Filed 2026-03-02 · Period ending 2025-12-31 · 40,138 words · SEC EDGAR
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# abrdn Gold ETF Trust (SGOL) — 10-K
**Filed:** 2026-03-02
**Period ending:** 2025-12-31
**Accession:** 0001999371-26-004879
**Source:** [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1450923/000199937126004879/)
**Origin leaf:** 72fafc639215d229aa309ac0d1198ae554ecc12b8dbef48d45733e38e3b0de4b
**Words:** 40,138
---
**
UNITED
STATES**
**SECURITIES
AND EXCHANGE COMMISSION**
**Washington,
D.C. 20549**
**Form
10-K**
|
| ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
**For
the fiscal year ended December 31, 2025**
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: 001-34441
abrdn
Gold ETF Trust
(Exact
name of registrant as specified in its charter)
|
New York |
26-4587209 | |
|
(State or other jurisdiction of incorporation or
organization) |
(I.R.S. Employer Identification No.) | |
|
c/o abrdn
ETFs Sponsor LLC
1900 Market Street, Suite 200
Philadelphia, PA |
19103 |
|
|
(Address of principal
executive offices) |
(Zip
Code) | |
(844)
383-7289
*(Registrants
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 | |
|
abrdn Physical Gold
Shares ETF |
|
SGOL |
|
NYSE Arca | |
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No
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 has filed a report on and attestation to its managements assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by
the registered public accounting firm that prepared or issued its audit report.
If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Aggregate
market value of the registrants shares outstanding held by non-affiliates of the registrant based upon the closing price
of a share on June 30, 2025 as reported by the NYSE Arca, Inc. on that date: $5,197,792,000.
As
of February 26, 2026, abrdn Gold ETF Trust had 182,400,000 abrdn Physical Gold Shares ETF outstanding.
DOCUMENTS
INCORPORATED BY REFERENCE: None
FORWARD
LOOKING STATEMENTS
This
Annual Report on Form 10-K contains various 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. Forward-looking statements usually include the words, anticipates,
believes, estimates, expects, intends, plans, projects,
understands and other words suggesting uncertainty. We remind readers that forward-looking statements are merely
predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could
cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different
from any future results, performance, levels of activity, or our achievements expressed or implied by such forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
The Trust undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Additional
significant uncertainties and other factors affecting forward-looking statements are presented in the Risk Factors section herein.
TABLE
OF CONTENTS
|
PART I |
2 | |
|
Item 1. Business |
2 | |
|
Trust Objective |
2 | |
|
Overview of the Gold Industry |
3 | |
|
Operation of the Gold Bullion Market |
5 | |
|
Market Regulation |
7 | |
|
Secondary Market Trading |
8 | |
|
Valuation of Gold and Computation of Net Asset Value |
8 | |
|
Trust Expenses |
9 | |
|
Creation and Redemption of Shares |
9 | |
|
Creation and Redemption Transaction Fee |
13 | |
|
The Sponsor |
13 | |
|
The Trustee |
13 | |
|
The Custodian |
14 | |
|
Inspection of Gold |
14 | |
|
Description of the Shares |
15 | |
|
Custody of the Trusts Gold |
15 | |
|
United States Federal Income Tax Consequences |
16 | |
|
ERISA and Related Considerations |
18 | |
|
Item 1A. Risk Factors |
19 | |
|
Item 1B. Unresolved Staff Comments |
27 | |
|
Item 1C. Cybersecurity |
27 | |
|
Item 2. Properties |
27 | |
|
Item 3. Legal Proceedings |
27 | |
|
Item 4. Mine Safety Disclosure |
27 | |
|
|
|
|
PART II |
28 | |
|
Item 5. Market for Registrants Common Equity , Related Stockholder Matters and Issuer Purchases of Equity Securities |
28 | |
|
Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations |
30 | |
|
Item 7A. Quantitative and Qualitative Disclosures about Market Risk |
33 | |
|
Item 8. Financial Statements and Supplementary Data |
34 | |
|
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
35 | |
|
Item 9A. Controls and Procedures |
35 | |
|
Item 9B. Other Information |
37 | |
|
|
| |
|
PART III |
38 | |
|
Item 10. Directors, Executive Officers and Corporate Governance |
38 | |
|
Item 11. Executive Compensation |
38 | |
|
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
38 | |
|
Item 13. Certain Relationships and Related Transactions, and Director Independence |
39 | |
|
Item 14. Principal Accounting Fees and Services |
39 | |
|
|
| |
|
PART IV |
40 | |
|
Item 15. Exhibits, Financial Statement Schedule |
40 | |
|
Item 16. Form 10K Summary |
41 | |
PART
I
Item
1. Business
The
purpose of the abrdn Gold ETF Trust (the Trust) is to own gold transferred to the Trust in exchange for shares issued
by the Trust (Shares). Each Share represents a fractional undivided beneficial interest in and ownership of the
Trust. The assets of the Trust consist solely of gold bullion. The Trust was formed on September 1, 2009 when an initial deposit
of gold was made in exchange for the issuance of two Baskets (at the time of the initial deposit, a "Basket" consisted of 50,000 Shares; effective November 4, 2019, the number of shares comprising
a Basket was increased to 100,000 Shares).
The Trusts Shares at redeemable value increased from $3,756,119,448 at December 31, 2024 to $7,332,589,978 at December 31, 2025, theTrusts
fiscal year end. Outstanding Shares in the Trust increased from 150,700,000 Shares at December 31, 2024 to 178,600,000 Shares at December
31, 2025.
The
Trust is not managed like a corporation or an active investment vehicle. The Trust has no directors, officers or employees. It
does not engage in any activities designed to obtain a profit from or to improve the losses caused by changes in the price of
gold. The gold held by the Trust will only be delivered to pay the remuneration due to the Sponsor (the Sponsors
Fee), distributed to Authorized Participants (defined below) in connection with the redemption of Baskets or sold (1) on
an as-needed basis to pay Trust expenses not assumed by the Sponsor, (2) in the event the Trust terminates and liquidates its
assets, or (3) as otherwise required by law or regulation.
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. The Trust does not and will not hold or trade in commodities futures contracts, commodity interests or
any other instruments regulated by the Commodity Exchange Act (the CEA), as administered by the Commodity Futures
Trading Commission (the CFTC) and the National Futures Association (NFA). The Trust is not a commodity
pool for purposes of the CEA and the Shares are not commodity interests, and neither the Sponsor nor the Trustee
is subject to regulation as a commodity pool operator or a commodity trading advisor in connection with the Shares. The Trust
has no fixed termination date.
The
Sponsor of the registrant maintains an Internet website at www.abrdn.com/us/etf through which the registrants annual reports
on Form 10-K, quarterly reports on Form 10-Q, and amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are made available free of charge as soon as reasonably
practicable after they have been filed or furnished to the Securities and Exchange Commission (the SEC). The SEC
maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that
file electronically at www.sec.gov.
Trust
Objective
The
investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trusts
expenses. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment
in physical gold. An investment in physical gold requires expensive and sometimes complicated arrangements in connection with
the assay, transportation, warehousing and insurance of the metal. Traditionally, such expense and complications have resulted
in investments in physical gold being efficient only in amounts beyond the reach of many investors.
The
Shares are intended to provide institutional and retail investors with a simple and cost-efficient means, with minimal credit
risk, of gaining investment benefits similar to those of holding gold bullion. The Shares offer an investment that:
|
| Easily
Accessible and Relatively Cost Effective. Investors can access the gold bullion market
through a traditional brokerage account. The Sponsor believes that investors will be
able to more effectively implement strategic and tactical asset allocation strategies
that use gold bullion by using the Shares instead of using the traditional means of purchasing,
trading and holding gold bullion and for many investors, transaction costs related to
the Shares will be lower than those associated with the purchase, storage and insurance
of physical gold bullion. | |
|
| Exchange
Traded and Transparent. The Shares trade on the NYSE Arca, providing investors with
an efficient means to implement various investment strategies. The Shares are eligible
for margin accounts and are backed by the assets of the Trust and the Trust does not
hold or employ any derivative securities. Furthermore, the value of the Trusts
holdings are reported on the Trusts website daily. | |
2
|
| Minimal
Credit Risk. The Shares represent an interest in physical gold owned by the Trust (other than an amount held in unallocated
form which is not sufficient to make up a whole bar of which is held temporarily to effect a creation or redemption of Shares).
Physical gold of the Trust in the Custodians possession is not subject to borrowing arrangements with third parties. Other
than the gold temporarily being held in an unallocated gold account with the Custodian, the physical gold of the Trust is not
subject to counterparty or credit risks. See Risk FactorsGold held in the Trusts unallocated gold account
and any Authorized Participants unallocated gold account is not segregated from the Custodians assets...
This contrasts with most other financial products that gain exposure to gold through the use of derivatives that are subject
to counterparty and credit risks. |
|
Investing
in the Shares does not insulate the investor from certain risks, including price volatility. See Risk Factors.
Overview
of the Gold Industry
In
this annual report, the term ounces refers to fine troy ounces.
*Market
Participants*
The
participants in the world gold market may be classified in the following sectors: the mining and producer sector, the banking
sector, the official sector, the investment sector, and the manufacturing sector. A brief description of each follows.
*Mining
and Producer Sector*
This
group includes mining companies that specialize in gold and silver production, mining companies that produce gold as a by-product
of other production (such as a copper or silver producer), scrap merchants and recyclers.
*Banking
Sector*
Gold
bullion banks provide a variety of services to the gold market and its participants, thereby facilitating interactions between
other parties. Services provided by the gold bullion banking community include traditional banking products as well as mine financing,
physical gold purchases and sales, hedging and risk management, inventory management for industrial users and consumers, and gold
deposit and loan instruments.
*The
Official Sector*
The
official sector encompasses the activities of the various central banking operations of gold-holding countries. According to statistics provided by the World Gold Council, as of Q4 2025, central banks are estimated to hold approximately 36,492 tonnes
("tonne" refers to one metric tonne, which is equivalent to1,000 kilograms or 32,151 troy ounces) of gold reserves.
*The
Investment Sector*
This
sector includes the investment and trading activities of both professional and private investors and speculators. These participants
range from large hedge and mutual funds to day-traders on futures exchanges, and retail-level coin collectors.
*The
Manufacturing Sector*
The
fabrication and manufacturing sector represents all the commercial and industrial users of gold for whom gold is a daily part
of their business. The jewelry industry is a large user of gold. Other industrial users of gold include the electronics and dental
industries.
*World
Gold Supply and Demand 2015-2024 (in tonnes)*
The
following table sets forth a summary of the world gold supply and demand for the period from 2015 to 2024 and is based on information
reported by the World Gold Council. Information for the calendar year ended 2025 is not available as of the date of this report
|
(tonnes) | |
2015 | | |
2016 | | |
2017 | | |
2018 | | |
2019 | | |
2020 | | |
2021 | | |
2022 | | |
2023 | | |
2024 | | |
|
Supply | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Mine production | |
| 3,362 | | |
| 3,516 | | |
| 3,581 | | |
| 3,658 | | |
| 3,606 | | |
| 3,483 | | |
| 3,579 | | |
| 3,645 | | |
| 3,641 | | |
| 3,645 | | |
|
Net producer hedging | |
| 13 | | |
| 38 | | |
| (26 | ) | |
| (12 | ) | |
| 6 | | |
| (37 | ) | |
| (5 | ) | |
| (7 | ) | |
| 69 | | |
| (54 | ) | |
|
Recycled gold | |
| 1,067 | | |
| 1,232 | | |
| 1,112 | | |
| 1,132 | | |
| 1,276 | | |
| 1,293 | | |
| 1,136 | | |
| 1,136 | | |
| 1,234 | | |
| 1,366 | | |
|
Total supply | |
| 4,442 | | |
| 4,786 | | |
| 4,667 | | |
| 4,778 | | |
| 4,888 | | |
| 4,739 | | |
| 4,710 | | |
| 4,775 | | |
| 4,944 | | |
| 4,957 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Demand | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Jewellery fabrication | |
| 2,479 | | |
| 2,023 | | |
| 2,267 | | |
| 2,298 | | |
| 2,162 | | |
| 1,332 | | |
| 2,252 | | |
| 2,208 | | |
| 2,208 | | |
| 2,027 | | |
|
Jewellery consumption | |
| 2,459 | | |
| 2,108 | | |
| 2,250 | | |
| 2,263 | | |
| 2,142 | | |
| 1,405 | | |
| 2,177 | | |
| 2,095 | | |
| 2,109 | | |
| 1,888 | | |
|
Jewellery inventory | |
| 20 | | |
| (85 | ) | |
| 17 | | |
| 34 | | |
| 20 | | |
| (73 | ) | |
| 75 | | |
| 114 | | |
| 99 | | |
| 139 | | |
|
Technology | |
| 338 | | |
| 329 | | |
| 339 | | |
| 342 | | |
| 333 | | |
| 309 | | |
| 337 | | |
| 315 | | |
| 305 | | |
| 326 | | |
|
Electronics | |
| 268 | | |
| 262 | | |
| 272 | | |
| 275 | | |
| 269 | | |
| 255 | | |
| 279 | | |
| 258 | | |
| 249 | | |
| 271 | | |
|
Other Industrial | |
| 51 | | |
| 50 | | |
| 51 | | |
| 52 | | |
| 50 | | |
| 42 | | |
| 47 | | |
| 47 | | |
| 47 | | |
| 47 | | |
|
Dentistry | |
| 19 | | |
| 18 | | |
| 16 | | |
| 15 | | |
| 14 | | |
| 12 | | |
| 11 | | |
| 10 | | |
| 9 | | |
| 9 | | |
|
Investment | |
| 964 | | |
| 1,622 | | |
| 1,322 | | |
| 1,167 | | |
| 1,282 | | |
| 1,805 | | |
| 1,007 | | |
| 1,125 | | |
| 951 | | |
| 1,181 | | |
|
Total bar and coin | |
| 1,087 | | |
| 1,079 | | |
| 1,051 | | |
| 1,097 | | |
| 878 | | |
| 913 | | |
| 1,196 | | |
| 1,235 | | |
| 1,195 | | |
| 1,187 | | |
|
Bars | |
| 787 | | |
| 803 | | |
| 787 | | |
| 782 | | |
| 590 | | |
| 553 | | |
| 826 | | |
| 814 | | |
| 787 | | |
| 863 | | |
|
Official Coins | |
| 224 | | |
| 208 | | |
| 188 | | |
| 242 | | |
| 221 | | |
| 290 | | |
| 284 | | |
| 321 | | |
| 293 | | |
| 199 | | |
|
Medals/Imitation Coins | |
| 76 | | |
| 68 | | |
| 76 | | |
| 73 | | |
| 67 | | |
| 70 | | |
| 86 | | |
| 100 | | |
| 115 | | |
| 126 | | |
|
ETFs & similar products | |
| (124 | ) | |
| 543 | | |
| 271 | | |
| 70 | | |
| 404 | | |
| 893 | | |
| (189 | ) | |
| (110 | ) | |
| (244 | ) | |
| (6 | ) | |
|
Central banks & other inst. | |
| 580 | | |
| 395 | | |
| 379 | | |
| 656 | | |
| 605 | | |
| 255 | | |
| 450 | | |
| 1,080 | | |
| 1,051 | | |
| 1,089 | | |
|
Gold demand | |
| 4,360 | | |
| 4,370 | | |
| 4,307 | | |
| 4,463 | | |
| 4,382 | | |
| 3,701 | | |
| 4,047 | | |
| 4,729 | | |
| 4,515 | | |
| 4,623 | | |
|
OTC and other* | |
| 82 | | |
| 416 | | |
| 360 | | |
| 316 | | |
| 506 | | |
| 1,038 | | |
| 663 | | |
| 46 | | |
| 429 | | |
| 334 | | |
|
Total demand | |
| 4,442 | | |
| 4,786 | | |
| 4,667 | | |
| 4,778 | | |
| 4,888 | | |
| 4,739 | | |
| 4,710 | | |
| 4,775 | | |
| 4,944 | | |
| 4,957 | | |
|
LBMA Gold Price (US$/oz) | |
| 1,160 | | |
| 1,251 | | |
| 1,257 | | |
| 1,268 | | |
| 1,393 | | |
| 1,770 | | |
| 1,799 | | |
| 1,800 | | |
| 1,941 | | |
| 2,386 | | |
*Source:
Metals Focus, Refinitiv GFMS, ICE Benchmark Administration, World Gold Council*
**
This number captures demand in the OTC market (for which data is not readily available), changes to inventories on commodity
exchanges, any unobserved changes in fabrication inventories and any statistical residual. It is the difference between total supply
and gold demand.*
3
The
following are some of the main characteristics of the gold market illustrated by the table:
One
factor which separates gold from other precious metals is that there are large above-ground stocks which can be quickly mobilized.
