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UNITED STATES SECURITIES AND EXCHANGE COMMISSION








Washington, D.C. 20549










Form


10-Q




























QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934






For the Quarterly Period Ended




September 30, 2021








or





























TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934






For the Transition Period




from _______________ to______________








Commission File Number:




001-34412





















ABERDEEN STANDARD SILVER ETF TRUST







(Exact name of registrant as specified in its charter)





















New York














26-4586763









(State or other jurisdiction of incorporation or






organization)










(I.R.S. Employer Identification No.)





















c/o Aberdeen Standard Investments ETFs Sponsor LLC















712 Fifth Avenue


,


49

th

Floor










New York


,


NY








(Address of principal executive offices)












10019








(Zip Code)









(


844


)


383-7289








(Registrant’s telephone number, including area code)






Securities registered pursuant to Section 12(b) of the Act:























Title of each class










Trading Symbol(s)










Name of each


exchange on which


registered







Aberdeen Standard Physical Silver Shares ETF










SIVR










NYSE Arca







Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes


☒   No ☐





Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes


☒   No ☐





Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.






























Large Accelerated Filer












Accelerated Filer








Non-Accelerated Filer











Smaller Reporting Company





















Emerging Growth Company














If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes  ☒


No






As of November 3, 2021 Aberdeen Standard
Silver ETF Trust had


43,650,000


Aberdeen Standard Physical Silver Shares ETF outstanding.





























ABERDEEN STANDARD SILVER ETF TRUST








FORM 10-Q








FOR THE


QUARTER


ENDED


SEPTEMBER 30, 2021








INDEX
















































































































































PART I. FINANCIAL INFORMATION







































Item 1.









Financial Statements








1





























Item 2.









Management’s Discussion and Analysis of Financial Condition and Results of Operations








13





























Item 3.









Quantitative and Qualitative Disclosures About Market Risk








15





























Item 4.









Controls and Procedures








15





























PART II. OTHER INFORMATION





































Item 1.









Legal Proceedings








16





























Item 1A.









Risk Factors








16





























Item 2.









Unregistered Sales of Equity Securities and Use of Proceeds








16





























Item 3.









Defaults Upon Senior Securities








16





























Item 4.









Mine Safety Disclosures








16





























Item 5.









Other Information








16





























Item 6.









Exhibits








17





























SIGNATURES















18




















ABERDEEN STANDARD SILVER
ETF TRUST







P


ART I. FINANCIAL INFORMATION








It


em 1. Financial Statements






Statements of Assets and Liabilities


At September 30, 2021 (Unaudited) and December 31, 2020
























































































































































September 30, 2021













December 31, 2020










(Amounts in 000’s of US$, except for Share and per Share data)

























ASSETS





























Investment in silver (cost: September 30, 2021: $


859,490


; December 31, 2020: $


608,877


)







$





895,623










$





863,884







Total assets











895,623














863,884


















LIABILITIES





























Fees payable to Sponsor











219














220







Total liabilities











219














220




































NET ASSETS

(1)









$





895,404










$





863,664















(1)





Authorized share capital is




unlimited




with




no




par value per Share. Shares issued and outstanding at September 30, 2021 were




43,150,000




and at December 31, 2020 were




33,750,000




. Net asset values per Share at September 30, 2021 and December 31, 2020 were $


20.75


and $


25.59


, respectively.










See Notes to the Financial Statements











1













ABERDEEN STANDARD SILVER ETF TRUST






Schedules of Investments



At September 30, 2021 (Unaudited) and December 31, 2020































































































































September 30, 2021










Description










oz













Cost













Fair Value













% of Net Assets










Investment in silver



(in 000’s of US$, except for oz and percentage data)








































Silver











41,608,524.3










$





859,490










$





895,623














100.02




%






Total investment in silver












41,608,524.3










$





859,490










$





895,623














100.02




%




Less liabilities


































(

219




)










(

0.02




)%






Net Assets
































$





895,404














100.00




%
































































































































December 31, 2020










Description










oz













Cost













Fair Value













% of Net Assets










Investment in silver



(in 000’s of US$, except for oz and percentage data)








































Silver











32,617,862.0










$





608,877










$





863,884














100.03




%






Total investment in silver












32,617,862.0










$





608,877










$





863,884














100.03




%




Less liabilities


































(

220




)










