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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


June 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:


001-34589







____________________











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 August 4, 2021, Aberdeen Standard Palladium ETF Trust had


1,875,000


Aberdeen Standard Physical Palladium Shares ETF outstanding.



































ABERDEEN
STANDARD PALLADIUM ETF TRUST










FORM
10-Q










FOR
THE QUARTER ENDED JUNE 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 PALLADIUM
ETF TRUST










PART
I. FINANCIAL INFORMATION










Item
1. Financial Statements






Statements of Assets and Liabilities



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










































































































































June 30,
2021



December
31, 2020


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









ASSETS









Investment in palladium (cost: June 30, 2021: $


317,018


;
December 31, 2020: $


224,166


)


$


492,870




$


356,424



Palladium receivable




12,632










Total assets




505,502






356,424












LIABILITIES









Fees payable to Sponsor




233






186



Total liabilities




233






186















NET ASSETS

(1)






$


505,269




$


356,238












(1)





Authorized share capital
is




unlimited




with




no




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




2,000,000




and at December 31, 2020 were




1,625,000




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


252.63


and $


219.22


,
respectively.










See Notes to
the Financial Statements











1













ABERDEEN STANDARD PALLADIUM
ETF TRUST






Schedules of Investments



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

















































































































June 30, 2021



Description


oz



Cost



Fair Value



% of Net Assets



Investment in palladium

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













Palladium



182,072.1




$


317,018




$


492,870





97.55


%

Total investment in palladium



182,072.1




$


317,018




$


492,870





97.55


%

Other assets less liabilities











12,399





2.45


%

Net Assets









$


505,269





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 and six months ended June
30, 2021 and 2020
































































































































































































































































































































































































Three
Months Ended


June 30, 2021



Three
Months Ended


June 30, 2020



Six
Months Ended


June 30, 2021



Six
Months Ended


June 30, 2020


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

















EXPENSES

















Sponsor’s Fee


$


679




$


376




$


1,241




$


924



Total expenses




679






376






1,241






924




















Net investment loss



(

679


)



(

376


)



(

1,241


)



(

924


)


















REALIZED AND UNREALIZED GAINS / (LOSSES)

















Realized gain on palladium transferred to pay expenses




269






160






468






418



Realized gain on palladium distributed for the redemption of Shares




3,197






4,647






12,707






43,885



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




8,862





(

57,866


)




43,594





(

49,155


)

Change in unrealized gain on unsettled creations
or redemptions




159













159










Total gain/(loss) on investment in palladium




12,487





(

53,059


)




56,928





(

4,852


)


















Change in net assets from operations


$


11,808




$

(

53,435


)


$


55,687




$

(

5,776


)


















Net increase / (decrease) in net assets per
Share


$


6.65




$

(

37.93


)


$


32.50




$

(

3.77


)


















Weighted average number of Shares




1,774,725






1,408,791






1,713,398






1,530,632










See Notes to
the Financial Statements











3













ABERDEEN STANDARD PALLADIUM
ETF TRUST






Statements of Changes in Net Assets (Unaudited)



For the three and six months ended June
30, 2021 and 2020








































































































































































Three Months Ended June 30, 2021



Three Months Ended June 30, 2020


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


Shares



Amount



Shares



Amount


Opening balance



1,650,000




$


404,827





1,400,000




$


303,696



Net investment loss






(

679


)






(

376


)

Realized gain on investment in palladium







3,466









4,807



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







8,862








(

57,866


)

Change in unrealized gain on unsettled creations or redemptions







159











Creations



375,000






95,640





150,000






27,196



Redemptions


(

25,000


)



(

7,006


)


(

75,000


)



(

13,641


)

Closing balance



2,000,000




$


505,269





1,475,000




$


263,816









































































































































































Six Months Ended June 30, 2021



Six Months Ended June 30, 2020


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


Shares



Amount



Shares



Amount


Opening balance



1,625,000




$


356,238





1,675,000




$


300,485



Net investment loss






(

1,241


)






(

924


)

Realized gain on investment in palladium







13,175









44,303



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







43,594








(

49,155


)

Change in unrealized gain on unsettled creations or redemptions







159











Creations



500,000






124,164





400,000






81,005



Redemptions


(

125,000


)



(

30,820


)


(

600,000


)



(

111,898


)

