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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


March 31, 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:


001-34589


























ABERDEEN STANDARD PALLADIUM ETF TRUST









(Exact
name of registrant as specified in its charter)






















New York












26-4733157








(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 Palladium Shares ETF










PALL










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 May
5, 2021, Aberdeen Standard Palladium ETF Trust had


1,750,000


Aberdeen Standard Physical Palladium Shares ETF outstanding.





































ABERDEEN
STANDARD Palladium ETF TRUST










FORM
10-Q










FOR
THE QUARTER ENDED MARCH 31, 2021










INDEX






































































































































PART
I. FINANCIAL INFORMATION







1

















Item
1.









Financial
Statements







1















Item
2.









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







12















Item
3.









Quantitative
and Qualitative Disclosures About Market Risk







14















Item
4.









Controls
and Procedures







14















PART
II. OTHER INFORMATION







15

















Item
1.









Legal
Proceedings







15















Item
1A.









Risk
Factors







15















Item
2.









Unregistered
Sales of Equity Securities and Use of Proceeds







15















Item
3.









Defaults
Upon Senior Securities







15















Item
4.









Mine
Safety Disclosures







15















Item
5.









Other
Information







15















Item
6.









Exhibits







16


















SIGNATURES














17






























ABERDEEN
STANDARD PALLADIUM ETF TRUST












PART
I. FINANCIAL INFORMATION












Item
1. Financial Statements









Statements
of Assets and Liabilities




At
March 31, 2021 (Unaudited) and December 31, 2020

































































































































March 31,


2021



December 31,


2020


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









ASSETS









Investment in palladium (cost: March 31, 2021: $


238,049


; December 31, 2020: $


224,166


)


$


405,039




$


356,424



Total assets




405,039






356,424












LIABILITIES









Fees payable to Sponsor




212






186



Total liabilities




212






186














NET ASSETS

(1)





$


404,827




$


356,238












(1)




Authorized
share capital is




unlimited




with




no




par value per Share. Shares issued and outstanding at March 31, 2021 were




1,650,000




and
at December 31, 2020 were




1,625,000




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


245.35


and $


219.22


,
respectively.









See
Notes to the Financial Statements












1















ABERDEEN
STANDARD PALLADIUM ETF TRUST









Schedules
of Investments




At
March 31, 2021 (Unaudited) and December 31, 2020














































































































March 31, 2021


Description


oz



Cost



Fair Value



% of Net Assets




Investment in palladium


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



Palladium




154,300.3




$


238,049




$


405,039






100.05


%

Total investment in palladium




154,300.3




$


238,049




$


405,039






100.05


%

Less liabilities











(

212


)



(

0.05


)%

Net Assets










$


404,827






100.00


%











































































































December 31, 2020


Description


oz



Cost



Fair Value



% of Net Assets




Investment in palladium


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



Palladium




152,187.5




$


224,166




$


356,424






100.05


%

Total investment in palladium




152,187.5




$


224,166




$


356,424






100.05


%

Less liabilities











(

186


)



(

0.05


)%

Net Assets










$


356,238






100.00


%







See
Notes to the Financial Statements
















2















ABERDEEN
STANDARD PALLADIUM ETF TRUST









Statements
of Operations (Unaudited)




For
the three months ended March 31, 2021 and 2020

























































































































































































































Three Months Ended


March 31, 2021



Three Months Ended


March 31, 2020


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









EXPENSES









Sponsor’s Fee


$


563




$


548



Total expenses




563






548












Net investment loss



(

563


)



(

548


)










REALIZED AND UNREALIZED GAINS / (LOSSES)









Realized gain on palladium transferred to pay expenses




199






258



Realized gain on palladium distributed for the redemption of Shares




9,510






39,238



Change in unrealized gain on investment in palladium




34,733






8,711



Total gain on investment in palladium




44,442






48,207












Change in net assets from operations


$


43,879




$


47,659












Net increase in net assets per Share


$


26.57




$


28.84












Weighted average number of Shares




1,651,389






1,652,473









See
Notes to the Financial Statements












3















ABERDEEN
STANDARD PALLADIUM ETF TRUST









Statements
of Changes in Net Assets (Unaudited)