(

0.03




)%






Net Assets
































$





863,664














100.00




%










See Notes to the Financial Statements











2













ABERDEEN STANDARD SILVER ETF TRUST






Statements of Operations (Unaudited)



For the three and nine months ended September 30, 2021 and 2020







































































































































































































































































































































































































































Three Months Ended


September 30, 2021













Three Months Ended


September 30, 2020












Nine Months
Ended




September 30, 2021











Nine
Months Ended




September 30, 2020









(Amounts in 000’s of US$, except for Share and per Share data)











































EXPENSES





















































Sponsor’s Fee







$





1,119










$





833










$





3,306










$





1,758







Less: Waiver










(

373




)










(

278




)










(

1,102




)










(

586




)




Total expenses











746














555














2,204














1,172


























































Net investment loss










(

746




)










(

555




)










(

2,204




)










(

1,172




)























REALIZED AND UNREALIZED GAINS / (LOSSES)





















































Realized gain on silver transferred to pay expenses











153














84














509














38







Realized gain on silver distributed for the redemption of Shares











0














3,029














14,272














2,793







Change in unrealized (loss) / gain on investment in silver










(

174,242




)











160,261













(

218,874




)











170,316







Total (loss)/gain on investment in silver










(

174,089




)











163,374













(

204,093




)











173,147


























































Change in net assets from operations







$




(

174,835




)







$





162,819










$




(

206,297




)







$





171,975


























Net increase / (decrease) in net assets per Share








$




(

4.14




)







$





5.06










$




(

5.17




)







$





6.18


























Weighted average number of Shares












42,279,348














32,159,783














39,897,619














27,823,540













See Notes to the Financial Statements











3













ABERDEEN STANDARD SILVER ETF TRUST






Statements of Changes in Net Assets (Unaudited)



For the three and nine months ended September 30, 2021 and 2020
















































































































































































































Three Months Ended September 30, 2021













Three Months Ended September 30, 2020










(Amounts in 000’s of US$, except for Share data)










Shares













Amount













Shares













Amount








Opening balance











41,700,000










$





1,036,550














29,400,000










$





507,681







Net investment loss






















(

746




)






















(

555




)




Realized gain on investment in silver























153


























3,113







Change in unrealized (loss)/gain on investment in silver






















(

174,242




)























160,261







Creations











1,450,000














33,689














4,650,000














110,878







Redemptions






































(

500,000




)










(

11,720




)




Closing balance











43,150,000










$





895,404














33,550,000










$





769,658







































































































































































































































Nine Months Ended September 30, 2021













Nine Months Ended September 30, 2020










(Amounts in 000’s of US$, except for Share data)










Shares













Amount













Shares













Amount








Opening balance











33,750,000










$





863,664














23,300,000










$





407,464







Net investment loss






















(

2,204




)






















(

1,172




)




Realized gain on investment in silver























14,781


























2,831







Change in unrealized (loss)/gain on investment in silver






















(

218,874




)























170,316







Change in unrealized (loss) on unsettled creations or redemptions

















































(

83




)




Creations











11,350,000














289,330














10,900,000














204,401







Redemptions










(

1,950,000




)










(

51,293




)










(

650,000




)










(

14,099




)




Closing balance











43,150,000










$





895,404














33,550,000










$





769,658













See Notes to the Financial Statements











4













ABERDEEN STANDARD SILVER ETF TRUST






Financial Highlights (Unaudited)



For the three and nine months ended September 30, 2021 and 2020


















































































































































































































































































































































































Three Months Ended


September 30, 2021













Three Months Ended


September 30, 2020













Nine Months Ended


September 30, 2021













Nine Months Ended


September 30, 2020










Per Share Performance (for a Share outstanding throughout the entire period)





















































Net asset value per Share at beginning of period







$





24.86










$





17.27










$





25.59










$





17.49









Income from investment operations:





















































Net investment loss










(

0.02




)










(

0.02




)










(

0.06




)










(

0.04




)




Total realized and unrealized gains or losses on investment in silver










(

4.09




)











5.69













(

4.78




)











5.49







Change in net assets from operations










(

4.11




)











5.67













(

4.84




)











5.45


























































Net asset value per Share at end of period







$





20.75










$





22.94










$





20.75










$





22.94


























Weighted average number of Shares












42,279,348














32,159,783














39,897,619














27,823,540






























































Expense ratio

(1)(2)















0.30




%











0.30




%











0.30




%











0.30




%



























































Net investment loss ratio

(1)(2)














(

0.30




)%










(

0.30




)%










(

0.30




)%










(

0.30




)%



























































Total return, net asset value

(3)














(

16.53




)%











32.83




%










(

18.91




)%











31.16




%




















(1)





Annualized for periods less than one year.