As a result of golds liquidity, gold often acts more like a currency than a commodity.
Over
the past ten years, (new) mine production of gold has experienced a modest rise of an average of 1.41% per annum. Of the three
sources of supply, mine production accounted for 73.5% in 2024. Recycled gold volumes have ranged from 1,067 tonnes to 1,366 tonnes
over the past 10 years.
On
the demand side, jewelry is clearly the greatest source of demand, accounting for 43.8% of total demand in 2024. Industrial demand
has fluctuated between 6.7% and 8.3% of total demand over the past 10 years. Exchange traded product inventory build was positive
each year from 2016 to 2020, averaging 8% of total demand and peaking at 24.1% in 2020, but experienced net outflows on average
of -3.1% from 2021 to 2024. Coin and bar demand fell to a 10-year low in 2019 but has since averaged 26.5% of total demand from
2020 to 2024. Demand from Central Banks and other institutions fluctuated between 8.8% and 14.7% from 2015 to 2019, before reaching
a low of 6.9% in 2020. However, that figure has increased in each of the last three years, reaching a high of 23.6% in 2024.
*Historical
Chart of the Price of Gold*
The
price of gold is volatile and fluctuations are expected to have a direct impact on the value of the Shares. However, movements
in the price of gold in the past are not a reliable indicator of future movements. Movements may be influenced by various factors,
including announcements from central banks regarding a countrys reserve gold holdings, agreements among central banks,
political uncertainties around the world, and economic concerns.
The
following chart illustrates the movements in the price of an ounce of gold in U.S. Dollars from December 31, 2015 to December
31, 2025:
*Source:
Bloomberg, Aberdeen. Chart data from 12/31/2015 to 12/31/2025. Spot Gold Price = GOLDLNPM Index.*
The
following is a discussion of the movements in the price of gold illustrated by the table:
The
price of gold tends to rise during periods of low real interest rates and high monetary expansion, as they are often associated
with currency debasement and systemic financial failures. The price of gold peaked at $1,943.20 per ounce in January 2021 as the
uncertainties regarding the pandemic drove prices higher. 2021 proved to be a volatile year for gold as major market events and
continued pandemic uncertainty, coupled with new variants, allowed gold to remain in the investment picture during the year. Additionally,
the trends of 3 years of investor outflows in global ETFs and net negative investor sentiment in gold futures positioning reversed
in 2016 and continued through 2021. Continued low real interest rates, tepid economic growth, and concerns regarding the recovery
of the pandemic were key tailwinds for gold that sparked a return of investor interest. 2022 proved to be another volatile year
for gold as the price climbed as high as $2,039.05 per ounce in the weeks following Russias invasion of Ukraine. Aggressive
interest rate hikes by the U.S. Federal Reserve coupled and a strengthening of the US Dollar saw ETF holders liquidate as the
price of gold dropped as low as $1,628.75 per ounce on November 3, 2022. However, increased demand from central banks, along with
the weakening of the U.S. Dollar, sparked a fourth quarter rally that saw the price of gold climb to $1,813.75 per ounce to close
2022.
Similarly
in 2023, economic and geopolitical factors continued to drive volatility in the price of gold over the course of the year. While
the central bank demand that sparked a fourth quarter rally remained strong throughout the year, a weaker US Dollar and a drop
in US 10-Year Treasury Yields caused the price of gold to reach $1,932.45 per ounce on January 26, 2023. However, the disappointing
Chinese economic recovery drove the price as low as $1,810.95 per ounce on February 24, 2023, before the US banking crisis increased
the likelihood of US policy rate cuts and drove the spot price as high as $2,048.45 per ounce on April 13, 2023 as investors turned
to gold in anticipation of lower interest rates. However, the subsequent interest rate hike by the US Federal Reserve in May contributed
to the price of gold falling as low as $1,899.60 per ounce on June 29th, 2023. The price of gold continued to fluctuate throughout
the third quarter as a weaker dollar and central bank purchasing drove the spot price back up to $1,976.10 per ounce on July 20,
2023, however the US
Federal
Reserves final interest rate hike of the year on July 26 increased the probability of a policy rate mistake given mixed
economic news leading the price to close as low as $1,870.50 per ounce on September 29, 2023. The spot price of gold continued
to fall at the start of the fourth quarter, reaching as low as $1,818.95 per ounce on October 4, 2023, before the US Treasury
shifted issuance to short duration bonds, lowering 10-year yields. While treasury market yields moved lower, removing the risk
of excessive policy rate tightening, tensions in the Middle East increased with the attacks by Hamas on Israeli targets and civilians
escalating the ongoing conflict between the two entities. Subsequently, the spot price of gold climbed as high as $1,997.60 per
ounce on October 30, 2023. The spot price of gold gave back some of its gains over the first half of November before speculation
of potential interest rate cuts in the US and Chinese economic stimulus drove the spot price of gold to an all-time high of $2,078.40
per ounce on December 28, 2023.
4
In
2024, the spot price of gold was relatively flat to start the year as metals investors focused on hopes of economic stimulus out
of China making a meaningful rise in demand in more cyclically exposed metals like copper and silver. This led to a continuation
of the sharp reduction in gold owned by ETF investors into March, which moderated into June as it became clear the U.S Federal
Reserve was going to need to cut interest rates in the Autumn. From July to October these investors added to positions helping
support gold prices as central bank purchases continued albeit without the Peoples Bank of China which halted purchases between
June and October. The primary motivator for central bank purchases of gold are as a foreign exchange reserves diversifier away
from U.S Dollars and Treasuries at the margin. The Council of Foreign Relations notes a primary risk to emerging market economies
comes from sanctions, tariffs and U.S. Dollar trading system bans on behest of western economies. The results of the U.S. election
raise the prospects of sanctions, and tariffs and thus the motivation to continue reserve diversification with gold purchases.
The
threat of tariffs and sanctions were very much in focus at the start of 2025, with the market narrative that blanket U.S. tariffs
could potentially cause a recession that would require aggressive interest rate cuts, driving interest in exchange-traded funds
(ETFs), while the spot climbed to $3,115.1 per ounce to end the first quarter. Despite the increase in the spot price, the magnitude
of U.S. tariffs at the start of April continued to support demand from central banks moving to diversify their foreign exchange
reserves away from U.S. dollars and treasuries, which can become illiquid in the event of tariffs or sanctions. Further, Chinese
insurance companies were given the option to own gold, and several joined the Shanghai Gold Exchange as members. Those holdings
would be longer-term based and early signs indicated an uptick in gold demand from that sector, which provided an additional tailwind
to the spot price. However, in May, progress on trade deal frameworks with a number of countries, as well as a Federal Reserve
which seemed hesitant to cut rates, sent the spot price of gold into a tighter range of trading where it would remain until the
end of August. Following U.S. employment numbers that were revised dramatically lower, it became clear the Federal Reserve would
need to cut in September driving investment demand for gold higher. The combination of investor demand and central bank demand
created a powerful rally into the end of September. Following a 10% selloff in October, gold experienced a sustained
rally into year-end that saw the spot price close out the year up 65% at $4,307.95 per ounce.
Operation
of the Gold Bullion Market
The
global trade in gold consists of Over-the-Counter (OTC) transactions in spot, forwards, and options and other derivatives,
together with exchange-traded futures and options.
*Global
Over-The-Counter Market*
The
OTC market trades on a 24-hour per day continuous basis and accounts for most global gold trading.
Market
makers, as well as others in the OTC market, trade with each other and with their clients on a principal-to-principal basis. All
risks and issues of credit are between the parties directly involved in the transaction. Market makers include the market-making
members of the London Bullion Market Association (LBMA), the trade association that acts as the coordinator for
activities conducted on behalf of its members and other participants in the London bullion market. The eleven market-making members
of the LBMA are: BNP Paribas SA, Citibank N.A., Goldman Sachs International, HSBC Bank PLC, ICBC Standard Bank, JPMorgan Chase
Bank, Merrill Lynch International, Morgan Stanley & Co. International Plc, Standard Chartered Bank, Toronto-Dominion Bank
and UBS AG.
The
main centers of the OTC market for gold are London, Zurich and New York. Mining companies, central banks, manufacturers of jewelry
and industrial products, together with investors and speculators, tend to transact their business through one of these market
centers. Centers such as Dubai and several cities in the Far East also transact substantial OTC market business, typically involving
jewelry and small gold bars (1 kilogram or less) and will hedge their exposure by selling into one of these main OTC centers.
Bullion dealers have offices around the world and most of the worlds major bullion dealers are either members or associate
members of the LBMA.
In
the OTC market, the standard size of gold trades between market makers ranges between 5,000 and 10,000 ounces. Bid-offer spreads
are typically 50 US cents per ounce. Certain dealers are willing to offer clients competitive prices for much larger volumes,
including trades over 100,000 ounces, although this will vary according to the dealer, the client and market conditions, as transaction
costs in the OTC market are negotiable between the parties and therefore vary widely. Cost indicators can be obtained from various
information service providers as well as dealers.
5
Liquidity
in the OTC market can vary from time to time during the course of the 24-hour trading day. Fluctuations in liquidity are reflected
in adjustments to dealing spreadsthe differential between a dealers buy and sell prices.
The period of greatest liquidity in the gold market generally occurs at the time of day when trading in the European time zones
overlaps with trading in the United States, which is when OTC market trading in London, New York and other centers coincides with
futures and options trading on the Commodity Exchange, Inc. (COMEX), a designated contract market within the CME
Group. This period lasts for approximately four hours each New York business day morning.
*The
London Gold Bullion Market*
Although
the market for physical gold is distributed globally, most OTC market trades are cleared through London. In addition to coordinating
market activities, the LBMA acts as the principal point of contact between the market and its regulators. A primary function of
the LBMA is its involvement in the promotion of refining standards by maintenance of the Good Delivery List, which
is a list of LBMA accredited refiners of gold. The LBMA also coordinates market clearing and vaulting, promotes good trading practices
and develops standard documentation.
The
term loco London gold refer to gold physically held in London that meets the specifications for weight, dimensions,
fineness (or purity), identifying marks (including the assay stamp of a LBMA acceptable refiner) and appearance set forth in The
Good Delivery Rules for Gold and Silver Bars published by the LBMA. Gold bars meeting these requirements are described
in this annual report from time to time as London Good Delivery Bars. The unit of trade in London is the troy ounce,
whose gram conversion is: 1,000 grams equals 32.1507465 troy ounces and 1 troy ounce equals 31.1034768 grams. A London Good Delivery
Bar is acceptable for delivery in settlement of a transaction on the OTC market. Typically referred to as 400-ounce bars, a London
Good Delivery Bar must contain between 350 and 430 fine troy ounces of gold, with a minimum fineness (or purity) of 995 parts
per 1,000 (99.5%), be of good appearance and be easy to handle and stack. The fine gold content of a gold bar is calculated by
multiplying the gross weight of the bar (expressed in units of 0.025 troy ounces) by the fineness of the bar. A London Good Delivery
Bar must also bear the stamp of one of the refiners who are on the LBMA approved list. Unless otherwise specified, the gold spot
price always refers to that of a London Good Delivery Bar. Business is generally conducted over the phone and through electronic
dealing systems.
