abrdn Palladium ETF Trust Reports 4.18% Increase in NAV for Q1 2025

abrdn Palladium ETF Trust reported its financial results for the first quarter of 2025, revealing a net asset value (NAV) of $368.9 million, an increase of 4.18% from $354.1 million at the end of 2024. The NAV per share rose to $89.97, up from $83.06, reflecting an 8.32% increase. The Trust's investment in palladium, valued at $369.0 million, decreased from $490.8 million at the end of the previous fiscal year, primarily due to a reduction in the quantity of palladium held, which fell from 389,706.3 ounces to 374,276.3 ounces.

The Trust's financial performance showed significant changes compared to the same period in 2024. For the three months ended March 31, 2025, the Trust reported a net investment loss of $521,000, compared to a loss of $315,000 in the prior year. Realized losses on palladium distributed for the redemption of shares increased to $14.7 million from $11.7 million. However, the Trust experienced a substantial unrealized gain of $45.4 million, contrasting with an unrealized loss of $8.9 million in the previous year, leading to a total gain on investment in palladium of $30.5 million.

Operationally, the Trust saw a decrease in the number of shares outstanding, which fell from 4,262,500 at the end of 2024 to 4,100,000 by March 31, 2025. This change was attributed to the creation of 412,500 shares and the redemption of 575,000 shares during the quarter. The weighted average number of shares increased to approximately 3.96 million from 2.34 million in the same quarter of the previous year, indicating a growing interest in the Trust's shares despite the overall reduction in outstanding shares.

The Trust's management noted that the increase in NAV was driven by an 8.47% rise in the price of palladium, which increased from $909.00 to $986.00 per ounce during the quarter. The Sponsor's fee remained consistent at 0.60% of the adjusted net asset value, amounting to $521,000 for the quarter. The Trust's liquidity position remains stable, with no cash balances reported, as expenses are primarily covered through in-kind transfers of palladium to the Sponsor.

Looking ahead, the Trust's management remains optimistic about the palladium market, although they acknowledge the inherent risks associated with fluctuations in palladium prices. The Trust continues to focus on its investment objective of reflecting the performance of physical palladium prices, less expenses, and aims to provide investors with a cost-effective means of participating in the palladium market. The Trust's operational structure and investment strategy are expected to remain consistent, with no significant changes anticipated in the near term.