(2)





The expense ratio is calculated net of the voluntary waiver (refer to Note 2.7). The Gross Expense Ratio is


0.45


%.




(3)





Total return is not annualized.










See Notes to the Financial Statements











5













ABERDEEN STANDARD SILVER ETF TRUST






Notes to the Financial Statements (Unaudited)








1.

Organization







The Aberdeen Standard Silver ETF Trust (the “Trust”) is a common law trust formed on July 20, 2009 (the “Date of Inception”) under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by Aberdeen Standard Investments ETFs Sponsor LLC (the “Sponsor”) and The Bank of New York Mellon as Trustee (the “Trustee”). The Trust holds silver bullion and issues Aberdeen Standard Physical Silver Shares ETF (“Shares”) in minimum blocks of


50,000


Shares (also referred to as “Baskets”) in exchange for deposits of silver and distributes silver in connection with the redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of Aberdeen Standard Investments Inc. (“ASII”). ASII is a wholly-owned indirect subsidiary of abrdn (formerly known as Standard Life Aberdeen) plc. The Trust is governed by the Trust Agreement.





Effective June 25, 2021, Christopher Demetriou resigned as President and Chief Executive Officer of the Sponsor. Mr. Demetriou had served as Principal Executive Officer of the Registrant. Effective June 25, 2021, Steven Dunn was appointed President and Chief Executive Officer of the Sponsor. Mr. Dunn will serve as Principal Executive Officer of the Registrant.





The investment objective of the Trust is for the Shares to reflect the performance of the price of silver, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the silver market through an investment in securities. The fiscal year end for the Trust is December 31.





The accompanying financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q. In the opinion of the Trust’s management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the nine months ended September 30, 2021 and for all periods presented have been made.





These financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the operating results for the full year.









2.

Significant Accounting Policies







The preparation of financial statements in accordance with U.S. GAAP requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust.










2.1.

Basis of Accounting









The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946,

Financial Services—Investment Companies

, and has concluded that for reporting purposes, the Trust is classified as an Investment Company. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act.











2.2.

Valuation of Silver









The Trust follows the provisions of ASC 820,

Fair Value Measurement

(“ASC 820”). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.













6

















ABERDEEN STANDARD SILVER ETF TRUST










Notes to the Financial Statements (Unaudited)








The Trust’s silver is held by JPMorgan Chase Bank, N.A. (the “Custodian”). The Trust’s silver may also be held by another firm selected by the Custodian to hold the Trust’s silver in the Trust’s allocated account in the firm’s vault premises on a segregated basis and whose appointment has been approved by the Sponsor. At September 30, 2021, approximately


99.99


% of the Trust’s silver was held by a sub-custodian.





The Trust’s silver is recorded at fair value. The cost of silver is determined according to the average cost method and the fair value is based on the London Bullion Market Association (“LBMA”) Silver Price. Realized gains and losses on transfers of silver, or silver distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair value and average cost of silver transferred.





The ICE Benchmark Administration (“IBA”) conducts an electronic, over-the-counter silver auction in London, England to establish a fixing price for an ounce of silver once each trading day, which is disseminated by major market vendors (the “LBMA Silver Price”). The LBMA Silver Price is established by the LBMA-authorized bullion banks and market makers participating in the auction.





Once the value of silver has been determined, the net asset value (the “NAV”) is computed by the Trustee by deducting all accrued fees, expenses and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the silver and all other assets held by the Trust.





The Trust recognizes changes in fair value of the investment in silver as changes in unrealized gains or losses on investment in silver through the Statement of Operations.





