GraniteShares Platinum Trust (NYSE: PLTM)

GraniteShares Platinum Trust is a grantor trust whose sole purpose is to hold physical platinum bullion issued by the trust in exchange for its shares. Each share represents a fractional undivided beneficial interest in the trust's platinum holdings. The trust was created to offer investors a simple and cost effective way to gain exposure to the price of platinum without the logistical challenges of owning and storing the metal directly. The trust’s assets consist entirely of platinum bullion held in custody by a designated custodian, and it does not engage in any active trading or profit seeking activities related to metal price movements.

The trust does not produce operating revenue or earnings; its value is derived from the market price of the platinum it holds, less accrued expenses such as the sponsor’s fee. Authorized participants create and redeem baskets of 50,000 shares by delivering or receiving the corresponding amount of platinum, which allows the share price to track the net asset value of the trust. The sponsor receives a daily fee equal to 0.50% of the trust’s net asset value, which is paid by transferring platinum from the trust’s unallocated account. Investors therefore experience gains or losses that reflect changes in the platinum price after deduction of the sponsor’s fee and other trust expenses.

GraniteShares Platinum Trust competes with other exchange traded products that provide exposure to platinum, including those that use futures contracts or other derivatives. Its distinguishing feature is that it holds allocated physical platinum rather than derivative instruments, which eliminates counterparty and credit risk associated with those products. The trust’s structure also offers investors the ability to buy and sell shares through standard brokerage accounts, making the investment more accessible than purchasing whole bars of platinum. Additionally, because the sponsor assumes many of the trust’s ordinary expenses, the ongoing cost to investors is limited primarily to the sponsor’s fee, which is comparatively low compared with the storage and insurance costs of direct bullion ownership.

The trust’s shares are held by a mix of retail and institutional investors who access the security through national exchanges and brokerage platforms. Authorized participants that facilitate the creation and redemption of baskets include J. P. Morgan Securities LLC, Merrill Lynch Professional Clearing Corp., Morgan Stanley & Co. LLC, and Virtu Americas LLC. These institutions act as intermediaries between the trust and investors, ensuring that shares can be created or redeemed in response to demand. Ultimately, anyone with a brokerage account can purchase the shares to gain exposure to the platinum market.