On
March 20, 2015, ICE Benchmark Administration (IBA) began administering the operation of an equilibrium auction,
which is an electronic, tradable and auditable, over-the-counter auction market with the ability to settle trades in US Dollars
(USD), Euros or British Pounds for LBMA-authorized participating gold bullion banks or market makers (gold
participants) that establishes a reference gold price for that days trading. IBAs equilibrium auction is
the gold valuation replacement selected by the LBMA for the London gold fix previously determined by the London Gold Market Fixing
Ltd. that was discontinued on March 19, 2015. IBAs equilibrium auction, establishes and publishes a USD price per troy
ounce of gold twice each London trading day following an electronic auction consisting of one or more 30-second rounds beginning
at 10:30 a.m. London time (the LBMA Gold Price AM) and 3:00 p.m. London time (the LBMA Gold Price PM).
Daily
during London trading hours the LBMA Gold Price AM and the LBMA Gold Price PM each provide reference gold prices for that days
trading. Many long-term contracts will be priced on either the basis of the LBMA Gold Price AM or the LBMA Gold Price PM, and
market participants will usually refer to one or the other of these prices when looking for a basis for valuations. The LBMA Gold
Price AM and the LBMA Gold Price PM, determined according to the methodologies of IBA and disseminated electronically by IBA to
selected major market data vendors, such as Refinitiv and Bloomberg, are widely used benchmarks for daily gold prices and are
quoted by various financial information sources as the London gold fix was previously. The Trust values its gold on the basis
of LBMA Gold Price PM. If there is no LBMA Gold Price PM on any day, the Trust will value its gold on the basis of LBMA Gold Price
AM announced on that day. If neither price is available for that day, the Trust will value its gold based on the most recently
announced LBMA Gold Price PM or LBMA Gold Price AM.
The
LBMA Gold Price PM is the result of an equilibrium auction because it establishes a price for a troy ounce of gold
that clears the maximum amount of bids and offers for gold entered by order-submitting gold participants each day. The opening
bid and subsequent bid prices are generated by an algorithm based method, and each auction is actively supervised by IBA staff.
There are currently 15 direct gold participants (Bank of China, Citibank N.A. London Branch, Coins N Things, Inc., DRW
Investments, LLC, Goldman Sachs, HSBC Bank USA NA, Limited, London Branch, StoneX Financial Ltd., Jane
Street Global Trading, LLC, JPMorgan Chase Bank, N.A. London Branch, Koch Supply and Trading LP, Marex, Morgan Stanley, Standard
Chartered Bank and, Toronto Dominion Bank, and Virtu Financial Global Markets, LLC), and IBA uses ICEs front-end system, WebICE, as the technology platform that
allows direct participants as well as sponsored clients to manage their orders in the auction in real time via their own screens.
The
IBA auction process begins with a notice of an auction round issued to gold participants before the commencement of the auction
round stating a gold price in U.S. Dollars, at which the auction round will be conducted. An auction round lasts 30 seconds. Gold
participants electronically place bid and offer orders at the rounds stated price and indicate whether the orders are for
their own account or for the account of clients. Aggregate bid and offer volume will be shown live on WebICE, providing a level
playing field for all participants.
At
the end of the auction round, the IBA system evaluates the equilibrium of the bid and offer orders submitted. If bid and offer
orders indicate an imbalance outside of acceptable tolerances established for the IBA system (normally 10,000 oz) (e.g., too many
purchase orders submitted compared to sell orders or vice versa), the auction chairman calculates a new auction round price principally
based on the volume weighting of bid and offer orders submitted in the immediately completed auction round. For instance, if the
order imbalance indicates that purchase orders (bids) outweigh sales orders (offers) then a new auction round price will be issued
that will be increased over that used in the prior auction round. Likewise, the new auction round price will be decreased from
the prior rounds price if offers outweigh bids. To clear the imbalance, the IBA system then issues another notice of auction
round to gold participants at the newly calculated price. During this next 30 second auction round, gold participants again submit
orders, and after it ends, the IBA system evaluates for order imbalances. If order imbalances persist, a new auction price is
calculated and a further auction round will occur. This auction round process continues until an equilibrium within specified
tolerances is determined to exist. Once the IBA system determines that orders are in equilibrium within system tolerances, the
auction process ends and the equilibrium auction round price becomes the LBMA Gold Price PM.
6
The
LBMA Gold Price PM and all bid and offer order information for all auction rounds become publicly available electronically via
IBA instantly after the conclusion of the equilibrium auction. Since April 1, 2015, the LBMA Gold Price has been regulated by
the Financial Conduct Authority (FCA) in the United Kingdom (UK). IBA also has an Oversight Committee,
made up of market participants, industry bodies, direct participant representatives, infrastructure providers and IBA. The Oversight
Committee allows the LBMA to continue to have significant involvement in the oversight of the auction process, including, among
other matters, changes to the methodology and accreditation of direct participants. Additionally, IBA watches over the price discovery
process for the LBMA Gold Price and ensures that it meets the International Organization of Securities Commissions (IOSCO)
Principles for Financial Benchmarks, (the IOSCO Principles).
The
LBMA Gold Price PM is widely viewed as a full and fair representation of all or material market interest at the conclusion of
the equilibrium auction. IBAs LBMA Gold Price PM electronic auction methodology is similar to the non-electronic process
previously used to establish the London gold fix where the London gold fix process adjusted the gold price up or down until all
the buy and sell orders are matched, at which time the price was declared fixed. Nevertheless, the LBMA Gold Price PM has several
advantages over the previous London gold fix. The LBMA Gold Price PM auction process is fully transparent in real time to the
gold participants and, at the close of each equilibrium auction, to the general public.
The
LBMA Gold Price PM auction process is also fully auditable by third parties since an audit trail exists from the time of each
notice of an auction round. Moreover, the LBMA Gold Price PMs audit trail and active, real time surveillance of the auction
process by IBA as well as FCAs oversight of IBA, deters manipulative and abusive conduct in establishing each days
LBMA Gold Price PM.
Since
March 20, 2015, the Sponsor determined that the London gold fix, which ceased to be published as of March 19, 2015, could no longer
serve as a basis for valuing gold bullion received upon purchase of the Trusts Shares, delivered upon redemption of the
Trusts Shares and otherwise held by the Trust on a daily basis, and that the LBMA Gold Price PM is an appropriate alternative
for determining the value of the Trusts gold each trading day. The Sponsor also determined that the LBMA Gold Price PM
fairly represents the commercial value of gold bullion held by the Trust and the Benchmark Price (as defined in
Trust Agreement) as of any day is such days LBMA Gold Price PM or such days LBMA Gold Price AM if such days
LBMA Gold Price PM is not available.
*Futures
Exchanges*
The
most significant gold futures exchanges are the COMEX, a designated contract market within the CME Group, and the Tokyo Commodity
Exchange (TOCOM). The COMEX is the largest exchange in the world for trading precious metals futures and options
and has been trading gold since 1974. The TOCOM has been trading gold since 1982. Trading on these exchanges is based on fixed
delivery dates and transaction sizes for the futures and options contracts traded. Trading costs are negotiable. As a matter of
practice, only a small percentage of the futures market turnover ever comes to physical delivery of the gold represented by the
contracts traded. Both exchanges permit trading on margin. Margin trading can add to the speculative risk involved given the potential
for margin calls if the price moves against the contract holder. The COMEX trades gold futures almost continuously (with one short
break in the evening) through its CME Globex electronic trading system and clears through its central clearing system. On June
6, 2003, TOCOM adopted a similar clearing system. In each case, the exchange acts as a counterparty for each member for clearing
purposes.
*Other
Exchanges*
There
are other gold exchange markets, such as the Istanbul Gold Exchange (trading gold since 1995), the Shanghai Gold Exchange (trading
gold since 2002), the Hong Kong Chinese Gold & Silver Exchange Society (trading gold since 1918) and the Singapore Mercantile
Exchange (trading gold since 2010).
Market
Regulation
The
global gold markets are overseen and regulated by both governmental and self-regulatory organizations. In addition, certain
trade associations have established rules and protocols for market practices and participants. In the United Kingdom,
responsibility for the regulation of the financial market participants, including the major participating members of the
LBMA, falls under the authority of the FCA as provided by the Financial Services and Markets Act 2000 (FSM
Act). Under this act, all U.K.-based banks, together with other investment firms, are subject to a range of
requirements, including fitness and properness, capital adequacy, liquidity, and systems and controls.
The
FCA is responsible for regulating investment products, including derivatives, and those who deal in investment products. Regulation
of spot, commercial forwards, and deposits of gold not covered by the FSM Act is provided for by The London Code of Conduct for
Non-Investment Products, which was established by market participants in conjunction with the Bank of England.
The
TOCOM has authority to perform financial and operational surveillance on its members trading activities, scrutinize positions
held by members and large-scale customers, and monitor the price movements of futures markets by comparing them with cash and
other derivative markets prices. To act as a Futures Commission Merchant Broker on the TOCOM, a broker must obtain a license
from Japans Ministry of Economy, Trade and Industry (METI), the regulatory authority that oversees the operations
of the TOCOM.
7
The
CFTC regulates trading in commodity contracts, such as futures, options and swaps. In addition, under the CEA, the CFTC has jurisdiction
to prosecute manipulation and fraud in any commodity (including precious metals) traded in interstate commerce as spot as well
as deliverable forwards. The CFTC is the exclusive regulator of U.S. commodity exchanges and clearing houses.
Secondary
Market Trading
While
the Trusts investment objective is for the Shares to reflect the performance of the price of gold bullion, less the
Trusts expenses, the Shares may trade in the secondary market on the NYSE Arca at prices that are lower or higher
relative to their net asset value (the value of the Trusts assets less its liabilities (NAV)) per Share.
The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent
trading hours between the NYSE Arca, COMEX and the London and Zurich gold markets. While the Shares trade on the NYSE Arca
until 4:00 PM New York time, liquidity in the global gold market is reduced after the close of the COMEX at 1:30 PM New York
time. As a result, during this time, trading spreads, and the resulting premium or discount, on the Shares may
widen.
Valuation
of Gold 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 gold held by the Trust and determines both the adjusted net asset
value (ANAV) and the NAV of the Trust.
At
the Evaluation Time, the Trustee values the Trusts gold on the basis of that days LBMA Gold Price PM (the USD price
for an ounce of gold set by the LBMA-accredited participating bullion banks or market makers in an electronic, tradable and auditable
over-the-counter auction operated by IBA at 3:00 p.m. London time, on each London business day and disseminated electronically
by IBA to selected major market data vendors, such as Refinitiv and Bloomberg). If no LBMA Gold Price PM is made on such day or
has not been announced by the Evaluation Time the LBMA Gold Price AM announced on that day will be used. If neither price is available
for that day, the Trust will value its gold based on the most recently announced LBMA Gold Price PM or LBMA Gold Price AM, unless
the Sponsor determines that such price is inappropriate as a basis for evaluation. In the event the Sponsor determines that the
LBMA Gold Price PM or such other publicly available price as the Sponsor may deem fairly represents the commercial value of the
Trusts gold is not an appropriate basis for evaluation of the Trusts gold, 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 LBMA Gold Price PM or such other publicly available price is not appropriate as a basis for evaluation of the Trusts
gold or for any determination as to the alternative basis for such evaluation provided that such determination is made in good
faith. See Operation of the Gold Bullion MarketThe London Gold Bullion Market for a description of the LBMA
Gold Price PM.
Once
the value of the gold has been determined, the Trustee subtracts all estimated accrued fees (other than the fees accruing for
such day on which the valuation takes place which 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 gold and any other assets of the Trust. The resulting figure is
the ANAV of the Trust. The ANAV of the Trust is used to compute the Sponsors Fee.
All
fees accruing for the day on which the valuation takes place which are computed by reference to the value of the Trust or its
assets are calculated using the ANAV calculated for such day on which the valuation takes place. The Trustee shall subtract 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).
Any
estimate of the accrued but unpaid fees, expenses and liabilities of the Trust for purposes of computing the NAV of the Trust
and ANAV made by the Trustee in good faith shall be 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
Sponsor and the Shareholders may rely on any evaluation furnished by the Trustee, and the Sponsor has no responsibility for the
evaluations accuracy. The determinations the Trustee makes will be made in good faith upon the basis of, and the Trustee
will not be liable for any errors contained in, information reasonably available to it. The Trustee will not be liable to the
Sponsor, The Depository Trust Company (DTC), Authorized Participants, the Shareholders or any other person for errors
in judgment. However, the preceding liability exclusion will not protect the Trustee against any liability resulting from bad
faith or gross negligence in the performance of its duties.