The per Share amount of silver exchanged for a purchase or redemption is calculated daily by the Trustee using the LBMA Silver Price to calculate the silver amount in respect of any liabilities for which covering silver sales have not yet been made, and represents the per Share amount of silver held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred.







Fair Value Hierarchy






ASC 820 establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:





– Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.





– Level 2. Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data.





– Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Trust’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.





To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.













7
















ABERDEEN STANDARD SILVER ETF TRUST









Notes to the Financial Statements (Unaudited)








The inputs used to measure fair value may fall into different
levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which
the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair
value measurement in its entirety.





The Trust’s investment in silver is classified as
a level 1 asset, as its value is calculated using unadjusted quoted prices from primary market sources.






The categorization of the Trust’s assets is as shown below:
































































(Amounts in 000’s of US$)


September 30, 2021



December 31, 2020









Level 1









Investment in silver


$


895,623




$


863,884







There were no transfers between levels during the nine months ended September 30, 2021.


















2.3.






Silver Receivable and Payable







Silver receivable or payable represents the quantity of silver
covered by contractually binding orders for the creation or redemption of Shares respectively, where the silver has not yet
been transferred to or from the Trust’s account. Generally, ownership of silver is transferred within two business days of
the trade date. At September 30, 2021, the Trust had




no




silver receivable or payable for the creation or redemption
of Shares. At December 31, 2020, the Trust had




no




silver receivable or payable for the creation or redemption of
Shares.


















2.4.






Creations and Redemptions of Shares







The Trust expects to create and redeem Shares from time to time,
but only in one or more Baskets (a Basket equals a block of


50,000


Shares). The Trust issues Shares in Baskets to Authorized
Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust.
An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank
or other financial institution which is not required to register as a broker-dealer to engage in securities transactions; (2) is
a participant in The Depository Trust Company; (3) has entered into an Authorized Participant Agreement with the Trustee and the
Sponsor; and (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian or other silver
bullion clearing bank. An Authorized Participant Agreement is an agreement entered into by each Authorized Participant, the Sponsor
and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the silver required
for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated silver account established
with the Custodian or a silver bullion clearing bank by an Authorized Participant.





The creation and redemption of Baskets is only made in exchange
for the delivery to the Trust or the distribution by the Trust of the amount of silver represented by the Baskets being created
or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or
redeemed determined on the day the order to create or redeem Baskets is properly received.









8
















ABERDEEN STANDARD SILVER ETF TRUST









Notes to the Financial Statements (Unaudited)








Authorized Participants may, on any business day, place an order
with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is two business days. In the
event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded.
When silver is exchanged in settlement of a redemption, it is considered a sale of silver for financial statement purposes.





The amount of silver represented by the Baskets created
or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption
of Shares may differ from the value of silver to be delivered or distributed by the Trust. In order to ensure that the
correct amount of silver is available at all times to back the Shares, the Sponsor accepts an adjustment to its management
fees in the event of any shortfall or excess on each transaction. For each transaction, this amount is not more than 1/1000th of
an ounce of silver.





As the Shares of the Trust are subject to redemption at the
option of Authorized Participants, the Trust has classified the outstanding Shares as Net Assets. Changes in the number of Shares
outstanding are presented in the Statement of Changes in Net Assets.


















2.5.






Income Taxes







The Trust is classified as a “grantor trust” for
U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s
income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds,
income, deductions, gains, and losses to the Internal Revenue Service on that basis.





The Sponsor has evaluated whether or not there are uncertain
tax positions that require financial statement recognition and has determined that




no




reserves for uncertain tax positions are
required as of September 30, 2021 or December 31, 2020.


















2.6.






Investment in Silver








Changes in ounces of silver and their respective values
for the three and nine months ended September 30, 2021 and 2020 are set out below:






























































































































































































































Three Months Ended


September 30, 2021



Three Months Ended


September 30, 2020


(Amounts in 000’s of US$, except for ounces data)









Ounces of silver









Opening balance




40,482,046.3






28,166,118.8



Creations




1,398,270.1






4,788,781.5



Redemptions



(

241,192.7


)



(

483,699.9


)

Transfers of silver to pay expenses



(

30,599.4


)



(

22,399.5


)

Closing balance




41,608,524.3






32,448,800.9












Investment in silver









Opening balance


$


1,043,020




$


502,624



Creations




33,689






116,059



Redemptions



(

6,214


)



