10-Q: abrdn Silver ETF Trust Reports Strong Q3 Growth

abrdn Silver ETF Trust saw its Net Asset Value surge over 50% in Q3 2025, driven by a significant increase in silver prices and share creations.

Summary

• Net Asset Value (NAV) increased by 51.55% to $3.004 billion at September 30, 2025, from $1.982 billion at June 30, 2025.
• The price per ounce of silver rose 28.35% from $35.98 at June 30, 2025, to $46.18 at September 30, 2025.
• Shares outstanding increased from 57.8 million to 68.3 million during Q3 2025, with 10.5 million new shares created and no redemptions.
• NAV per Share increased by 28.26% to $43.98 at September 30, 2025, from $34.29 at June 30, 2025.
• For the nine months ended September 30, 2025, NAV increased by 111.38% to $3.004 billion from $1.421 billion at December 31, 2024.
• The silver price increased by 59.74% for the nine months, from $28.91 at December 31, 2024, to $46.18 at September 30, 2025.
• Total return, net asset value, was 28.26% for the three months and 59.41% for the nine months ended September 30, 2025.
• The Trust's disclosure controls and procedures were effective as of September 30, 2025.

Sentiment

Score: 9

Explanation: The Trust reported exceptionally strong financial performance driven by a significant increase in silver prices and robust investor demand, leading to substantial growth in net assets and shares outstanding. The consistent fee waiver also adds to the positive outlook.

Positives

• Significant increase in Net Asset Value (NAV) by 51.55% for the quarter and 111.38% for the nine months ended September 30, 2025.
• Strong performance of silver price, rising 28.35% in Q3 and 59.74% for the nine months.
• Substantial increase in Shares outstanding due to creations (10.5 million in Q3, 21.35 million in nine months) with no redemptions in Q3, indicating strong investor demand.
• High total return on net asset value of 28.26% for the quarter and 59.41% for the nine months.
• Sponsor continues to voluntarily waive a portion of its fee, reducing it to 0.30% from 0.45%, benefiting shareholders.
• Effective disclosure controls and procedures, and no material changes in internal control over financial reporting.

Negatives

• The Trust's sole business activity is investment in silver, creating a concentration of risk associated with silver price fluctuations.
• The Trust had no cash balances at September 30, 2025, relying on silver transfers for expenses.

Risks

• Concentration of risk due to the Trust's sole business activity being investment in silver, making it highly susceptible to fluctuations in silver prices.
• Factors affecting silver price include global supply and demand, forward selling by producers, central bank activities, production costs, inflation expectations, currency exchange rates, interest rates, investment activities of hedge/commodity funds, and global/regional political, economic, or financial events (e.g., tariffs, sanctions).
• No assurance that silver will maintain its long-term value in terms of purchasing power.
• In the event that the price of silver declines, the value of an investment in the Shares is expected to decline proportionately.

Future Outlook

The Trust's investment objective remains to reflect the performance of the price of physical silver, less the Trust's expenses. The Sponsor believes the Shares offer a cost-effective investment in silver. No specific forward-looking guidance on silver prices or market performance is provided, consistent with the Trust's passive investment strategy.

Management Comments

• "The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in silver."
• "Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements, to conform such statements to actual results or to reflect a change in management's expectations or predictions."
• "The Trust's disclosure controls and procedures were effective as of September 30, 2025."
• "There have been no changes in the Trust's or Sponsor's internal control over financial reporting during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Trust's or Sponsor's internal control over financial reporting."

Industry Context

The strong performance of the abrdn Silver ETF Trust in Q3 2025, with a 28.35% increase in silver price, reflects a robust period for precious metals. This surge likely indicates increased investor demand for safe-haven assets or inflation hedges, aligning with broader trends seen in the commodity market. The significant increase in shares created suggests growing interest in silver-backed ETFs as a liquid and accessible investment vehicle, potentially outpacing other commodity-focused funds during this period.

Comparison to Industry Standards

• The Trust's expense ratio, net of waiver, is 0.30%, which is competitive for a physical commodity ETF. For example, iShares Silver Trust (SLV) has a gross expense ratio of 0.50%, making SIVR's net expense ratio more attractive.
• The 28.26% total return for the quarter and 59.41% for the nine months ended September 30, 2025, directly reflects the underlying silver price performance, which is the Trust's objective. This performance would be compared to other silver ETFs and the spot price of silver. For instance, if the LBMA Silver Price increased by 28.35% in Q3, the ETF's return of 28.26% indicates effective tracking, with the slight difference attributable to the Sponsor's Fee.
• The substantial increase in ounces of silver held (from 48.9 million oz to 65.1 million oz) and shares outstanding (from 51.5 million to 68.3 million) suggests strong asset gathering, potentially outpacing some smaller or less liquid commodity ETFs in terms of growth.

Related Party Transactions

• The Sponsor (abrdn ETFs Sponsor LLC) and the Trustee (The Bank of New York Mellon) are considered related parties to the Trust.
• The Sponsor pays the Trustee's and Custodian's fees, which are not separate expenses of the Trust.
• The Trustee and Custodian and their affiliates may act as Authorized Participants, purchasing or selling Shares for their own account or as agents.
• The Trustee and Custodian and their affiliates may also purchase or sell silver directly for their own account or as agents.

Stakeholder Impact

• Shareholders: Benefited from a significant increase in NAV per Share and total return due to rising silver prices and strong asset growth. The continued fee waiver also positively impacts their returns.
• Sponsor (abrdn ETFs Sponsor LLC): Receives fees based on the Trust's ANAV, which increased substantially, leading to higher fee revenue despite the voluntary waiver.
• Authorized Participants: Engaged in significant creation activity, indicating healthy market liquidity and demand for the ETF.
• Custodian (ICBC Standard Bank Plc): Continues to hold the Trust's silver, benefiting from the custody arrangement.

Next Steps

• The Trust will continue to operate under its objective to reflect the performance of the price of physical silver, less expenses.
• The Sponsor will continue to monitor and manage the Trust's operations, including the voluntary fee waiver.
• The Trust will continue to file required reports under the Securities Exchange Act of 1934.

Key Dates

Recommendation

The abrdn Silver ETF Trust demonstrated exceptional performance in Q3 and the nine months ended September 30, 2025, driven by a robust increase in silver prices and strong investor demand, as evidenced by significant share creations and no redemptions in Q3. The Net Asset Value and NAV per Share saw substantial growth, indicating a highly favorable market for silver. The Sponsor's continued voluntary fee waiver further enhances shareholder value. Given the strong underlying asset performance, increasing investor interest, and efficient operational management, the Trust presents a compelling investment opportunity for exposure to physical silver.

Keywords

Silver ETF, SIVR, abrdn, Physical Silver, Commodity ETF, Precious Metals, Investment Trust, SEC 10-Q, Financial Report, Net Asset Value, Silver Price