On
May 23, 2024, the Sponsor entered into an Amendment (the Trust Amendment) to the Depositary Trust Agreement (the
Trust Agreement) with the Trustee. The Trust Amendment reflects the following changes, effective as of June 18,
2024, as approved and directed by the Sponsor on behalf of the Trust: (1) the amendment of the definition of Benchmark
Price to mean, as of any day, (i) such days LBMA Gold Price PM or such days LBMA Gold Price AM if
such days LBMA Gold Price PM is not available; or (ii) such other publicly available price which is reasonably available
to the Trustee at no cost to the Trustee and which the Sponsor may determine fairly represents the commercial value of gold held
by the Trust and instructs the Trustee to use as the Benchmark Price; (2) the replacement of the defined term for London
PM Gold Fix with the defined term LBMA Gold Price PM, which means the price of a troy ounce of gold
as determined by ICE Benchmark Administration, the third party administrator of the London gold price selected by the LBMA, or
any successor administrator of the London gold price, at or about 3:00 p.m. London, England time; and (3) the addition
of the new definition for LBMA Gold Price AM which means the price of a troy ounce of gold as determined
by ICE Benchmark Administration, the third party administrator of the London gold price selected by the LBMA, or any successor
administrator of the London gold price, at or about 10:30 a.m. London, England time.
8
Trust
Expenses
The
Trusts only ordinary recurring expense is the Sponsors Fee. In exchange for the Sponsors Fee, the Sponsor
has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustees monthly fee
and out-of-pocket expenses, the Custodians fee and reimbursement of the Custodians expenses under the Custody Agreements,
Exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses.
The
Sponsors Fee accrues daily at an annualized rate equal to 0.17% of the ANAV of the Trust and is payable monthly in arrears.
The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsors Fee at its discretion for a stated
period of time. Presently, the Sponsor does not intend to waive any of its fee.
Furthermore,
the Sponsor may, in its sole discretion, agree to rebate all or a portion of the Sponsors Fee attributable to Shares held
by institutional investors subject to minimum shareholding and lock up requirements as determined by the Sponsor to foster stability
in the Trusts asset levels. Any such rebate will be subject to negotiation and written agreement between the Sponsor and
the investor on a case by case basis. The Sponsor is under no obligation to provide any rebates of the Sponsors Fee. Neither
the Trust nor the Trustee will be a party to any Sponsors Fee rebate arrangements negotiated by the Sponsor. Any Sponsors
Fee rebate shall be paid from the funds of the Sponsor and not from the assets of the Trust.
The
Sponsors Fee is paid by delivery of gold to an account maintained by the Custodian for the Sponsor on an unallocated basis,
monthly on the first business day of the month in respect of fees payable for the prior month. The delivery is of that number
of ounces of gold which equals the daily accrual of the Sponsors Fee for such prior month calculated at the LBMA Gold Price
PM.
The
Trustee will, when directed by the Sponsor, and, in the absence of such direction, may, in its discretion, sell gold in such quantity
and at such times as may be necessary to permit payment in cash of Trust expenses not assumed by the Sponsor. The Trustee is authorized
to sell gold at such times and in the smallest amounts required to permit such payments as they become due, it being the intention
to avoid or minimize the Trusts holdings of assets other than gold. Accordingly, the amount of gold to be sold will vary
from time to time depending on the level of the Trusts expenses and the market price of gold. The Custodian is authorized
to purchase from the Trust, at the request of the Trustee, gold needed to cover Trust expenses not assumed by the Sponsor at the
price used by the Trustee to determine the value of the gold held by the Trust on the date of the sale.
The
Sponsors Fee for the year ended December 31, 2025 was $9,255,459 (December 31, 2024: $5,595,961; December 31, 2023: $4,543,699).
Cash
held by the Trustee pending payment of the Trusts expenses will not bear any interest. Each delivery or sale of gold by
the Trust to pay the Sponsors Fee or other Trust expenses will be a taxable event to Shareholders.
Creation
and Redemption of Shares
The
Trust creates and redeems Shares from time to time, but only in one or more Baskets (a Basket equals a block of 100,000
shares). 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 physical gold 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 are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered
broker-dealers or other securities market participants, such as banks and other financial institutions, which are not required
to register as broker-dealers to engage in securities transactions, and (2) participants in DTC. To become an Authorized Participant,
a person must enter into an Authorized Participant Agreement with the Sponsor and the Trustee. The Authorized Participant Agreement
provides the procedures for the creation and redemption of Baskets and for the delivery of the gold and any cash required for
such creations and redemptions. The Authorized Participant Agreement and the related procedures attached thereto may be amended
by the Trustee and the Sponsor, without the consent of any Shareholder or Authorized Participant. Authorized Participants pay
a transaction fee of $500 to the Trustee for each order they place to create or redeem one or more Baskets. Authorized Participants
who make deposits with the Trust in exchange for Baskets receive no fees, commissions or other form of compensation or inducement
of any kind from either the Sponsor or the Trust for serving as an Authorized Participant, and no such person has any obligation
or responsibility to the Sponsor or the Trust to effect any sale or resale of Shares.
9
Authorized
Participants are cautioned that some of their activities will result in their being deemed participants in a distribution in a
manner which would render them statutory underwriters and subject them to the prospectus-delivery and liability provisions of
the Securities Act.
Prior
to initiating any creation or redemption order, an Authorized Participant must have entered into an agreement with the
Custodian or a gold clearing bank to establish an Authorized Participant Unallocated Account in London (Authorized
Participant Unallocated Bullion Account Agreement). Gold held in Authorized Participant Unallocated Accounts is
typically not segregated from the Custodians or other gold clearing banks assets, as a consequence of which an
Authorized Participant will have no proprietary interest in any specific bars of gold held by the Custodian or the clearing
bank. Credits to its Authorized Participant Unallocated Account are therefore at risk of the Custodians or other gold
clearing banks insolvency. No fees will be charged by the Custodian for the use of the Authorized Participant
Unallocated Account as long as the Authorized Participant Unallocated Account is used solely for gold transfers to and from
the Trust Unallocated Account and the Custodian (or one of its affiliates) receives compensation for maintaining the Trust
Allocated Account. Authorized Participants should be aware that the Custodians liability threshold under the
Authorized Participant Unallocated Bullion Account Agreement is generally gross negligence, not negligence, which is the
Custodians liability threshold under the Trusts Custody Agreements.
As
the terms of the Authorized Participant Unallocated Bullion Account Agreement differ in certain respects from the terms of the
Trusts Unallocated Account Agreement, potential Authorized Participants should review the terms of the Authorized Participant
Unallocated Bullion Account Agreement carefully. A copy of the Authorized Participant Agreement may be obtained by potential Authorized
Participants from the Trustee.
Certain
Authorized Participants are expected to have the facility to participate directly in the physical gold market and the gold futures
markets. In some cases, an Authorized Participant may from time to time acquire gold from or sell gold to its affiliated gold
trading desk, which may profit in these instances. Each Authorized Participant must be registered as a broker-dealer under the
Securities Exchange Act of 1934 (Exchange Act) and regulated by FINRA or be exempt from being or otherwise not be
required to be so regulated or registered, and must be qualified to act as a broker or dealer in the states or other jurisdictions
where the nature of its business so requires. Certain Authorized Participants are regulated under federal and state banking laws
and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers
as it determines is appropriate in light of its own regulatory regime.
Authorized
Participants may act for their own accounts or as agents for broker-dealers, custodians and other securities market participants
that wish to create or redeem Baskets. An order for one or more Baskets may be placed by an Authorized Participant on behalf of
multiple clients. As of the date of this report, Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC,
Merrill Lynch Professional Clearing Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. Inc., Scotia Capital (USA) Inc.,
UBS Securities LLC and Virtu Americas, LLC have each signed an Authorized Participant Agreement with the Trust and, upon the effectiveness
of such agreement, may create and redeem Baskets as described above. Persons interested in purchasing Baskets should contact the
Sponsor or the Trustee to obtain the contact information for the Authorized Participants. Shareholders who are not Authorized
Participants are only able to redeem their Shares through an Authorized Participant.
All
gold is delivered to the Trust and distributed by the Trust in unallocated form through credits and debits between Authorized
Participant Unallocated Accounts and the Trust Unallocated Account. Gold transferred from an Authorized Participant Unallocated
Account to the Trust in unallocated form will first be credited to the Trust Unallocated Account. Thereafter, the Custodian will
allocate specific bars of gold representing the amount of gold credited to the Trust Unallocated Account (to the extent such amount
is representable by whole gold bars) to the Trust Allocated Account. The movement of gold is reversed for the distribution of
gold to an Authorized Participant in connection with the redemption of Baskets.
All
physical gold represented by a credit to any Authorized Participant Unallocated Account and to the Trust Unallocated Account and
all physical gold held in the Trust Allocated Account with the Custodian must be of at least a minimum fineness (or purity) of
995 parts per 1,000 (99.5%) and otherwise conform to the rules, regulations practices and customs of the LBMA, including the specifications
for a London Good Delivery Bar.
Under
the Authorized Participant Agreement, the Sponsor has agreed to indemnify the Authorized Participants against certain liabilities,
including liabilities under the Securities Act.
The
following description of the procedures for the creation and redemption of Baskets is only a summary and an investor should refer
to the relevant provisions of the Trust Agreement and the form of Authorized Participant Agreement for more detail.
10
Creation
Procedures
On
any business day, an Authorized Participant may place an order with the Trustee to create one or more Baskets. Creation and redemption
orders are accepted on business days the NYSE Arca is open for regular trading. Settlements of such orders requiring
receipt or delivery, or confirmation of receipt or delivery, of gold in the United Kingdom, or another jurisdiction will occur
on business days when (1) banks in the United Kingdom or other jurisdiction and (2) the London gold markets are
regularly open for business. If such banks or the London gold markets are not open for regular business for a full day, such a
day will only be a business day for settlement purposes if the settlement procedures can be completed by the end
of such day. Settlement of orders requiring receipt or delivery, or confirmation of receipt or delivery, of Shares will occur,
after confirmation of the applicable gold delivery, on business days when the NYSE Arca is open for regular trading.
Purchase orders must be placed no later than 3:59:59 p.m. on each business day the NYSE Arca is open for regular trading. In the
event of a level 3 market-wide circuit breaker resulting in a trading halt for the remainder of the trading day, the time of the
market-wide trading halt is considered the close of regular trading and no creation orders for the current trade date will be
accepted after that time (the cutoff). Orders placed after the cutoff will be deemed to be rejected and will not
be processed. Orders should be placed in proper form on the following business day. Purchase orders must be placed no later than
3:59:59 p.m. on each business day the NYSE Arca is open for regular trading.
By
placing a purchase order, an Authorized Participant agrees to deposit gold with the Trust. Prior to the delivery of Baskets for
a purchase order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for the
purchase order.
*Determination
of required deposits*
The
amount of gold in the required deposit is determined by dividing the number of ounces of gold held by the Trust by the
number of Baskets outstanding, as adjusted for the amount of gold constituting estimated accrued but unpaid fees and expenses
of the Trust. Fractions of a fine ounce of gold smaller than 0.001 of a fine ounce which are included in the deposit amount
are disregarded in the foregoing calculation. All questions as to the composition of a Creation Basket Deposit will be
finally determined by the Trustee. The Trustees determination of the Creation Basket Deposit shall be final and
binding on all persons interested in the Trust.
*Delivery
of required deposits*
An
Authorized Participant who places a purchase order is responsible for crediting its Authorized Participant Unallocated Account
with the required gold deposit amount by the prescribed settlement date in London. Upon receipt of the gold deposit amount, the
Custodian, after receiving appropriate instructions from the Authorized Participant and the Trustee, will transfer on the prescribed
settlement date the gold deposit amount from the Authorized Participant Unallocated Account to the Trust Unallocated Account and
the Trustee will direct DTC to credit the number of Baskets ordered to the Authorized Participants DTC account. The expense
and risk of delivery, ownership and safekeeping of gold until such gold has been received by the Trust shall be borne solely by
the Authorized Participant. The Trustee may accept delivery of gold by such other means as the Sponsor, from time to time, may
determine with the Trustee to be acceptable for the Trust, provided that the same is disclosed in a prospectus relating to the
Trust filed with the SEC pursuant to Rule 424 under the Securities Act. If gold is to be delivered other than as described above,
the Sponsor is authorized to establish such procedures and to appoint such custodians and establish such custody accounts in addition
to those described in this report, as the Sponsor determines to be desirable.
Acting
on standing instructions given by the Trustee, the Custodian will transfer the gold deposit amount from the Trust Unallocated
Account to the Trust Allocated Account by transferring gold bars from its inventory, to the Trust Allocated Account. The Custodian
uses commercially reasonable efforts to complete the transfer of gold to the Trust Allocated Account prior to the time by which
the Trustee is to credit the Basket to the Authorized Participants DTC account; if, however, such transfers have not been
completed by such time, the number of Baskets ordered will be delivered against receipt of the gold deposit amount in the Trust
Unallocated Account, and all Shareholders will be exposed to the risks of unallocated gold to the extent of that gold deposit
amount until the Custodian completes the allocation process. See Risk Factorsgold held in the Trusts unallocated
gold account and any Authorized Participants unallocated gold account will not be segregated from the Custodians
assets....
Because
gold is only allocated in multiples of whole bars, the amount of gold allocated from the Trust Unallocated Account to the Trust
Allocated Account may be less than the total fine ounces of gold credited to the Trust Unallocated Account. Any balance will be
held in the Trust Unallocated Account. The Custodian uses commercially reasonable efforts to minimize the amount of gold held
in the Trust Unallocated Account; no more than 430 fine troy ounces of gold (maximum weight to make one London Good Delivery Bar)
is expected to be held in the Trust Unallocated Account at the close of each business day.
*Rejection
of purchase orders*
The
Trustee may reject a purchase order or a Creation Basket Deposit if such order or Creation Basket Deposit is not presented in
proper form as described in the Authorized Participant Agreement or if the fulfillment of the order, in the opinion of counsel,
might be unlawful. None of the Trustee, the Sponsor or the Custodian will be liable for the rejection of any purchase order or
Creation Basket Deposit.