(

11,720


)

Realized gain on silver distributed for the redemption of Shares




0






3,029



Transfers of silver to pay expenses



(

783


)



(

489


)

Realized gain on silver transferred to pay expenses




153






84



Change in unrealized (loss) / gain on investment in silver



(

174,242


)




160,261



Closing balance


$


895,623




$


769,848










9
















ABERDEEN STANDARD SILVER ETF TRUST









Notes to the Financial Statements (Unaudited)



































































































































































































































Nine Months Ended


September 30, 2021



Nine Months Ended


September 30, 2020


(Amounts in 000’s of US$, except for ounces data)









Ounces of silver









Opening balance




32,617,862.0






23,216,266.6



Creations




10,958,408.9






10,549,850.1



Redemptions



(

1,883,175.0


)



(

1,258,891.3


)

Transfers of silver to pay expenses



(

84,571.6


)



(

58,424.5


)

Closing balance




41,608,524.3






32,448,800.9












Investment in silver









Opening balance


$


863,884




$


418,938



Creations




289,330






204,401



Redemptions



(

51,293


)



(

25,548


)

Realized gain on silver distributed for the redemption of Shares




14,272






2,793



Transfers of silver to pay expenses



(

2,205


)



(

1,090


)

Realized gain on silver transferred to pay expenses




509






38



Change in unrealized (loss) / gain on investment in silver



(

218,874


)




170,316



Closing balance


$


895,623




$


769,848






















2.7.






Expenses / Realized Gains / Losses







The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of silver to
the Sponsor.





The Trust will transfer silver to the Sponsor to pay the
Sponsor’s Fee that accrues daily at an annualized rate equal to


0.45


% of the adjusted daily net asset value (“ANAV”)
of the Trust, paid monthly in arrears.  Presently, the Sponsor is continuing to voluntarily waive a portion of its fee and
reduce the Sponsor’s Fee to


0.30


% (which it has done since the Date of Inception).





The Sponsor has agreed to assume administrative and marketing
expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee
and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission
(the “SEC”) registration fees, printing and mailing costs, audit fees and up to $


100,000


per annum in legal expenses.





For the three months ended September 30, 2021 and
2020, the Sponsor’s Fee, net of fees waived by the Sponsor, was $


745,792


and $


555,114


, respectively.  For
the nine months ended September 30, 2021 and 2020, the Sponsor’s Fee, net of fees waived by the Sponsor, was $


2,203,679


and $


1,172,012


, respectively.









10
















ABERDEEN STANDARD SILVER ETF TRUST









Notes to the Financial Statements (Unaudited)








At September 30, 2021 and at December 31, 2020, the
fees payable to the Sponsor were $


219,154


and $


219,813


, respectively.





As a result of the waiver, the Sponsor’s Fee waived for
the three months ended September 30, 2021 and 2020 was $


372,896


and $


277,557


, respectively. The Sponsor’s Fee
waived for the nine months ended September 30, 2021, and 2020 was $


1,101,839


and $


586,006


, respectively.





With respect to expenses not otherwise assumed by the
Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s silver as necessary
to pay these expenses. When selling silver to pay expenses, the Trustee will endeavor to sell the smallest amounts of silver
needed to pay these expenses in order to minimize the Trust’s holdings of assets other than silver. Other than the Sponsor’s
Fee, the Trust had








no








expenses during the three and nine months ended September 30, 2021 and 2020.





Unless otherwise directed by the Sponsor, when selling silver
the Trustee will endeavor to sell at the price established by the LBMA. The Trustee will place orders with dealers (which
may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian
may be the purchaser of such silver only if the sale transaction is made at the next LBMA Silver Price or such other publicly
available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on
the difference between the selling price and the average cost of the silver sold. Neither the Trustee nor the Sponsor is liable
for depreciation or loss incurred by reason of any sale.





Realized gains and losses result from the transfer of silver
for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value
and average cost of silver transferred.


















2.8.






Subsequent Events







In accordance with the provisions set forth in FASB ASC 855-10,

Subsequent Events

, the Trust’s management has evaluated the possibility of subsequent events impacting the Trust’s
financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure
in the financial statements were identified.




















3.




