abrdn Silver ETF Trust (NYSE: SIVR)

abrdn Silver ETF Trust holds physical silver bullion as its sole asset and issues shares representing fractional undivided beneficial interests in the Trust. The Trust was formed to provide investors with a simple and cost-effective means of gaining exposure to the price of physical silver without the logistical challenges of direct ownership such as storage, insurance, and assay. Its shares are designed to track the performance of the LBMA Silver Price less Trust expenses, offering an exchange-traded product backed by allocated silver held in custody.

The Trust generates revenue through the Sponsor’s Fee, which accrues daily at an annualized rate of 0.30% of the adjusted net asset value (ANAV) of the Trust, subject to a voluntary waiver that reduces the fee from the standard 0.45% rate. This fee is paid in silver delivered to the Sponsor’s unallocated account with the custodian and covers administrative, marketing, and operational expenses assumed by the Sponsor, including Trustee and custodian fees, exchange listing fees, SEC registration costs, audit fees, and legal expenses up to $100,000 annually. The Sponsor may temporarily waive or adjust this fee at its discretion, subject to notice requirements.

The company operates through the following segments:

abrdn Silver ETF Trust operates in the exchange-traded products (ETP) space focused on physical precious metals, specifically silver. It competes with other silver-backed ETFs and exchange-traded notes that aim to track silver prices, though it differentiates itself by holding allocated physical silver rather than using derivatives or futures contracts. Its competitive advantages include minimal credit risk due to the absence of counterparty exposure in its silver holdings, transparency through daily reporting of holdings, and accessibility via traditional brokerage accounts. The Trust does not engage in active management or seek to profit from silver price changes, reinforcing its role as a passive investment vehicle.

The Trust serves institutional and retail investors seeking exposure to silver as a hedge against inflation, currency devaluation, or for portfolio diversification. These investors access the Shares through brokerage accounts and trade them on the NYSE Arca under the ticker symbol associated with the Trust. Specific named customers are not disclosed in the filing, but Authorized Participants—including major financial institutions such as Goldman Sachs & Co., HSBC Securities (USA) Inc., J. P. Morgan Securities LLC, Merrill Lynch Professional Clearing Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., UBS Securities LLC, and Virtu Americas, LLC—play a key role in creating and redeeming baskets of Shares, thereby facilitating liquidity and access for underlying investors.