11
Redemption
Procedures
The
procedures by which an Authorized Participant can redeem one or more Baskets will mirror the procedures for the creation of Baskets.
On any business day, an Authorized Participant may place an order with the Trustee to redeem one or more Baskets. Redemption orders
must be placed no later than 3:59:59 p.m. on each business day the NYSE Arca is open for regular trading. In the event of a level
3 market-wide circuit breaker resulting in a trading halt for the remainder of the trading day, the time of the market-wide trading
halt is considered the close of regular trading and no redemption orders for the current trade date will be accepted after that
time (the cutoff). Orders placed after the cutoff will be deemed to be rejected and will not be processed. Orders
should be placed in proper form on the following business day. A redemption order so received is effective on the date it is received
in satisfactory form by the Trustee. The redemption procedures allow Authorized Participants to redeem Baskets and do not entitle
an individual Shareholder to redeem any Shares in an amount less than a Basket, or to redeem Baskets other than through an Authorized
Participant.
By
placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTCs book-entry
system to the Trust by the prescribed settlement date. Prior to the delivery of the redemption distribution for a redemption order,
the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for the redemption order.
*Determination
of redemption distribution*
The
redemption distribution from the Trust consists of a credit to the redeeming Authorized Participants Authorized Participant
Unallocated Account, loco London, representing the amount of the gold held by the Trust evidenced by the Shares being redeemed.
Fractions of a fine ounce of gold included in the redemption distribution smaller than 0.001 of a fine ounce are disregarded.
Redemption distributions will be subject to the deduction of any applicable tax or other governmental charges which may be due.
*Delivery
of redemption distribution*
The
redemption distribution due from the Trust will be delivered to the Authorized Participant on the prescribed settlement date following
a loco London redemption order date if, by 10:00 a.m. New York time on the settlement date, the Trustees DTC account has
been credited with the Baskets to be redeemed. If a loco swap or physical transfer is necessary to effect a loco London redemption,
the redemption distribution due from the Trust will be delivered to the Authorized Participant on or before the prescribed settlement
date if, by 10:00 a.m. New York time on the prescribed settlement date, the Trustees DTC account has been credited with
the Baskets to be redeemed. In the event that, by 10:00 a.m. New York time on the prescribed settlement date, the Trustees
DTC account has not been credited with the total number of Shares corresponding to the total number of Baskets to be redeemed
pursuant to such redemption order, the Trustee shall send to the Authorized Participant and the Custodian via fax or electronic
mail message notice of such fact and the Authorized Participant shall have one business day following receipt of such notice to
correct such failure. If such failure is not cured within such one business day period, the Trustee (in consultation with the
Sponsor) will cancel such redemption order and will send via fax or electronic mail message notice of such cancellation to the
Authorized Participant and the Custodian, and the Authorized Participant will be solely responsible for all costs incurred by
the Trust, the Trustee or the Custodian related to the cancelled order. The Trustee is also authorized to deliver the redemption
distribution notwithstanding that the Baskets to be redeemed are not credited to the Trustees DTC account by 10:00 a.m.
New York time on the prescribed settlement date if the Authorized Participant has collateralized its obligation to deliver the
Baskets through DTCs book entry system on such terms as the Sponsor and the Trustee may from time to time agree upon.
The
Custodian transfers the redemption gold amount from the Trust Allocated Account to the Trust Unallocated Account and, thereafter,
to the redeeming Authorized Participants Authorized Participant Unallocated Account. The Authorized Participant and the
Trust are each at risk in respect of gold credited to their respective unallocated accounts in the event of the Custodians
insolvency. See Risk Factorsgold held in the Trusts unallocated gold account and any Authorized Participants
unallocated gold account is not segregated from the Custodians assets...
As
with the allocation of gold to the Trust Allocated Account which occurs upon a purchase order, if in transferring gold from the
Trust Allocated Account to the Trust Unallocated Account in connection with a redemption order there is an excess amount of gold
transferred to the Trust Unallocated Account, the excess over the gold redemption amount will be held in the Trust Unallocated
Account. The Custodian uses commercially reasonable efforts to minimize the amount of gold held in the Trust Unallocated Account;
no more than 430 fine troy ounces of gold (maximum weight to make one London Good Delivery Bar) is expected to be held in the
Trust Unallocated Account at the close of each business day.
*Suspension
or rejection of redemption orders*
The
Trustee may, in its discretion, and will when directed by the Sponsor, suspend the right of redemption, or postpone the redemption
settlement date, (1) for any period during which the NYSE Arca is closed other than customary weekend or holiday closings, or
trading on the NYSE Arca is suspended or restricted or (2) for any period during which an emergency exists as a result of which
delivery, disposal or evaluation of gold is not reasonably practicable. None of the Sponsor, the Trustee or the Custodian are
liable to any person or in any way for any loss or damages that may result from any such suspension or postponement.
12
The
Trustee will reject a redemption order if the order is not in proper form as described in the Authorized Participant Agreement
or if the fulfillment of the order, in the opinion of its counsel, might be unlawful.
Creation
and Redemption Transaction Fee
To
compensate the Trustee for services in processing the creation and redemption of Baskets, an Authorized Participant is required
to pay a transaction fee to the Trustee of $500 per order to create or redeem Baskets. An order may include multiple Baskets.
The transaction fee may be reduced, increased or otherwise changed by the Trustee with the consent of the Sponsor. From time to
time, the Trustee, with the consent of the Sponsor, may waive all or a portion of the applicable transaction fee. The Trustee
shall notify DTC of any agreement to change the transaction fee and will not implement any increase in the fee for the redemption
of Baskets until 30 days after the date of the notice.
The
Sponsor
The
Trusts Sponsor is abrdn ETFs Sponsor LLC (known as Aberdeen Standard Investments ETFs Sponsor LLC prior to March 1, 2022
and ETF Securities USA LLC prior to October 1, 2018), a Delaware limited liability company formed on June 17, 2009.
The
Sponsors office is located at c/o abrdn ETFs Sponsor LLC, 1900 Market Street, Suite 200, Philadelphia, PA 19103. Prior
to April 27, 2018, the Sponsor was wholly-owned by ETF Securities Limited, a Jersey, Channel Islands based company. Effective
April 27, 2018, ETF Securities Limited sold its membership interest in the Sponsor to abrdn Inc. (known as Aberdeen Standard Investments
Inc. prior to January 1, 2022), a Delaware corporation. As a result of the sale, abrdn Inc. became the sole member of the Sponsor.
abrdn Inc. is a wholly-owned indirect subsidiary of Aberdeen Group plc. ("Aberdeen"). Aberdeen has retained "abrdn" as an operational abbreviation across its subsidiary legal entities (including
the Sponsor, fund names and descriptors). Under the Delaware Limited Liability Company Act and the governing documents of the Sponsor,
the sole member of the Sponsor, abrdn Inc., is not responsible for the debts, obligations and liabilities of the Sponsor solely
by reason of being the sole member of the Sponsor.
*The
Sponsors Role*
The
Sponsor arranged for the creation of the Trust, and is generally responsible for the ongoing registration of the Shares for their
public offering in the United States and the listing of the Shares on the NYSE Arca. The Sponsor has agreed to assume the organizational
expenses of the Trust and the following administrative and marketing expenses incurred by the Trust: the Trustees monthly
fee and out-of-pocket expenses, the Custodians fee and the reimbursement of the Custodians expenses under the Custody
Agreements, exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum
in legal expenses. The Sponsor also paid the costs of the Trusts organization and the initial sale of the Shares, including
the applicable SEC registration fees.
The
Sponsor does not exercise day-to-day oversight over the Trustee or the Custodian. The Sponsor may remove the Trustee and appoint
a successor Trustee (i) if the Trustee ceases to meet certain objective requirements (including the requirement that it have capital,
surplus and undivided profits of at least $150 million), (ii) if, having received written notice of a material breach of its obligations
under the Trust Agreement, the Trustee has not cured the breach within 30 days, or (iii) if the Trustee refuses to consent to
the implementation of an amendment to the Trusts initial Internal Control Over Financial Reporting. The Sponsor also has
the right to replace the Trustee during the 90 days following any merger, consolidation or conversion in which the Trustee is
not the surviving entity or, in its discretion, on the fifth anniversary of the creation of the Trust or on any subsequent third
anniversary thereafter. The Sponsor also has the right to approve any new or additional custodian that the Trustee may wish to
appoint and any new or additional sub-custodian that the Custodian may wish to appoint.
The
Sponsor or one of its affiliates or agents (1) develops a marketing plan for the Trust on an ongoing basis, (2) prepares marketing
materials regarding the Shares, including the content of the Trusts website and (3) executes the marketing plan for the
Trust.
The
Trustee
The
Bank of New York Mellon, a banking corporation organized under the laws of the State of New York with trust powers (BNYM),
serves as the Trustee. BNYM has a Trust office at 240 Greenwich Street, New York, NY 10286. BNYM is subject to supervision by
the New York State Financial Services Department and the Board of Governors of the Federal Reserve System. Information regarding
creation and redemption Basket composition, NAV of the Trust, transaction fees and the names of the parties that have each executed
an Authorized Participant Agreement may be obtained from BNYM. A copy of the Trust Agreement is available for inspection at BNYMs
trust office identified above. Under the Trust Agreement, the Trustee is required to have capital, surplus and undivided profits
of at least $150 million. As of December 31, 2025, the Trustee was in compliance with these conditions.
*The
Trustees Role*
The
Trustee is generally responsible for the day-to-day administration of the Trust, including keeping the Trusts operational
records. The Trustees principal responsibilities include (1) transferring the Trusts gold as needed to pay the Sponsors
Fee in gold (gold transfers are expected to occur approximately monthly in the ordinary course), (2) valuing the Trusts
gold and calculating the NAV of the Trust and the NAV per Share, (3) receiving and processing orders from Authorized Participants
to create and redeem Baskets and coordinating the processing of such orders with the Custodian and DTC, (4) selling the Trusts
gold as needed to pay any extraordinary Trust expenses that are not assumed by the Sponsor, (5) when appropriate, making distributions
of cash or other property to Shareholders, and (6) receiving and reviewing reports from or on the Custodians custody of
and transactions in the Trusts gold. The Trustee shall, with respect to directing the Custodian, act in accordance with
the instructions of the Sponsor. If the Custodian resigns, the Trustee shall appoint an additional or replacement Custodian selected
by the Sponsor.
13
The
Trustee intends to regularly communicate with the Sponsor to monitor the overall performance of the Trust. The Trustee does not
monitor the performance of the Custodian or any other sub-custodian other than to review the reports provided by the Custodian
pursuant to the Custody Agreements. The Trustee, along with the Sponsor, will liaise with the Trusts legal, accounting
and other professional service providers as needed. The Trustee will assist and support the Sponsor with the preparation of all
periodic reports required to be filed with the SEC on behalf of the Trust.
The
Trustees monthly fees and out-of-pocket expenses are paid by the Sponsor.
Affiliates
of the Trustee may from time to time act as Authorized Participants or purchase or sell gold or Shares for their own account,
as agent for their customers and for accounts over which they exercise investment discretion. Affiliates of the Trustee are subject
to the same transaction fee as other Authorized Participants.
The
Custodian
Effective
May 23, 2024, the Trustee, at the direction of the Sponsor, entered into an Allocated Account Agreement and Unallocated Account
Agreement with ICBC, providing for the custody of the Trusts gold. Effective August 8, 2024, JPMorgan Chase Bank N.A. no
longer serves as a custodian of the Trusts gold. ICBC, a public limited company incorporated under the laws of England
and Wales, serves as a Custodian of the Trusts gold. ICBCs office is located at 20 Gresham Street, London, EC2V
7JE, United Kingdom.
*The
Custodians Role*
The
Custodian is responsible for the safekeeping of the Trusts gold deposited with it by Authorized Participants in connection
with the creation of Baskets. The Custodian facilitates the transfer of gold in and out of the Trust through the unallocated gold
accounts it maintains for each Authorized Participant and the unallocated and allocated gold accounts it maintains for the Trust.
The Custodian holds at its London, England vault premises, that portion of the Trusts allocated gold to be held in London.
The Custodian is responsible for allocating specific bars of physical gold to the Trusts allocated gold account. The Custodian
provides the Trustee with regular reports detailing the gold transfers in and out of the Trusts unallocated and allocated
gold accounts and identifying the gold bars held in the Trusts allocated gold account.
The
Custodians fees and expenses under the Custody Agreements are paid by the Sponsor.
The
Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell gold or Shares for their
own account, as agent for their customers and for accounts over which they exercise investment discretion. The Custodian and its
affiliates are subject to the same transaction fee as other Authorized Participants.
Inspection
of Gold
Under
the Custody Agreements, the Trustee, the Sponsor and the Trusts auditors and inspectors may, only up to twice a year, visit
the premises of the Custodian for the purpose of examining the Trusts gold and certain related records maintained by the
Custodian. The Trustee and the Sponsor have no right to visit the premises of any sub-custodian for the purposes of examining
the Trusts gold or any records maintained by the sub-custodian, and no sub-custodian is obligated to cooperate in any review
the Trustee or the Sponsor may wish to conduct of the facilities, procedures, records or creditworthiness of such sub-custodian.
The
Sponsor has exercised its right to visit the Custodian in order to examine the gold and the records maintained by the Custodian.
An inspection was conducted by Bureau Veritas Commodities UK Ltd, a leading commodity inspection and testing company retained
by the Sponsor, as of August 4, 2025 and January 5, 2026. The results can be found on www.abrdn.com/usa/etf
There
can be no guarantee that the Sponsor or the Trusts auditors and inspectors will be able to perform physical inspections
of the Trusts gold as planned. Local policies, regulations, or ordinances, as well as polices or restrictions adopted by
the Custodian, or any sub-custodian, may temporarily prevent, or otherwise impair the ability of, the Sponsor or the Trusts
auditors and inspectors, from performing a physical inspection of the Trusts gold on a desired date. In those situations,
the Sponsor or the Trusts auditors and inspectors may seek to verify the gold held by the Trust by alternate means, including
through virtual inspections of the Trusts gold and/or a review of pertinent records.