Related Parties






The Sponsor and the Trustee are considered to be related parties
to the Trust. The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase
or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.
In addition, the Trustee and the Custodian and their affiliates may from time to time purchase or sell silver directly, for
their own account, as agent for their customers and for accounts over which they exercise investment discretion. The Trustee’s
and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust.

















4.




Concentration of Risk






The Trust’s sole business activity is the investment in silver,
and substantially all the Trust’s assets are holdings of silver, which creates a concentration of risk associated with
fluctuations in the price of silver. Several factors could affect the price of silver, including: (i) global silver supply and
demand, which is influenced by factors such as forward selling by silver producers, purchases made by silver producers to unwind
silver hedge positions, central bank purchases and sales, and production and cost levels in major global silver-producing countries;
(ii) investors’ expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v)
investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial
events and situations. In addition, there is no assurance that silver will maintain its long-term value in terms of purchasing
power in the future. In the event that the price of silver declines, the Sponsor expects the value of an investment in the
Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and
results of operations.









11












ABERDEEN STANDARD SILVER ETF TRUST





Notes to the Financial Statements (Unaudited)














5.




Indemnification






Under the Trust’s organizational documents, the Trustee
(and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates)
are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith, willful misconduct
or willful malfeasance on its part and without reckless disregard on its part of its obligations and duties under the Trust’s
organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims
that may be made against the Trust that have not yet occurred.









12












ABERDEEN STANDARD SILVER ETF TRUST








Item 2. Management’s Discussion and Analysis of Financial
Condition and Results of Operations




This information should be read in conjunction with the financial
statements and notes to the financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that
follows may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and within the Private Securities Litigation Reform Act of 1995,
as amended. These forward-looking statements may relate to the Trust’s financial condition, operations, future performance
and business. These statements can be identified by the use of the words “may”, “should”, “expect”,
“plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”
or similar words and phrases. These statements are based upon certain assumptions and analyses the Sponsor has made based on its
perception of historical trends, current conditions and expected future developments. 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.







Introduction




The Trust is a common law trust, formed under the laws of the
state of New York on July 20, 2009. The Trust is not managed like a corporation or an active investment vehicle. It does not
have any officers, directors, or employees and is administered by the Trustee pursuant to the Trust Agreement. The Trust is not
registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. It
does not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool
operator or a commodity trading adviser in connection with issuing Shares.





The Trust holds silver and is expected to issue Baskets
in exchange for deposits of silver and to distribute silver in connection with redemptions of Baskets. Shares issued
by the Trust represent units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust
is for the Shares to reflect the performance of the price of silver, less the Trust’s expenses. The Sponsor believes
that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in silver.





The Trust issues and redeems Shares only with Authorized Participants
in exchange for silver and only in aggregations of 50,000 Shares or integral multiples thereof. A list of current Authorized
Participants is available from the Sponsor or the Trustee.





Shares of the Trust trade on the New York Stock Exchange (the
“NYSE”) Arca under the symbol “SIVR”.







Valuation of Silver and Computation of Net Asset
Value




On each day that the NYSE Arca is open for regular trading,
as promptly as practicable after 4:00 p.m. New York time on such day (the “Evaluation Time”), the Trustee evaluates
the silver held by the Trust and determine both the ANAV and the NAV of the Trust.





At the Evaluation Time, the Trustee values the
Trust’s silver on the basis of that day’s LBMA Silver Price (the daily price of an ounce of silver as set at approximately
12:00 noon London, England time by LBMA-authorized bullion banks or market makers in an electronic, over-the-counter auction conducted
by the ICE Benchmark Administration (“IBA”) and disseminated by major market vendors, or, if no LBMA Silver Price is
made on such day or has not been announced by the Evaluation Time, the next most recent LBMA Silver Price determined prior to the
Evaluation Time is used, unless the Sponsor determines that such price is inappropriate as a basis for evaluation. In the event
the Sponsor determines that the LBMA Silver Price or such other publicly available price as the Sponsor may deem fairly represents
the commercial value of the Trust’s silver is not an appropriate basis for evaluation of the Trust’s silver, it shall
identify an alternative basis for such evaluation to be employed by the Trustee.