For
the three months ended March 31, 2021 and 2020






































































































Three Months Ended


March 31, 2021


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


Shares



Amount


Opening balance at January 1, 2021




1,625,000




$


356,238



Net investment loss







(

563


)

Realized gain on investment in palladium








9,709



Change in unrealized gain on investment in palladium








34,733



Creations




125,000






28,524



Redemptions



(

100,000


)



(

23,814


)

Closing balance at March 31, 2021




1,650,000




$


404,827





































































































Three Months Ended


March 31, 2020


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


Shares



Amount


Opening balance at January 1, 2020




1,675,000




$


300,485



Net investment loss







(

548


)

Realized gain on investment in palladium








39,496



Change in unrealized gain on investment in palladium








8,711



Creations




250,000






53,808



Redemptions



(

525,000


)



(

98,256


)

Closing balance at March 31, 2020




1,400,000




$


303,696









See
Notes to the Financial Statements












4















ABERDEEN
STANDARD PALLADIUM ETF TRUST









Financial
Highlights (Unaudited)




For
the three months ended March 31, 2021 and 2020



































































































































































































Three Months Ended


March 31, 2021



Three Months Ended


March 31, 2020


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









Net asset value per Share at beginning of period


$


219.22




$


179.39



Income from investment operations:









Net investment loss



(

0.34


)



(

0.33


)

Total realized and unrealized gains or losses on investment in palladium




26.47






37.87



Change in net assets from operations




26.13






37.54












Net asset value per Share at end of period


$


245.35




$


216.93












Weighted average number of Shares




1,651,389






1,652,473















Expense ratio

(1)








0.60


%




0.60


%













Net investment loss ratio

(1)







(

0.60


)%



(

0.60


)%













Total return, net asset value

(2)








11.92


%




20.93


%














(1)




Annualized
for periods less than one year.




(2)




Total
return is not annualized.









See
Notes to the Financial Statements












5






















ABERDEEN STANDARD PALLADIUM ETF TRUST





Notes to the Financial Statements (Unaudited)







1.

Organization






The Aberdeen Standard Palladium ETF Trust (the “Trust”)
is a common law trust formed on December 30, 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 palladium bullion and
issues Aberdeen Standard Physical Palladium Shares ETF (“Shares”) in minimum blocks of


25,000


Shares (also
referred to as “Baskets”) in exchange for deposits of palladium and distributes palladium 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 Standard Life Aberdeen plc. The Trust is governed
by the Trust Agreement.





The investment objective of the Trust is for the Shares to reflect
the performance of the price of palladium, 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 palladium
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 three
months ended March 31, 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
months ended March 31, 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 Palladium







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 PALLADIUM ETF TRUST









Notes to the Financial Statements (Unaudited)











2.2.    Valuation of Palladium

(continued)






Palladium is held by JPMorgan Chase Bank, N.A. (the “Custodian”),
on behalf of the Trust, at its London, England vaulting premises. Palladium may also be held by UBS AG, or any other firm selected
by the Custodian to hold the Trust’s palladium 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 March 31, 2021, approximately


74.80


% of the
Trust’s palladium was held by one or more sub-custodians.





Palladium is recorded at fair value. The cost of palladium is
determined according to the average cost method and the fair value is based on the afternoon session of the twice daily fix of
an ounce of palladium administered by the London Metal Exchange (“LME”) (the “LME PM Fix”). Realized
gains and losses on transfers of palladium, or palladium distributed for the redemption of Shares, are calculated on a trade date
basis as the difference between the fair value and average cost of palladium transferred.





The LME is responsible for the administration of the electronic palladium
price fixing system (“LMEbullion”) that replicates electronically the manual London palladium fix processes previously
employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”), as well as providing electronic market
clearing processes for palladium bullion transactions at the fixed prices established by the LME pricing mechanism. LMEbullion,
like the previous London palladium fix processes, establishes and publishes fixed prices for troy ounces of palladium twice each
London trading day during fixing sessions beginning at 9:45 a.m. London time (the” LME AM Fix”) and 2:00 p.m. London
time (the “LME PM Fix”).





