10-Q: Amplify Commodity Trust Reports Mixed Results for Q3 2025 Amidst Market Volatility
Quarterly Report
Amplify Commodity Trust's Q3 2025 results reveal a complex interplay of market factors affecting its dry bulk and tanker shipping ETFs.
Summary
- Amplify Commodity Trust's Q3 2025 report covers the performance of its two series: Breakwave Dry Bulk Shipping ETF (BDRY) and Breakwave Tanker Shipping ETF (BWET).
- BDRY's investment objective is to provide exposure to the daily change in dry bulk freight futures prices.
- BWET aims to provide exposure to the daily change in crude oil tanker freight futures prices.
- For the three months ended March 31, 2025, BDRY's net income was $5,782,492, while BWET's net income was $109,807.
- For the nine months ended March 31, 2025, BDRY reported a net loss of ($9,926,054), and BWET reported a net loss of ($996,307).
- BDRY's net asset value (NAV) per share increased by 5.00% during the three months ended March 31, 2025, and decreased by 47.69% during the nine months ended March 31, 2025.
- BWET's NAV per share increased by 10.17% during the three months ended March 31, 2025, and decreased by 34.77% during the nine months ended March 31, 2025.
- The report details the composition of the BDRY and BWET benchmark portfolios, which consist of freight futures contracts on specified indexes.
- The report also discusses various risk factors, including investment-related risks, liquidity risk, natural disaster/epidemic risk, and regulatory risks.
Sentiment
Score: 5
Explanation: The document presents a mixed picture, with positive results for the quarter offset by negative results for the nine-month period. Market volatility and geopolitical risks add to the uncertainty.
Positives
- Both BDRY and BWET experienced net income for the three months ended March 31, 2025.
- BDRY and BWET's NAV per share increased during the three months ended March 31, 2025.
- Dry bulk spot rates increased considerably during the three months ended March 31, 2025, benefiting BDRY.
- The crude tanker orderbook for the next few years remains historically low, which could aid overall market balance for BWET.
Negatives
- Both BDRY and BWET reported net losses for the nine months ended March 31, 2025.
- BDRY and BWET's NAV per share decreased during the nine months ended March 31, 2025.
- Iron ore trade volumes to China experienced a decline, negatively impacting demand for iron ore and potentially affecting BDRY.
- Slower oil import growth and weaker domestic demand in China remains a major concern for tanker rates, potentially affecting BWET.
Risks
- Fluctuations in freight futures prices could materially adversely affect the values and performance of BDRY and BWET shares.
- Charter rates for dry bulk vessels and crude oil tankers are volatile and may remain at low levels or decrease further in the future.
- The Russia-Ukraine war poses an increasing risk for global economic growth and commodity prices.
- The Hamas-Israel conflict has stoked fears of oil supply instability.
- Increased tariffs by the US and other countries can have a meaningful negative impact on trade volumes.
- The Dodd-Frank Act and other regulatory changes could have a significant impact on the commodities markets.
Future Outlook
The report mentions that the recent announcement by OPEC+ to increase oil production starting in May 2025 should lead to a rise in demand for crude tankers, potentially benefiting BWET. The dry bulk orderbook continues to increase throughout the period from relatively low levels as period rates remained elevated, incentivizing owners to place new orders.
Industry Context
The report provides insights into the dry bulk and tanker shipping industries, including factors affecting spot rates, trade volumes, and geopolitical influences. It notes the impact of the Russia-Ukraine war and the Israel-Hamas conflict on global shipping and commodity prices.
Comparison to Industry Standards
- The report states that BDRY and BWET are the only Freight futures ETFs globally, making direct comparison to industry standards challenging.
- The report compares the returns of BDRY and BWET with their respective benchmark portfolio returns, highlighting the factors that contribute to differences between the NAV price and the benchmark value.
Stakeholder Impact
- Shareholders are exposed to the volatility of freight futures markets.
- The Sponsor and CTA are responsible for managing the Funds and ensuring compliance with regulations.
- Authorized Participants play a role in creating and redeeming shares of the Funds.
Key Dates
| Date | Description |
|---|---|
| July 23, 2014 | Amplify Commodity Trust (the Trust) was organized as a Delaware statutory trust. |
| March 22, 2018 | BDRY commenced investment operations and trading on the NYSE Arca. |
| May 3, 2023 | BWET commenced investment operations and trading on NYSE Arca. |
| February 14, 2024 | ETF Managers Capital LLC resigned as Sponsor to the Trust, and Amplify Investments LLC was appointed as successor sponsor. |
| February 15, 2024 | Amplify Investments LLC began managing and controlling the Funds. |
| November 5, 2024 | WithumSmith+Brown PC was dismissed as the Trusts independent registered public accounting firm and appointed Cohen & Company, Ltd. |
| March 31, 2025 | End of the quarterly period covered by the report. |
| May 1, 2025 | The registrant had 10,450,040 outstanding shares as of May 1, 2025 (BDRY) and 125,100 outstanding shares as of May 1, 2025 (BWET). |
| May 15, 2025 | Date of report signature. |
Keywords
Breakwave Dry Bulk Shipping ETF, Breakwave Tanker Shipping ETF, Freight Futures, Commodity ETF, Dry Bulk Shipping, Tanker Shipping, Amplify Commodity Trust, BDRY, BWET, Shipping
Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.