Once the value of the silver has been determined, the Trustee
subtracts all estimated accrued but unpaid fees. (other than the fees accruing for such day on which the valuation takes place
that are computed by reference to the value of the Trust or its assets), expenses and other liabilities of the Trust from the total
value of the silver and all other assets of the Trust (other than any amounts credited to the Trust’s reserve account, if established).
The resulting figure is the adjusted net asset value (the “ANAV”) of the Trust. The ANAV of the Trust is used to compute
the Sponsor’s Fee.








13












All fees accruing for the day on which the valuation
takes place that are computed by reference to the value of the Trust or its assets are calculated using the ANAV calculated for
such day. The Trustee subtracts from the ANAV the amount of the accrued fees so computed for such day and the resulting figure
is the NAV of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of Shares
outstanding as of the close of trading on the NYSE Arca (which includes the net number of any Shares created or redeemed on such
evaluation day).






The Trustee’s estimation of accrued but unpaid fees, expenses and liabilities is conclusive upon all persons interested in the Trust and no revision or correction in any computation made under the Trust Agreement will be required by reason of any difference in amounts estimated from those actually paid.






The NAV of the Trust is obtained by subtracting the Trust’s liabilities on any day from the value of the silver owned and receivable by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.










The Quarter Ended







September 30, 2021









The Trust’s NAV decreased from $1,036,550,164 at June 30, 2021 to $895,404,332 at September 30, 2021, a 13.62% decrease for the quarter. The decrease in the Trust’s NAV resulted primarily from a decrease in the price per ounce of silver, which fell 16.45% from $25.77 at June 30, 2021 to $21.53 at September 30, 2021. There was an increase in outstanding Shares, which rose from 41,700,000 Shares at June 30, 2021 to 43,150,000 Shares at September 30, 2021, as a result of 1,450,000 Shares (29 Baskets) being created and  no Shares being redeemed during the quarter.






The NAV per Share decreased 16.53% from $24.86 at June 30, 2021 to $20.75 at September 30, 2021. The Trust’s NAV per Share fell slightly more than the price per ounce of silver on a percentage basis due to the Sponsor’s Fee, net of waiver, which was $745,792 for the quarter, or 0.30% of the Trust’s ANAV on an annualized basis.






The NAV per Share of $25.67 at July 6, 2021 was the highest during the quarter, compared with a low of $20.75 at September 30, 2021.






The decrease in net assets from operations for the quarter ended September 30, 2021 was $174,834,793 resulting from a realized gain of $152,775 on the transfer of silver to pay expenses, offset by a change in unrealized loss on investment in silver of $174,241,776, offset by the Sponsor’s Fee, net of waiver, of $745,792. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended September 30, 2021.










The Nine Months









Ended






September 30, 2021








The Trust’s NAV increased from $863,664,235 at December 31, 2020 to $895,404,332 at September 30, 2021, a 3.68% increase for the period. The increase in the Trust’s NAV resulted primarily from an increase in outstanding Shares, which rose from 33,750,000 Shares at December 31, 2020 to 43,150,000 Shares at September 30, 2021, as a result of 11,350,000 Shares (227 Baskets) being created and 1,950,000 Shares (39 Baskets) being redeemed during the period. The price per ounce of silver fell 18.72% from $26.49 at December 31, 2020 to $21.53 at September 30, 2021.





The NAV per Share decreased 18.91% from $25.59 at December 31, 2020 to $20.75 at September 30, 2021. The Trust’s NAV per Share fell slightly more than the price per ounce of silver on a percentage basis due to the Sponsor’s Fee, net of waiver, which was $2,203,679 for the period, or 0.30% of the Trust’s ANAV on an annualized basis.





The NAV per Share of $28.58 at February 1, 2021 was the highest during the period, compared with a low of $20.75 at September 30, 2021.





The decrease in net assets from operations
for the period ended September 30, 2021 was $206,296,336 resulting from a realized gain of $509,277 on the transfer of silver
to pay expenses and a realized gain of $14,271,606 on silver distributed for the redemption of Shares, offset by a change in unrealized
loss on investment in silver of $218,873,540 and the Sponsor’s Fee, net of waiver, of $2,203,679. Other than the Sponsor’s
Fee, the Trust had no expenses during the period ended September 30, 2021.