Closing balance



2,000,000




$


505,269





1,475,000




$


263,816










See Notes to
the Financial Statements











4













ABERDEEN STANDARD PALLADIUM
ETF TRUST






Financial Highlights (Unaudited)



For the three and six months ended June
30, 2021 and 2020







































































































































































































































































































































Three
Months Ended


June 30, 2021



Three
Months Ended


June 30, 2020



Six
Months Ended


June 30, 2021



Six
Months Ended


June 30, 2020


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

















Net asset value per Share at beginning of period


$


245.35




$


216.93




$


219.22




$


179.39



Income from investment operations:

















Net investment loss



(

0.38


)



(

0.27


)



(

0.72


)



(

0.60


)

Total realized and unrealized gains or losses
on investment in palladium




7.66





(

37.80


)




34.13






0.07



Change in net assets from operations




7.28





(

38.07


)




33.41





(

0.53


)


















Net asset value per Share at end of period


$


252.63




$


178.86




$


252.63




$


178.86




















Weighted average number of Shares




1,774,725






1,408,791






1,713,398






1,530,632

























Expense
ratio

(1)










0.60


%




0.60


%




0.60


%




0.60


%























Net
investment loss ratio

(1)









(

0.60


)%



(

0.60


)%



(

0.60


)%



(

0.60


)%























Total
return, net asset value

(2)










2.97


%



(

17.55


)%




15.24


%



(

0.30


)%










(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 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 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 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 six
months ended June 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 six months ended June 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.










6

















ABERDEEN
STANDARD PALLADIUM ETF TRUST










Notes to the Financial
Statements (Unaudited)











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.





The Trust's palladium is held by JPMorgan Chase Bank,
N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises. The Trust's 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 June 30, 2021, approximately


62.12


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





The Trust's 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.









7

















ABERDEEN
STANDARD PALLADIUM ETF TRUST










Notes to the Financial
Statements (Unaudited)








– 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.





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$)


June
30, 2021



December
31, 2020









Level 1









Investment in palladium


$


492,870




$


356,424








There were no transfers
between levels during the three months ended June 30, 2021.











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 June 30, 2021, the Trust had $


12,631,929


of palladium receivable for the creation of Shares and


no


palladium payable for the 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)








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 June 30, 2021 or December 31, 2020.












9

















ABERDEEN
STANDARD PALLADIUM ETF TRUST










Notes to the Financial
Statements (Unaudited)











2.6.

Investment
in Palladium










Changes
in ounces of palladium and their respective values for the three and six months ended June 30, 2021 and 2020 are set
out below:












































































































































































































Three
Months Ended


June 30, 2021



Three
Months Ended


June 30, 2020


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









Ounces of palladium









Opening balance




154,300.3






131,714.5



Creations




30,350.1






14,090.0



Redemptions



(

2,335.3


)



(

7,047.2


)

Transfers of
palladium to pay expenses



(

243.0


)



(

203.5


)

Closing balance




182,072.1






138,553.8












Investment in palladium









Opening balance


$


405,039




$


303,865



Creations




83,167






27,196



Redemptions



(

7,006


)



(

13,641


)

Realized gain on palladium distributed for the
redemption of Shares




3,197






4,647



Transfers of palladium to pay expenses



(

658


)



(

416


)

Realized gain on palladium transferred to pay
expenses




269






160



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




8,862





(

57,866


)

Closing balance


$


492,870




$


263,945













































































































































































































Six
Months Ended


June 30, 2021



Six
Months Ended


June 30, 2020



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










Ounces of palladium









Opening balance




152,187.5






157,815.0



Creations




42,038.5






37,614.8



Redemptions



(

11,683.5


)



(

56,432.8


)

Transfers of palladium to
pay expenses



(

470.4


)



(

443.2


)

Closing balance




182,072.1






138,553.8












Investment in palladium









Opening balance


$


356,424




$


300,638



Creations




111,691






81,005



Redemptions



(

30,820


)



(

111,898


)

Realized gain on palladium distributed for the
redemption of Shares




12,707






43,885



Transfers of palladium to pay expenses



(

1,194


)



(

948


)

Realized gain on palladium transferred to pay
expenses




468






418



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




43,594





(

49,155


)

Closing balance


$


492,870




$


263,945















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.