14
Description
of the Shares
*General*
The
Trustee is authorized under the Trust Agreement to create and issue an unlimited number of Shares. The Trustee creates Shares
only in Baskets (a Basket equals a block of 100,000 Shares) and only upon the order of an Authorized Participant. The Shares represent
units of fractional undivided beneficial interest in and ownership of the Trust and have no par value. Any creation and issuance
of Shares above the amount registered on the Trusts then-current and effective registration statement with the SEC will
require the registration of such additional Shares.
*Description
of Limited Rights*
The
Shares do not represent a traditional investment and Shareholders should not view them as similar to shares of a corporation operating
a business enterprise with management and a board of directors. Shareholders do not have the statutory rights normally associated
with the ownership of shares of a corporation, including, for example, the right to bring oppression or derivative
actions. All Shares are of the same class with equal rights and privileges. Each Share is transferable, is fully paid and non-assessable
and entitles the holder to vote on the limited matters upon which Shareholders may vote under the Trust Agreement. The Shares
do not entitle their holders to any conversion or pre-emptive rights, or, except as provided below, any redemption rights or rights
to distributions.
*Distributions*
If
the Trust is terminated and liquidated, the Trustee will distribute to the Shareholders any amounts remaining after the satisfaction
of all outstanding liabilities of the Trust and the establishment of such reserves for applicable taxes, other governmental charges
and contingent or future liabilities as the Trustee shall determine. Shareholders of record on the record date fixed by the Trustee
for a distribution will be entitled to receive their pro rata portion of any distribution.
*Voting
and Approvals*
Under
the Trust Agreement, Shareholders have no voting rights, except in limited circumstances. The Trustee may terminate the Trust
upon the agreement of Shareholders owning at least 75% of the outstanding Shares. In addition, certain amendments to the Trust
Agreement require advance notice to the Shareholders before the effectiveness of such amendments, but no Shareholder vote or approval
is required for any amendment to the Trust Agreement.
*Redemption
of the Shares*
The
Shares may only be redeemed by or through an Authorized Participant and only in Baskets.
*Book-Entry
Form*
Individual
certificates will not be issued for the Shares. Instead, one or more global certificates is deposited by the Trustee with
DTC and registered in the name of Cede & Co., as nominee for DTC. The global certificates evidence all of the Shares
outstanding at any time. Under the Trust Agreement, Shareholders are limited to (1) participants in DTC such as banks,
brokers, dealers and trust companies (DTC Participants), (2) those who maintain, either directly or indirectly, a custodial
relationship with a DTC Participant (Indirect Participants), and (3) those banks, brokers, dealers, trust companies and
others who hold interests in the Shares through DTC Participants or Indirect Participants. The Shares are only transferable
through the book-entry system of DTC. Shareholders who are not DTC Participants may transfer their Shares through DTC by
instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity through
which their Shares are held) to transfer the Shares. Transfers will be made in accordance with standard securities industry
practice.
Custody
of the Trusts Gold
Custody
of the gold bullion deposited with and held by the Trust is provided by the Custodian at the London, England vaults of the Custodian
and by other sub-custodians on a temporary basis. The Custodian is a market maker, clearer and approved weigher under the rules
of the LBMA.
The
Custodian is the custodian of the gold bullion credited to the Trust Allocated Account in accordance with the Custody Agreements.
The Custodian segregates the gold bullion credited to the Trust Allocated Account from any other precious metal it holds or holds
for others by entering appropriate entries in its books and records. Under the Custody Agreements, the Trustee, the Sponsor and
the Trusts auditors and inspectors may inspect the vaults of the Custodian. See *Inspection of Gold*.
15
The
Custodian, as instructed by the Trustee on behalf of the Trust, is authorized to accept, on behalf of the Trust, deposits of gold
in unallocated form. Acting on standing instructions given by the Trustee specified in the Custody Agreements, the Custodian allocates
gold deposited in unallocated form with the Trust by selecting bars of gold bullion for deposit to the Trust Allocated Account.
All gold bullion allocated to the Trust must conform to the rules, regulations, practices and customs of the LBMA, and the Custodian
must replace any non-conforming gold bullion with conforming gold bullion as soon as practical upon a determination by the Custodian
any gold bullion is non-conforming.
The
process of withdrawing gold from the Trust for a redemption of a Basket follows the same general procedure as for depositing gold
with the Trust for a creation of a Basket, only in reverse. Each transfer of gold between the Trust Allocated Account and the
Trust Unallocated Account connected with a creation or redemption of a Basket may result in a small amount of gold being held
in the Trust Unallocated Account after the completion of the transfer. In making deposits and withdrawals between the Trust Allocated
Account and the Trust Unallocated Account, the Custodian will use commercially reasonable efforts to minimize the amount of gold
held in the Trust Unallocated Account as of the close of each business day. See Creation and Redemption of Shares.
United
States Federal Income Tax Consequences
The
following discussion of the material US federal income tax consequences generally applies to the purchase, ownership and
disposition of Shares by a US Shareholder (as defined below) and certain US federal income tax consequences that may apply to
an investment in Shares by a Non-US Shareholder (as defined below). The discussion is based on the United States Internal
Revenue Code of 1986 as amended (the Code). The discussion below is based on the Code, United States Treasury
Regulations (Treasury Regulations) promulgated under the Code and judicial and administrative interpretations
of the Code, all as in effect on the date of this annual report and all of which are subject to change either prospectively
or retroactively. The tax treatment of Shareholders may vary depending upon their own particular circumstances. Certain
Shareholders (including broker-dealers, traders, banks and other financial institutions, insurance companies, real estate
investment trusts, tax-exempt entities, Shareholders whose functional currency is not the U.S. Dollar or other investors with
special circumstances) may be subject to special rules not discussed below. In addition, the following discussion applies
only to investors who hold Shares as capital assets within the meaning of Code section 1221 and not as part of
a straddle, hedging transaction or a conversion or constructive sale transaction. Moreover, the discussion below does not
address the effect of any state, local or foreign tax law or any transfer tax on an owner of Shares. Purchasers of Shares are
urged to consult their own tax advisors with respect to all federal, state, local and foreign tax law or any transfer tax
considerations potentially applicable to their investment in Shares.
For
purposes of this discussion, a US Shareholder is a Shareholder that is:
|
| An
individual who is a citizen or resident of the United States; | |
|
| A
corporation (or other entity treated as a corporation for US federal tax purposes) created
or organized in or under the laws of the United States or any political subdivision thereof; | |
|
| An
estate, the income of which is includible in gross income for US federal income tax purposes
regardless of its source; or | |
|
| A
trust, if a court within the United States is able to exercise primary supervision over
the administration of the trust and one or more US persons have the authority to control
all substantial decisions of the trust. | |
*Taxation
of the Trust*
The
Trust is classified as a grantor trust for US federal income tax purposes. As a result, the Trust itself is not
subject to US federal income tax. Instead, the Trusts income and expenses flow through to the Shareholders,
and the Trustee reports the Trusts income, gains, losses and deductions to the Internal Revenue Service (IRS)
on that basis.
A
Shareholder that is not a US Shareholder as defined above (other than a partnership, or an entity treated as a partnership for
US federal tax purposes) generally is considered a Non-US Shareholder for purposes of this discussion. For US federal
income tax purposes, the treatment of any beneficial owner of an interest in a partnership, including any entity treated as a
partnership for US federal income tax purposes, generally depends upon the status of the partner and upon the activities of the
partnership. Partnerships and partners in partnerships should consult their tax advisors about the US federal income tax consequences
of purchasing, owning and disposing of Shares.
*Taxation
of US Shareholders*
Shareholders
generally are treated, for US federal income tax purposes, as if they directly owned a pro rata share of the underlying assets
held by the Trust. Shareholders are also treated as if they directly received their respective pro rata share of the Trusts
income, if any, and as if they directly incurred their respective pro rata share of the Trusts expenses. In the case of
a Shareholder that purchases Shares for cash, its initial tax basis in its pro rata share of the assets held in the Trust at the
time it acquires its Shares is equal to its cost of acquiring the Shares. In the case of a Shareholder that acquires its Shares
as part of a creation of a Basket, the delivery of gold to the Trust in exchange for the Shares is not a taxable event to the
Shareholder, and the Shareholders tax basis and holding period for the Shares are the same as its tax basis and holding
period for the gold delivered in exchange therefore (except to the extent of any cash contributed for such Shares). For purposes
of this discussion, it is assumed that all of a Shareholders Shares are acquired on the same date and at the same price
per Share. Shareholders that hold multiple lots of Shares, or that are contemplating acquiring multiple lots of Shares, should
consult their tax advisors.
16
When
the Trust sells or transfers gold, for example to pay expenses, a Shareholder generally will recognize gain or loss in an amount
equal to the difference between (1) the Shareholders pro rata share of the amount realized by the Trust upon the sale or
transfer and (2) the Shareholders tax basis for its pro rata share of the gold that was sold or transferred. Such gain
or loss will generally be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period
in its Shares of longer than one year. A Shareholders tax basis for its share of any gold sold by the Trust generally will
be determined by multiplying the Shareholders total basis for its Shares immediately prior to the sale, by a fraction the
numerator of which is the amount of gold sold, and the denominator of which is the total amount of the gold held by the Trust
immediately prior to the sale. After any such sale, a Shareholders tax basis for its pro rata share of the gold remaining
in the Trust will be equal to its tax basis for its Shares immediately prior to the sale, less the portion of such basis allocable
to its share of the gold that was sold.
Upon
a Shareholders sale of some or all of its Shares, the Shareholder will be treated as having sold a pro rata share of the
gold held in the Trust at the time of the sale. Accordingly, the Shareholder generally will recognize a gain or loss on the sale
in an amount equal to the difference between (1) the amount realized pursuant to the sale of the Shares, and (2) the Shareholders
tax basis for the Shares sold, as determined in the manner described in the preceding paragraph.
A
redemption of some or all of a Shareholders Shares in exchange for the underlying gold represented by the Shares redeemed
generally will not be a taxable event to the Shareholder. The Shareholders tax basis for the gold received in the redemption
generally will be the same as the Shareholders tax basis for the Shares redeemed. The Shareholders holding period
with respect to the gold received should include the period during which the Shareholder held the Shares redeemed. A subsequent
sale of the gold received by the Shareholder will be a taxable event.
An
Authorized Participant and other investors may be able to re-invest, on a tax-deferred basis, in-kind redemption proceeds received
from exchange-traded products that are substantially similar to the Trust in the Trusts Shares. Authorized Participants
and other investors should consult their tax advisors as to whether and under what circumstances the reinvestment in the Shares
of proceeds from substantially similar exchange-traded products can be accomplished on a tax-deferred basis.
Under
current law, gains recognized by individuals, estates or trusts from the sale of collectibles, including physical
gold, held for more than one year are taxed at a maximum federal income tax rate of 28%, rather than the 20% rate applicable to
most other long-term capital gains. For these purposes, gains recognized by an individual upon the sale of Shares held for more
than one year, or attributable to the Trusts sale of any physical gold which the Shareholder is treated (through its ownership
of Shares) as having held for more than one year, generally will be taxed at a maximum rate of 28%. The tax rates for capital
gains recognized upon the sale of assets held by an individual US Shareholder for one year or less or by a corporate taxpayer
are generally the same as those at which ordinary income is taxed.
In
addition, high-income individuals and certain trusts and estates are subject to a 3.8% Medicare contribution tax that is imposed
on net investment income and gain. Shareholders should consult their tax advisor regarding this tax.
*Brokerage
Fees and Trust Expenses*
Any
brokerage or other transaction fees incurred by a Shareholder in purchasing Shares is treated as part of the Shareholders
tax basis in the Shares. Similarly, any brokerage fee incurred by a Shareholder in selling Shares reduces the amount realized
by the Shareholder with respect to the sale.
Shareholders
will be required to recognize a gain or loss upon a sale of gold by the Trust (as discussed above), even though some or all of
the proceeds of such sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective pro rata share
of each expense incurred by the Trust to the same extent as if they directly incurred the expense. Shareholders who are individuals,
estates or trusts, however, may be required to treat some or all of the expenses of the Trust, to the extent that such expenses
may be deducted, as miscellaneous itemized deductions. Miscellaneous itemized deductions, including expenses for the production
of income, will not be deductible for either regular federal income tax or alternative minimum tax purposes for taxable years
beginning after December 31, 2017 and before January 1, 2026 and thereafter generally are (i) deductible only to the extent that
the aggregate of a Shareholders miscellaneous itemized deductions exceeds 2% of such Shareholders adjusted gross
income for federal income tax purposes, (ii) not deductible for the purposes of the alternative minimum tax and (iii) are subject
to the overall limitation on itemized deductions under the Code.
17
*Investment
by Regulated Investment Companies*
Mutual
funds and other investment vehicles which are regulated investment companies within the meaning of Code section
851 should consult with their tax advisors concerning (1) the likelihood that an investment in Shares, although they are a security
within the meaning of the Investment Company Act of 1940, may be considered an investment in the underlying gold for purposes
of Code section 851(b), and (2) the extent to which an investment in Shares might nevertheless be consistent with preservation
of their qualification under Code section 851. In administrative guidance, the IRS stated that it will no longer issue rulings
under Code section 851(b) relating to the determination of whether or not an instrument or position is a security,
but, instead, intends to defer to guidance from the SEC for such determination.
