecting overall asset growth.
• The Trust maintains effective internal control over financial reporting.

Negatives

• The price of platinum decreased, negatively impacting the NAV per share.
• The NAV per share decreased by a greater percentage than the price of platinum due to the Sponsor's Fee.
• The Trust is exposed to risks related to cybersecurity and potential disruptions to its service providers' systems.

Risks

• Fluctuations in platinum prices could materially adversely affect an investment in the Shares.
• Crises may motivate large-scale sales of platinum which could decrease the price of platinum and adversely affect an investment in the Shares.
• The Shares and their value could decrease if unanticipated operational or trading problems arise.
• Discrepancies, disruptions or unreliability of the LBMA Platinum Price PM could impact the value of the Trusts platinum and the market price of the Shares.
• The amount of platinum represented by each Share will decrease over the life of the Trust due to the recurring deliveries of platinum necessary to pay the Sponsors Fee in-kind and potential sales of platinum to pay in cash the Trust expenses not assumed by the Sponsor.
• The Trusts platinum may be subject to loss, damage, theft or restriction on access.
• The Trusts lack of insurance protection and the Shareholders limited rights of legal recourse against the Trust, the Trustee, the Sponsor, the Custodian and any sub-custodian exposes the Trust and its Shareholders to the risk of loss of the Trusts platinum for which no person is liable.
• Platinum held in the Trusts unallocated platinum account and any Authorized Participants unallocated platinum account is not segregated from the Custodians assets.
• War, a major terrorist attack and other geopolitical events, including but not limited to the war between Russia and Ukraine, outbreaks or public health emergencies (as declared by the World Health Organization), the continuation or expansion of war or other hostilities, or a prolonged government shutdown may cause volatility in the price of platinum due to the importance of a country or region to the platinum markets, market access restrictions imposed on some local platinum producers and refiners, potential impacts to global transportation and shipping and other supply chain disruptions.
• The Trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the Trust.

Future Outlook

The document contains forward-looking statements that are subject to uncertainties and risks, and actual results may differ materially from those expressed or implied.

Industry Context

The report provides an overview of the platinum industry, including supply and demand dynamics, key participants, and factors influencing platinum prices.

Comparison to Industry Standards

• The report references Johnson Matthey PGM Market Reports for industry data on platinum supply and demand.
• The Trust's platinum holdings must conform to the rules, regulations, practices, and customs of the LPPM, including the specifications for a Good Delivery Platinum Plate or Ingot.

Management Changes

Related Party Transactions

• The Sponsor's Fee is paid by the Trust through in-kind transfers of platinum to the Sponsor.

Stakeholder Impact

• Shareholders are exposed to the risks associated with fluctuations in platinum prices.
• Authorized Participants are responsible for the expenses and costs incurred by the Trust that can be directly attributable to Orders submitted by the Authorized Participant.

Key Dates