Once the value of palladium 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 palladium
and all other assets held by the Trust.





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





The per Share amount of palladium exchanged for a purchase
or redemption is calculated daily by the Trustee using the LME PM Fix to calculate the palladium amount in respect of any
liabilities for which covering palladium sales have not yet been made, and represents the per Share amount of palladium
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.











7
















ABERDEEN STANDARD PALLADIUM ETF TRUST









Notes to the Financial Statements (Unaudited)











2.2.    Valuation of Palladium

(continued)






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.





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 palladium 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$)


March 31, 2021



December 31, 2020









Level 1









Investment in palladium


$


405,039




$


356,424









There were no transfers between levels during the three months
ended March 31, 2021.  The Trust’s palladium was transferred from Level 2 to Level 1 at December 31, 2020.











2.3.

Palladium Receivable and Payable







Palladium receivable or payable represents the quantity
of palladium covered by contractually binding orders for the creation or redemption of Shares respectively, where the palladium
has not yet been transferred to or from the Trust’s account. Generally, ownership of palladium is transferred within two
business days of the trade date. At March 31, 2021, the Trust had




no




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




no




palladium 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


25,000


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 palladium
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 palladium required
for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated palladium account, either
loco London or loco Zurich, established with the Custodian or a palladium bullion clearing bank by an Authorized Participant.











8
















ABERDEEN STANDARD PALLADIUM ETF TRUST









Notes to the Financial
Statements (Unaudited)











2.4.    Creations and Redemptions
of Shares

(continued)






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 palladium 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.





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 palladium is exchanged in settlement of a redemption, it is considered a sale of palladium for financial statement
purposes.





The amount of palladium 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 palladium to be delivered or distributed by the Trust. In order to ensure that
the correct amount of palladium 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 palladium.





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 March 31, 2021 and December 31, 2020.









2.6.

Investment in Palladium








Changes in ounces of palladium and their respective values
for the three months ended March 31, 2021 and 2020 are set out below:









































































































Three Months Ended


March 31, 2021



Three Months Ended


March 31, 2020


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









Ounces of palladium









Opening balance




152,187.5






157,815.0



Creations




11,688.4






23,524.8



Redemptions



(

9,348.2


)



(

49,385.6


)

Transfers of palladium to pay expenses



(

227.4


)



(

239.7


)

Closing balance




154,300.3






131,714.5





















9
















ABERDEEN STANDARD PALLADIUM ETF TRUST









Notes to the Financial Statements (Unaudited)





















































































































Three Months Ended


March 31, 2021



Three Months Ended


March 31, 2020


Investment in palladium









Opening balance


$


356,424




$


300,638



Creations




28,524






53,808



Redemptions



(

23,814


)



(

98,257


)

Realized gain on palladium distributed for the redemption of Shares




9,510






39,238



Transfers of palladium to pay expenses



(

537


)



(

531


)

Realized gain on palladium transferred to pay expenses




199






258



Change in unrealized gain on investment in palladium




34,733






8,711



Closing balance


$


405,039




$


303,865













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 palladium
to the Sponsor.








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


0.60


% of the adjusted daily net asset value (“ANAV”)
of the Trust, paid monthly in arrears.





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 March 31, 2021 and
2020, the Sponsor’s Fee was $


562,747


and $


547,590


, respectively.





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


212,429


and $


185,515


, 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 palladium as necessary
to pay these expenses. When selling palladium to pay expenses, the Trustee will endeavor to sell the smallest amounts of palladium
needed to pay these expenses in order to minimize the Trust’s holdings of assets other than palladium. Other than the
Sponsor’s Fee, the Trust had




no




expenses during the three months ended March 31, 2021 and 2020.