*United
States Information Reporting and Backup Withholding Tax for US and Non-US Shareholders*
The
Trustee or the appropriate broker will file certain information returns with the IRS, and provides certain tax-related information
to Shareholders, in accordance with applicable Treasury Regulations. Each Shareholder will be provided with information regarding
its allocable portion of the Trusts annual income (if any) and expenses.
A
US Shareholder may be subject to US backup withholding tax in certain circumstances unless it provides its taxpayer identification
number and complies with certain certification procedures. Non-US Shareholders may have to comply with certification procedures
to establish that they are not a US person in order to avoid the backup withholding tax.
The
amount of any backup withholding tax will be allowed as a credit against a Shareholders US federal income tax liability
and may entitle such a Shareholder to a refund, provided that the required information is furnished to the IRS.
*Income
Taxation of Non-US Shareholders*
The
Trust does not expect to generate taxable income except for gains (if any) upon the sale of gold. A Non-US Shareholder generally
is not subject to US federal income tax with respect to gains recognized upon the sale or other disposition of Shares, or upon
the sale of gold by the Trust, unless (1) the Non-US Shareholder is an individual and is present in the United States for 183
days or more during the taxable year of the sale or other disposition, and the gain is treated as being from United States sources;
or (2) the gain is effectively connected with the conduct by the Non-US Shareholder of a trade or business in the United States.
*Taxation
in Jurisdictions other than the United States*
Prospective
purchasers of Shares that are based in or acting out of a jurisdiction other than the United States are advised to consult their
own tax advisers as to the tax consequences, under the laws of such jurisdiction (or any other jurisdiction not being the United
States to which they are subject), of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular,
as to whether any value added tax, other consumption tax or transfer tax is payable in relation to such purchase, holding, sale,
redemption or other dealing.
ERISA
and Related Considerations
The
Employee Retirement Income Security Act of 1974, as amended (ERISA), and/or Code section 4975 impose certain requirements
on certain employee benefit plans and certain other plans and arrangements, including individual retirement accounts and annuities,
Keogh plans, and certain commingled investment vehicles or insurance company general or separate accounts in which such plans
or arrangements are invested (collectively, Plans), and on persons who are fiduciaries with respect to the investment
of plan assets of a Plan. Government plans and some church plans are not subject to the fiduciary responsibility
provisions of ERISA or the provisions of section 4975 of the Code, but may be subject to substantially similar rules under other
federal law, or under state or local law (Other Law).
In
contemplating an investment of a portion of Plan assets in Shares, the Plan fiduciary responsible for making such investment should
carefully consider, taking into account the facts and circumstances of the Plan and the Risk Factors discussed above
and whether such investment is consistent with its fiduciary responsibilities under ERISA or Other Law, including, but not limited
to: (1) whether the investment is permitted under the Plans governing documents, (2) whether the fiduciary has the authority
to make the investment, (3) whether the investment is consistent with the Plans funding objectives, (4) the tax effects
of the investment on the Plan, and (5) whether the investment is prudent considering the factors discussed in this report. In
addition, ERISA and Code section 4975 prohibit a broad range of transactions involving assets of a plan and persons who are parties
in interest under ERISA or disqualified persons under section 4975 of the Code. A violation of these rules
may result in the imposition of significant excise taxes and other liabilities. Plans subject to Other Law may be subject to similar
restrictions.
It
is anticipated that the Shares will constitute publicly offered securities as defined in the Department of Labor
Plan Asset Regulations, 2510.3-101 (b)(2) as modified by section 3(42) of ERISA. Accordingly, pursuant to
the Plan Asset Regulations, only Shares purchased by a Plan, and not an interest in the underlying assets held in the Trust, should
be treated as assets of the Plan, for purposes of applying the fiduciary responsibility rules of ERISA and the prohibited
transaction rules of ERISA and the Code.
18
Fiduciaries
of plans subject to Other Law should consult legal counsel to determine whether there would be a similar result under the Other
Law.
*Investment
by Certain Retirement Plans*
Code
section 408(m) provides that the acquisition of a collectible by an individual retirement account (IRA)
or a participant-directed account maintained under any plan that is tax-qualified under Code section 401(a) (Tax Qualified
Account) is treated as a taxable distribution from the account to the owner of the IRA, or to the participant for whom
the Tax Qualified Account is maintained, of an amount equal to the cost to the account of acquiring the collectible. The term
collectible is defined to include, with certain exceptions, any metal or gem. The IRS has issued several
private letter rulings to the effect that a purchase by an IRA, or by a participant-directed account under a Code section 401(a)
plan, of publicly-traded shares in a trust holding gold will not be treated as resulting in a taxable distribution to the IRA
owner or Tax Qualified Account participant under Code section 408(m). However the private letter rulings provide that, if any
of the Shares so purchased are distributed from the IRA or Tax Qualified Account to the IRA owner or Tax Qualified Account participant,
or if any gold is received by such IRA or Tax Qualified Account upon the redemption of any of the Shares purchased by it, the
Shares or gold so distributed will be subject to federal income tax in the year of distribution, to the extent provided under
the applicable provisions of Code sections 408(d), 408(m) or 402. Accordingly, potential IRA or Tax Qualified Account investors
are urged to consult with their own professional advisors concerning the treatment of an investment in Shares under Code section
408(m).
Item
1A. Risk Factors
Shareholders
should consider carefully the risks described below before making an investment decision. Shareholders should also refer to the
other information included in this report, including the Trusts financial statements and the related notes.
RISKS
RELATED TO GOLD
The
value of the Shares relates directly to the value of the gold held by the Trust and fluctuations in the price of gold could materially
adversely affect an investment in the Shares.
The
Shares are designed to mirror as closely as possible the performance of the price of gold bullion, and the value of the Shares
relates directly to the value of the gold held by the Trust, less the Trusts liabilities (including estimated accrued but
unpaid expenses). The price of gold has fluctuated widely over the past several years. See Overview of the Gold IndustryHistorical
Chart of the Price of Gold for discussion of the fluctuation of gold prices. Several factors may affect the price of gold,
including:
|
| Global
gold supply and demand, which is influenced by such factors as forward selling by gold
producers, purchases made by gold producers to unwind gold hedge positions, central bank
purchases and sales, and production and cost levels in major gold-producing countries
such as China, Australia, Russia and the United States; | |
|
| Investors
expectations with respect to the rate of inflation; | |
|
| Currency
exchange rates; |
|
|
| Interest
rates; |
|
|
| Investment
and trading activities of hedge funds and commodity funds; |
|
|
| Global
or regional political, economic or financial events and situations; and |
|
|
| A
significant change in investor interest, including in response to online campaigns or
other activities specifically targeting investments in gold. | |
In
addition, investors should be aware that there is no assurance that gold will maintain its long-term value in terms of purchasing
power in the future. In the event that the price of gold declines, the Sponsor expects the value of an investment in the Shares
to decline proportionately.
Several
factors may have the effect of causing a decline in the prices of gold and a corresponding decline in the price of Shares. Among
them:
|
| A
significant increase in gold hedging activity by gold producers. Should there be an increase
in the level of hedge activity of gold producing companies, it could cause a decline
in world gold prices, adversely affecting the price of the Shares. | |
|
| A
significant change in the attitude of speculators and investors towards gold. Should
the speculative community take a negative view towards gold, it could cause a decline
in world gold prices, negatively impacting the price of the Shares. | |
|
| A
widening of interest rate differentials between the cost of money and the cost of gold
could negatively affect the price of gold which, in turn, could negatively affect the
price of the Shares. | |
|
| A
combination of rising money interest rates and a continuation of the current low cost
of borrowing gold could improve the economics of selling gold forward. This could result
in an increase in hedging by gold mining companies and short selling by speculative interests,
which would negatively affect the price of gold. Under such circumstances, the price
of the Shares would be similarly affected. | |
19
Conversely,
several factors may trigger a temporary increase in the price of gold prior to your investment in the Shares. If that is the case,
you will be buying Shares at prices affected by the temporarily high prices of gold, and you may incur losses when the causes
for the temporary increase disappear.
Crises
may motivate large-scale sales of gold which could decrease the price of gold and adversely affect an investment in the Shares.
The
possibility of large-scale distress sales of gold in times of crisis may have a short-term negative impact on the price of gold
and adversely affect an investment in the Shares. For example, the 2008 financial credit crisis resulted in significantly depressed
prices of gold largely due to forced sales and deleveraging from institutional investors such as hedge funds and pension funds
as expectations of economic growth slumped. Crises in the future may impair golds price performance which would, in turn,
adversely affect an investment in the Shares.
The
price of gold may be affected by the sale of ETVs tracking the gold markets.
To
the extent existing exchange traded vehicles (ETVs) tracking gold markets represent a significant proportion of
demand for physical gold bullion, large redemptions of the securities of these ETVs could negatively affect physical gold bullion
prices and the price and NAV of the Shares.
RISKS
RELATED TO THE SHARES
The
Shares and their value could decrease if unanticipated operational or trading problems arise.
There
may be unanticipated problems or issues with respect to the mechanics of the Trusts operations and the trading of the Shares
that could have a material adverse effect on an investment in the Shares. In addition, although the Trust is not actively managed
by traditional methods, to the extent that unanticipated operational or trading problems or issues arise, the Sponsors
past experience and qualifications may not be suitable for solving these problems or issues.
Discrepancies,
disruptions or unreliability of the LBMA Gold Price PM could impact the value of the Trusts gold and the market price of
the Shares.
The
Trustee values the Trusts gold pursuant to the LBMA Gold Price PM. In the event that the LBMA Gold Price PM proves to be
an inaccurate benchmark, or the LBMA Gold Price PM varies materially from the prices determined by other mechanisms for valuing
gold, the value of the Trusts gold and the market price of the Shares could be adversely impacted. Any future developments
in the LBMA Gold Price PM, to the extent it has a material impact on the LBMA Gold Price PM, could adversely impact the value
of the Trusts gold and the market price of the Shares. It is possible that electronic failures or other unanticipated events
may occur that could result in delays in the announcement of, or the inability of the benchmark to produce, the LBMA Gold Price
PM on any given date. Furthermore, any actual or perceived disruptions that result in the perception that the LBMA Gold Price
PM is vulnerable to actual or attempted manipulation could adversely affect the behavior of market participants, which may have
an effect on the price of gold. If the LBMA Gold Price PM is unreliable for any reason, the price of gold and the market price
for the Shares may decline or be subject to greater volatility.
If
the process of creation and redemption of Baskets encounters any unanticipated difficulties, the possibility for arbitrage transactions
intended to keep the price of the Shares closely linked to the price of gold may not exist and, as a result, the price of the
Shares may fall.
If
the processes of creation and redemption of Shares (which depend on timely transfers of gold to and by the Custodian) encounter
any unanticipated difficulties, potential market participants who would otherwise be willing to purchase or redeem Baskets to
take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying
gold may not take the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. If
this is the case, the liquidity of Shares may decline and the price of the Shares may fluctuate independently of the price of
gold and may fall. Additionally, redemptions could be suspended in any period during which (1) the NYSE Arca is closed (other
than customary weekend or holiday closings) or trading on the NYSE Arca is suspended or restricted, or (2) an emergency exists
as a result of which delivery, disposal or evaluation of the gold is not reasonably practicable.
A
possible short squeeze due to a sudden increase in demand of Shares that largely exceeds supply may lead to price
volatility in the Shares.
Investors
may purchase Shares to hedge existing gold exposure or to speculate on the price of gold. Speculation on the price of gold may
involve long and short exposures. To the extent aggregate short exposure exceeds the number of Shares available for purchase (for
example, in the event that large redemption requests by Authorized Participants dramatically affect Share liquidity), investors
with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases may in turn,
dramatically increase the price of the Shares until additional Shares are created through the creation process. This is often
referred to as a short squeeze. A short squeeze could lead to volatile price movements in Shares that are not directly
correlated to the price of gold.
20
The
liquidity of the Shares may be affected by the withdrawal from participation of one or more Authorized Participants.
In
the event that one or more Authorized Participants having substantial interests in Shares or otherwise responsible for a significant
portion of the Shares daily trading volume on the Exchange withdraw from participation, the liquidity of the Shares will
likely decrease which could adversely affect the market price of the Shares and result in Shareholders incurring a loss on their
investment.
Shareholders
do not have the protections associated with ownership of shares in an investment company registered under the Investment Company
Act of 1940 or the protections afforded by the CEA.
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. Consequently, Shareholders do not have the regulatory protections provided to investors in investment companies. The
Trust does not and will not hold or trade in commodity futures contracts, commodity interests or any other instruments
regulated by the CEA, as administered by the CFTC and the NFA. Furthermore, the Trust is not a commodity pool for purposes of
the CEA, and neither the Sponsor nor the Trustee is subject to regulation by the CFTC as a commodity pool operator or a commodity
trading advisor in connection with the Trust or the Shares. Consequently, Shareholders do not have the regulatory protections
provided to investors in CEA-regulated instruments or commodity pools operated by registered commodity pool operators or advised
by registered commodity trading advisors.
The
Trust may be required to terminate and liquidate at a time that is disadvantageous to Shareholders.
If
the Trust is required to terminate and liquidate, such termination and liquidation could occur at a time which is disadvantageous
to Shareholders, such as when gold prices are lower than the gold prices at the time when Shareholders purchased their Shares.
In such a case, when the Trusts gold is sold as part of the Trusts liquidation, the resulting proceeds distributed
to Shareholders will be less than if gold prices were higher at the time of sale.
The
lack of an active trading market for the Shares may result in losses on investment at the time of disposition of the Shares.
Although
Shares are listed for trading on the NYSE Arca, it cannot be assumed that an active trading market for the Shares will be maintained.