14















Liquidity & Capital Resources






The Trust is not aware of any trends, demands, commitments, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee.





The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s silver as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell silver to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of silver to the Sponsor. At September 30, 2021, the Trust did not have any cash balances.









Off-Balance Sheet Arrangements






The Trust has no off-balance sheet arrangements.









Critical Accounting Policies






The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Refer to Note 2 to the Financial Statements for further information on accounting policies.







Item 3. Quantitative and Qu


alitative Disclosures About Market Risk




Not applicable.







Item 4. Controls and Pr


ocedures




The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer of the Sponsor, and to the audit committee, as appropriate, to allow timely decisions regarding required disclosure.





Under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust’s disclosure controls and procedures, as defined under Exchange Act Rules 13a-15(e) and 15d-15(e). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer of the Sponsor concluded that, as of September 30, 2021, the Trust’s disclosure controls and procedures were effective.





There have been no changes in the Trust’s
or Sponsor’s internal control over financial reporting during the quarter ended September 30, 2021 that have materially
affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial
reporting.








15















PART II. OTHER INFORMATION








Item 1. Legal Proceedi


ngs




None.







Item 1A. Risk Facto


rs




Except for the risk factor set forth below, there have been no material changes to the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.







Effects of COVID-19




The COVID-19 pandemic has caused major disruptions to economies and markets around the world, including the markets in which the Trust
invests, and which has and may continue to negatively impact the value of certain of the Trust’s investments. Although vaccines
for COVID-19 and variants thereof are becoming more widely available, the COVID-19 pandemic and impacts thereof may continue for an extended
period of time and may vary from market to market. To the extent the impacts of COVID-19 continue, the Trust may experience negative impacts
to its business that could exacerbate other risks to which the Trust is subject. Policy and legislative changes in countries around the
world are affecting many aspects of financial regulation, and governmental and quasi-governmental authorities and regulators throughout
the world have previously responded to serious economic disruptions with a variety of significant fiscal and monetary policy changes.








Item 2. Unregistered Sales of Equity Securities an


d Use of Proceeds








Item 2(a).




None.






Item 2(b).




Not applicable.






Item 2(c).




For the three months ended September 30, 2021:




29 Baskets were created.




0 Baskets were redeemed.






















































Period














Total Baskets






Redeemed














Total Shares Redeemed













Average ounces of




silver


per Share




July 2021

























August 2021

























September 2021






















































Item 3. Defaults Upon Senior Secu


rities






None.








Item 4. Mine Safety Disclos


ures






Not applicable.








Item 5. Other Informa


tion






None.








16














Item 6. Exhib


its






















































31.1






Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.






31.2






Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.






32.1






Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.






32.2






Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.






101





The
following financial statements from the Trust’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2021, formatted in Inline XBRL: (i) Statements of Assets and
Liabilities, (ii) Statements of Operations, (iii) Statements of Changes in Net Assets, and
(iv) Notes to the Financial Statements.





101.SCH





Inline
XBRL Taxonomy Extension Schema Document





101.CAL





Inline
XBRL Taxonomy Extension Calculation Document





101.DEF





Inline
XBRL Taxonomy Extension Definitions Document





101.LAB





Inline
XBRL Taxonomy Extension Labels Document





101.PRE





Inline
XBRL Taxonomy Extension Presentation Document





104





The
cover page from the Trust’s Quarterly Report on Form 10-Q for the quarter ended September
30, 2021, formatted in Inline XBRL (included as Exhibit 101).









17













ABERDEEN STANDARD SILVER ETF TRUST









SIGN


ATURES








Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities thereunto duly authorized.























































ABERDEEN STANDARD INVESTMENTS ETFS SPONSOR LLC















Date: November 5, 2021





/s/ Steven Dunn








Steven Dunn *








President and Chief Executive Officer








(Principal Executive Officer)











Date: November 5, 2021





/s/ Andrea Melia








Andrea Melia *








Chief Financial Officer and Treasurer








(Principal Financial Officer and Principal Accounting Officer)













*





The Registrant is a trust and the persons are signing in their capacities as officers of Aberdeen Standard Investments ETFs Sponsor LLC, the Sponsor of the Registrant.









18




The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Annual report [Section 13 and 15(d), not S-K Item 405] - Sept. 29, 2022

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