Unless otherwise directed by the Sponsor, when selling palladium
the Trustee will endeavor to sell at the price established by the LME PM Fix. 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 palladium only if the sale transaction is made at the next LME PM Fix 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 palladium 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 palladium
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 palladium transferred.











10
















ABERDEEN STANDARD PALLADIUM ETF TRUST









Notes to the Financial
Statements (Unaudited)










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 palladium 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 palladium,
and substantially all the Trust’s assets are holdings of palladium, which creates a concentration of risk associated
with fluctuations in the price of palladium. Several factors could affect the price of palladium, including: (i) global palladium
supply and demand, which is influenced by factors such as production and cost levels in major palladium-producing countries, recycling,
autocatalyst demand, industrial demand, jewelry demand, investment demand, and sales of existing stockpiles of palladium, which
have been a key source of supply and are likely to be exhausted soon, placing a higher burden on new mine supply; (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 palladium will maintain its long-term value in terms of purchasing power in the future.
In the event that the price of palladium 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.








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.











11























ABERDEEN
STANDARD PALLADIUM 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 December 30, 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 palladium and is expected to issue Baskets in exchange for deposits of palladium and to distribute palladium
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 palladium,
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 palladium.








The
Trust issues and redeems Shares only with Authorized Participants in exchange for palladium and only in aggregations of 25,000
Shares. 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 “PALL”.










Valuation
of Palladium 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 palladium held by the Trust and determines the NAV of the
Trust.








At
the Evaluation Time, the Trustee values the Trust’s palladium on the basis of that day’s LME PM Fix or, if no LME
PM Fix is made on such day, the next most recent LME PM Fix determined prior to the Evaluation Time will be used, unless the Sponsor
determines that such price is inappropriate as a basis for evaluation. In the event the Sponsor determines that the LME PM Fix
or such other publicly available price as the Sponsor may deem fairly represents the commercial value of the Trust’s palladium
is not an appropriate basis for evaluation of the Trust’s palladium, it shall identify an alternative basis for such evaluation
to be employed by the Trustee. Neither the Trustee nor the Sponsor shall be liable to any person for the determination that the
LME PM Fix or such other publicly available price is not appropriate as a basis for evaluation of the Trust’s palladium
or for any determination as to the alternative basis for such evaluation provided that such determination is made in good faith.








Once
the value of the palladium 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 palladium 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.














12














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 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 the 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 palladium 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 March 31, 2021










The
Trust’s NAV increased from $356,238,300 at December 31, 2020 to $404,826,709 at March 31, 2021, a 13.64% increase for the
quarter. The increase in the Trust’s NAV resulted primarily from an increase in the price per ounce of palladium, which
rose 12.08% from $2,342.00 at December 31, 2020 to $2,625.00 at March 31, 2021 and an increase in outstanding Shares, which rose
from 1,625,000 Shares at December 31, 2020 to 1,650,000 Shares at March 31, 2021, as a result of 125,000 Shares (5 Baskets) being
created and 100,000 Shares (4 Baskets) being redeemed.








The
NAV per Share increased 11.92% from $219.22 at December 31, 2020 to $245.35 at March 31, 2021. The Trust’s NAV per Share
rose slightly less than the price per ounce of palladium on a percentage basis due to the Sponsor’s Fee, which was $562,747
for the quarter, or 0.60% of the Trust’s ANAV on an annualized basis.








The
NAV per Share of $250.36 at March 18, 2021 was the highest during the quarter, compared with a low of $211.24 at February 4, 2021.








The
increase in net assets from operations for the quarter ended March 31, 2021 was $43,878,521, resulting from a realized gain of
$198,752 on the transfer of palladium to pay expenses, a realized gain of $9,509,812 on palladium distributed for the redemption
of Shares, and a change in unrealized gain on investment in palladium of $34,732,704, and the Sponsor’s Fee of $562,747.
Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2021.