10

















ABERDEEN
STANDARD PALLADIUM ETF TRUST










Notes to the Financial
Statements (Unaudited)








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 June 30,
2021 and 2020, the Sponsor’s Fee was $


678,513


and $


376,185


,
respectively.  For the six months ended June 30, 2021 and 2020, the Sponsor’s Fee was $


1,241,260


and $


923,775


, respectively.





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


232,913


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 and six months ended June 30, 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.











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.









11













ABERDEEN STANDARD PALLADIUM
ETF TRUST






Notes to the Financial Statements (Unaudited)








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.









12













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 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 “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.








13













ABERDEEN STANDARD PALLADIUM
ETF TRUST






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







June 30, 2021









The
Trust’s NAV increased from $404,826,709 at March 31, 2021 to $505,268,860, at June 30, 2021, a 24.81% 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
3.12% from $2,625.00 at March 31, 2021 to $2,707.00 at June 30, 2021, and an increase in outstanding Shares, which rose from
1,650,000 Shares March 31, 2021 to 2,000,000 Shares at June 30, 2021, as a result of 375,000 Shares (15 Baskets) being created and
25,000 Shares (1 Basket) being redeemed during the quarter.






The NAV per Share
increased 2.97% from $245.35 at March 31, 2021 to $252.63 at June 30, 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 $678,513 for the quarter, or 0.60% of the
Trust’s ANAV on an annualized basis.






The NAV per Share
of $280.24 at May 4, 2021 was the highest during the quarter, compared with a low of $235.50 at June 21, 2021.






The increase in
net assets from operations for the quarter ended June 30, 2021 was $11,807,916, resulting from a realized gain of $268,789 on the transfer
of palladium to pay expenses, a realized gain of $3,197,354 on palladium distributed for the redemption of Shares, a change in unrealized
gain on investment in palladium of $8,861,629 and a change in unrealized gain on unsettled creations of $158,657, offset by the Sponsor’s
Fee of $678,513. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended June 30, 2021.










The
Six Months Ended June 30, 2021










The Trust’s
NAV increased from $356,238,300 at December 31, 2020 to $505,268,860 at June 30, 2021, a 41.83% increase for the period. The increase
in the Trust’s NAV resulted primarily from an increase in the price per ounce of palladium, which rose 15.58% from $2,342.00 at
December 31, 2020 to $2,707.00 at June 30, 2021 and an increase in outstanding Shares, which rose from 1,625,000 at December 31, 2020
to 2,000,000 at June 30, 2021, as a result of 500,000 Shares (20 Baskets) being created and 125,000 Shares (5 Baskets) being redeemed during
the period.






The NAV per Share
increased 15.24% from $219.22 at December 31, 2020 to $252.63 at June 30, 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 $1,241,260 for the period, or 0.60%
of the Trust’s ANAV on an annualized basis.






The NAV per Share
of $280.24 at May 4, 2021 was the highest during the period, compared with a low of $211.24 at February 4, 2021.








14













ABERDEEN STANDARD PALLADIUM
ETF TRUST






The increase in net assets from operations for
the period ended June 30, 2021 was $55,686,436, resulting from a realized gain of $467,540 on the transfer of palladium to pay expenses,
a realized gain of $12,707,166 on palladium distributed for the redemption of Shares, a change in unrealized gain on investment in palladium
of $43,594,333 and a change in unrealized gain on unsettled creations of $158,657, offset by the Sponsor’s Fee of $1,241,260. Other
than the Sponsor’s Fee, the Trust had no expenses during the period ended June 30, 2021.









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 June 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 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 June 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 June 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













ABERDEEN STANDARD PALLADIUM
ETF TRUST










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 June 30, 2021:




15
Baskets were created.




1
Basket was redeemed.






















































Period














Total Baskets






Redeemed














Total Shares Redeemed













Average ounces of


palladium


per Share




April 2021

























May 2021







1







25,000







0.093




June 2021































1







25,000







0.093











Item
3. Defaults Upon Senior Securities






None.










Item
4. Mine Safety Disclosures






Not applicable.










Item
5. Other Information






None.








16













ABERDEEN STANDARD PALLADIUM
ETF TRUST











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 June 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

June 30, 2021

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









17













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: August 6, 2021



/s/ Steven Dunn




Steven Dunn *




President and Chief Executive Officer




(Principal Executive Officer)





Date: August 6, 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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Quarterly report [Sections 13 or 15(d)] - Aug. 5, 2022

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