The
Quarter Ended March 31, 2020










The
Trust’s NAV increased from $300,485,250 at December 31, 2019 to $303,695,978 at March 31, 2020, a 1.07% increase for the
quarter. The increase in the Trust’s NAV resulted primarily from an increase in the price per ounce of palladium, which
rose 21.10% from $1,905.00 at December 31, 2019 to $2,307.00 at March 31, 2020, and a decrease in outstanding Shares, which fell
from 1,675,000 at December 31, 2019 to 1,400,000 at March 31, 2020 as a result of 525,000 Shares (21 Baskets) being redeemed and
250,000 Shares (10 Baskets) being created during the quarter.








The
NAV per Share increased 20.93% from $179.39 at December 31, 2019 to $216.93 at March 31, 2020. The Trust’s NAV per Share
rose slightly less than the price per ounce of palladium on a percentage basis due to the Sponsor’s Fee, which was $547,590
for the quarter, or 0.60% of the Trust’s ANAV on an annualized basis.








The
NAV per Share of $261.67 at February 19, 2020 was the highest during the quarter, compared with a low of $146.44 at March 16,
2020.














13














The
increase in net assets from operations for the quarter ended March 31, 2020 was $47,659,193, resulting from a realized gain of
$257,600 on the transfer of palladium to pay expenses, a realized gain of $39,238,246 on palladium distributed for the redemption
of Shares, and a change in unrealized gain on investment in palladium of $8,710,937, offset by the Sponsor’s Fee of $547,590.
Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2020.










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 palladium as necessary
to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell palladium to pay the Sponsor’s
Fee but will pay the Sponsor’s Fee through in-kind transfers of palladium to the Sponsor. At March 31, 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 Qualitative Disclosures About Market Risk





Not
applicable.











Item
4. Controls and Procedures





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 March 31, 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 March
31, 2021 that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal
control over financial reporting.














14

















PART
II. OTHER INFORMATION












Item
1. Legal Proceedings





None.











Item
1A. Risk Factors





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
respiratory illness COVID-19 caused by a novel coronavirus has resulted in a global pandemic and major disruption to economies
and markets around the world, including the United States. Financial markets have experienced extreme volatility and trading in
many instruments has been disrupted. Liquidity for many instruments has been greatly reduced for periods of time. Some interest
rates are very low and in some cases yields are negative. Some sectors of the economy and individual issuers have experienced
particularly large losses. These circumstances may continue for an extended period of time, and may continue to affect adversely
the value and liquidity of the Trust’s investments. The ultimate economic fallout from the pandemic, and the long-term impact
on economies, markets, industries and individual issuers, including Shares of the Trust, are not known. The information technology
and other operational systems upon which the Trust’s service providers rely could be impaired and the ability of employees
of the Trust’s service providers to perform essential tasks on behalf of the Trust could be disrupted. Governments and central
banks, including the Federal Reserve in the U.S., have taken extraordinary and unprecedented actions to support local and global
economies and the financial markets. The impact of these measures, and whether they will be effective to mitigate the economic
and market disruption, will not be known for some time.











Item
2. Unregistered Sales of Equity Securities and Use of Proceeds






Item
2(a).

None.





Item
2(b).

Not applicable.





Item
2(c).

For the three months ended March 31, 2021:




5
Baskets were created.




4
Baskets were redeemed.























































Period









Total
Baskets










Redeemed













Total
Shares Redeemed








Average
ounces of palladium per Share




January
2021






-






-






-



February
2021






-






-






-



March
2021






4






100,000






0.093









4






100,000






0.093









Item
3. Defaults Upon Senior Securities





None.











Item
4. Mine Safety Disclosures





Not
applicable.











Item
5. Other Information





None.












15















Item
6. Exhibits






















































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 March 31, 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 March 31, 2021, formatted in Inline
XBRL (included as Exhibit 101).










16













ABERDEEN
STANDARD PALLADIUM ETF TRUST












SIGNATURES









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:
May 7, 2021



/s/
Christopher Demetriou






Christopher
Demetriou *






President
and Chief Executive Officer






(Principal
Executive Officer)









Date:
May 7, 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.










17




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

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Quarterly report [Sections 13 or 15(d)] - Aug. 5, 2022

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