If an investor needs to sell Shares at a time when no active market for Shares exists, such lack of an active market will most
likely adversely affect the price the investor receives for the Shares (assuming the investor is able to sell them).
Shareholders
do not have the rights enjoyed by investors in certain other vehicles.
As
interests in an investment trust, the Shares have none of the statutory rights normally associated with the ownership of shares
of a corporation (including, for example, the right to bring oppression or derivative actions). In
addition, the Shares have limited voting and distribution rights (for example, Shareholders do not have the right to elect directors
or approve amendments to the Trust Agreement and do not receive dividends).
An
investment in the Shares may be adversely affected by competition from other methods of investing in gold.
The
Trust competes with other financial vehicles, including traditional debt and equity securities issued by companies in the gold
industry and other securities backed by or linked to gold, direct investments in gold and investment vehicles similar to the Trust.
Market and financial conditions, and other conditions beyond the Sponsors control, may make it more attractive to invest
in other financial vehicles or to invest in gold directly, which could limit the market for the Shares and reduce the liquidity
of the Shares.
The
amount of gold represented by each Share will decrease over the life of the Trust due to the recurring deliveries of gold necessary
to pay the Sponsors Fee in-kind and potential sales of gold to pay in cash the Trust expenses not assumed by the Sponsor.
Without increases in the price of gold sufficient to compensate for that decrease, the price of the Shares will also decline proportionately
over the life of the Trust.
The
amount of gold represented by each Share decreases each day by the Sponsors Fee. In addition, although the Sponsor has
agreed to assume all organizational and certain administrative and marketing expenses incurred by the Trust (the Trustees
monthly fee and out-of-pocket expenses, the Custodians fee and reimbursement of the Custodians expenses under the
Custody Agreements, exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per
annum in legal expenses), in exceptional cases certain Trust expenses may need to be paid by the Trust. Because the Trust does
not have any income, it must either make payments in-kind by deliveries of gold (as is the case with the Sponsors Fee)
or it must sell gold to obtain cash (as in the case of any exceptional expenses). The result of these sales of gold and recurring
deliveries of gold to pay the Sponsors Fee in-kind is a decrease in the amount of gold represented by each Share. New deposits
of gold, received in exchange for new Baskets issued by the Trust, will not reverse this trend.
21
A
decrease in the amount of gold represented by each Share results in a decrease in each Shares price even if the price of
gold does not change. To retain the Shares original price, the price of gold must increase. Without that increase, the
lesser amount of gold represented by the Share will have a correspondingly lower price. If this increase does not occur, or is
not sufficient to counter the lesser amount of gold represented by each Share, Shareholders will sustain losses on their investment
in Shares.
An
increase in Trust expenses not assumed by the Sponsor, or the existence of unexpected liabilities affecting the Trust, will require
the Trustee to sell larger amounts of gold, and will result in a more rapid decrease of the amount of gold represented by each
Share and a corresponding decrease in its value.
The
sale of the Trusts gold to pay expenses not assumed by the Sponsor, or unexpected liabilities affecting the Trust, at a
time of low gold prices could adversely affect the value of the Shares.
The
Trustee sells gold held by the Trust to pay Trust expenses not assumed by the Sponsor on an as-needed basis irrespective of then-current
gold prices. The Trust is not actively managed and no attempt will be made to buy or sell gold to protect against or to take advantage
of fluctuations in the price of gold. Consequently, the Trusts gold may be sold at a time when the gold price is low, resulting
in the sale of more gold than would be required if the Trust sold when prices were higher. The sale of the Trusts gold
to pay expenses not assumed by the Sponsor, or unexpected liabilities affecting the Trust, at a time of low gold prices could
adversely affect the value of the Shares.
The
value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor or the Trustee under the Trust
Agreement.
Under
the Trust Agreement, each of the Sponsor and the Trustee has a right to be indemnified from the Trust for any liability or expense
it incurs without gross negligence, bad faith, willful misconduct, willful malfeasance or reckless disregard on its part. That
means the Sponsor or the Trustee may require the assets of the Trust to be sold in order to cover losses or liability suffered
by it. Any sale of that kind would reduce the NAV of the Trust and the value of the Shares.
The
Shares may trade at a price which is at, above or below the NAV per Share and any discount or premium in the trading price relative
to the NAV per Share may widen as a result of non-concurrent trading hours between the NYSE Arca and London, Zurich and COMEX.
The
Shares may trade at, above or below the NAV per Share. The NAV per Share fluctuates with changes in the market value of the Trusts
assets. The trading price of the Shares fluctuates in accordance with changes in the NAV per Share as well as market supply and
demand. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent
trading hours between the NYSE Arca and the major gold markets. While the Shares trade on the NYSE Arca until 4:00 p.m. New York
time, liquidity in the market for gold will be reduced after the close of the major world gold markets, including London, Zurich
and the COMEX. As a result, during these periods, trading spreads, and the resulting premium or discount on the Shares, may widen.
Purchasing
activity in the gold market associated with the purchase of Baskets from the Trust may cause a temporary increase in the price
of gold. This increase may adversely affect an investment in the Shares.
Purchasing
activity associated with acquiring the gold required for deposit into the Trust in connection with the creation of Baskets may
temporarily increase the market price of gold, which will result in higher prices for the Shares. Temporary increases in the market
price of gold may also occur as a result of the purchasing activity of other market participants. Other gold market participants
may attempt to benefit from an increase in the market price of gold that may result from increased purchasing activity of gold
connected with the issuance of Baskets. Consequently, the market price of gold may decline immediately after Baskets are created.
If the price of gold declines, the trading price of the Shares may also decline.
The
Fund is subject to responsible sourcing due diligence risk.
The
Fund seeks to hold only responsibly sourced gold bullion (as defined herein) in its allocated account. The LBMAs Gold Guidance
establishes minimum requirements that are mandatory along the entire gold supply chain for all Good Delivery refiners wishing
to trade with the London Bullion market. These standards are intended to ensure, among other things, that gold is mined through
verified supply chains that meet certain internationally recognized ethical standards. For example, approved LBMA refiners are
required to demonstrate their efforts to combat money laundering, financing of terrorism and human rights abuses, and to respect
the environment globally. The LBMAs Responsible Sourcing Programme provides a governance and audit framework for monitoring
compliance with the Gold Guidance. The Gold Guidance and the LMBAs Responsible Sourcing Programme include tailored due
diligence standards with respect to various types of gold, including mined and recycled gold. However, the Gold Guidance and the
Responsible Sourcing Programme may not work as intended or may be less effective in the case of recycled gold as the ultimate
source(s) of recycled gold may not be identifiable. Specifically, the Gold Guidance sets forth due diligence expectations for
recycled gold including documentation required to give assurance of origin and legality. In an effort to enhance efficacy, the
due diligence requirements with respect the refiners assessment of the recycled gold supplier as set forth in the Gold
Guidance are expected to cover all precious metals activities carried out by the supplier rather than refiners direct supply
chains only. In addition, the Gold Guidance categorizes types of recycled gold by the level of risk posed and provides additional
due diligence and enhanced due diligence guidance per category and includes requirements for secondary refiners supplying recycled
melted gold to LBMA Good Delivery refiners to undergo independent assurance on conformance with an Organisation for Economic Co-operation
and Development (OECD) approved responsible sourcing scheme. There is no guarantee that the Gold Guidance or the
Responsible Sourcing Programme will be implemented as intended, and there may be instances of non-compliance that are undetected.
22
While
the Fund endeavors to hold only responsibly sourced gold, from time to time, in certain circumstances the Fund may hold
pre-2012 gold, including, for example, due to a temporary supply constraint or lack of availability. In those circumstances,
the Custodian will seek to replace any pre-2012 gold in the Funds allocated account with post-2012 gold as soon as
reasonably practicable. With respect to gold bars refined by a LBMA Good Delivery refiner, to the extent that the gold bars
are refined during the period of time that the refiner is on the LBMA Good Delivery Current List, the subsequent removal of
that refiner from the LBMA Good Delivery Current List to the LBMA Good Delivery Former List does not impact the status of
those gold bars as London Good Delivery bars (i.e., such bars continue to be deemed London Good Delivery bars) and,
therefore, those bars can continue to be held by the Fund. Neither the Sponsor nor the Fund is responsible for setting,
implementing or enforcing the LBMAs Good Delivery standards and may have limited or no ability to independently verify
gold sourcing due diligence undertaken by the LBMA. Similarly, the Fund and the Sponsor cannot guarantee all gold held by the
Fund, including gold derived from recycled sources, is 100% ethically sourced or compliant with the Gold Guidance. The Fund
is not an actively managed investment vehicle. The Sponsor does not make any decision or assessment related to gold sourcing
based on its subjective judgment.
RISKS
RELATED TO THE CUSTODY OF GOLD
The
Trusts gold may be subject to loss, damage, theft or restriction on access.
There
is a risk that part or all of the Trusts gold could be lost, damaged or stolen. Access to the Trusts gold could
also be restricted by natural events (such as an earthquake) or human actions (such as a terrorist attack). Any of these events
may adversely affect the operations of the Trust and, consequently, an investment in the Shares.
The
Trusts lack of insurance protection and the Shareholders limited rights of legal recourse against the Trust, the
Trustee, the Sponsor, the Custodian and any sub-custodian exposes the Trust and its Shareholders to the risk of loss of the Trusts
gold for which no person is liable.
The
Trust does not insure its gold. The Custodian maintains insurance with regard to its business on such terms and conditions as
it considers appropriate in connection with its custodial obligations and is responsible for all costs, fees and expenses arising
from the insurance policy or policies. The Trust is not a beneficiary of any such insurance and does not have the ability to dictate
the existence, nature or amount of coverage. Therefore, Shareholders cannot be assured that the Custodian maintains adequate insurance
or any insurance with respect to the gold held by the Custodian on behalf of the Trust. In addition, the Custodian and the Trustee
do not require any direct or indirect sub-custodians to be insured or bonded with respect to their custodial activities or in
respect of the gold held by them on behalf of the Trust. Further, Shareholders recourse against the Trust, the Trustee
and the Sponsor, under New York law, the Custodian, under English law, and any other sub-custodians under the law governing their
custody operations is limited. Consequently, a loss may be suffered with respect to the Trusts gold which is not covered
by insurance and for which no person is liable in damages.
The
Custodians limited liability under the Custody Agreements and English law may impair the ability of the Trust to recover
losses concerning its gold and any recovery may be limited, even in the event of fraud, to the market value of the gold at the
time the fraud is discovered.
The
liability of the Custodian is limited under the Custody Agreements. Under the Custody Agreements between the Trustee and the Custodian
which establish the Trust Unallocated Account and the Trust Allocated Account, the Custodian is only liable for losses that are
the direct result of its own negligence, fraud or willful default in the performance of its duties. Any such liability is further
limited to the market value of the gold lost or damaged at the time such negligence, fraud or willful default is discovered by
the Custodian provided the Custodian notifies the Trust and the Trustee promptly after the discovery of the loss or damage. Under
each Authorized Participant Unallocated Bullion Account Agreement (between the Custodian and an Authorized Participant establishing
an Authorized Participant Unallocated Account), the Custodian is not contractually or otherwise liable for any losses suffered
by any Authorized Participant or Shareholder that are not the direct result of its own gross negligence, fraud or willful default
in the performance of its duties under such agreement, and in no event will its liability exceed the market value of the balance
in the Authorized Participant Unallocated Account at the time such gross negligence, fraud or willful default is discovered by
the Custodian. For any Authorized Participant Unallocated Bullion Account Agreement between an Authorized Participant and another
gold clearing bank, the liability of the gold clearing bank to the Authorized Participant may be greater or lesser than the Custodians
liability to the Authorized Participant described in the preceding sentence, depending on the terms of the agreement. In addition,
the Custodian will not be liable for any delay in performance or any non-performance of any of its obligations under the Allocated
Account Agreement, the Unallocated Account Agreement or the Authorized Participant Unallocated Bullion Account Agreement by reason
of any cause beyond its reasonable control, including acts of God, war or terrorism. As a result, the recourse of the Trustee
or a Shareholder, under English law, is limited. Furthermore, under English common law, the Custodian or any sub-custodian will
not be liable for any delay in the performance or any non-performance of its custodial obligations by reason of any cause beyond
its reasonable control.
23
The
obligations of the Custodian are governed by English law, which may frustrate the Trust in attempting to seek legal redress against
the Custodian or any other sub-custodian concerning its gold.
The
obligations of the Custodian under the Custody Agreements are, and the Authorized Participant Unallocated Bullion Account Agreements
may be, governed by English law. The Custodian may enter into arrangements with other sub-custodians for the temporary custody
of the Trusts gold, which arrangements may also be governed by English law. The Trust is a New York common law trust. Any
United States, New York or other court situated in the United States may have difficulty interpreting English law (which, insofar
as it relates to custody arrangements, is largely derived from court rulings rather than statute), LBMA rules or the customs and
practices in the London custody market. It may be difficult or impossible for the Trust to sue any sub-custodian in a United States,
New York or other court situated in the United States. In addition, it may be difficult, time consuming and/or expensive for the
Trust to enforce in a foreign court a judgment rendered by a United States, New York or other court situated in the United States.
The
Trust may not have adequate sources of recovery if its gold is lost, damaged, stolen or destroyed.
If
the Trusts gold is lost, damaged, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible
party may not have the financial resources sufficient to satisfy the Trusts claim. For example, as to a particular event
of loss, the only source of recovery for the Trust might be limited to the Custodian or any sub-custodian or, to the extent identifiable,
other responsible third parties (e.g., a thief or terrorist), any of which may not have the financial resources (including liability
insurance coverage) to satisfy a valid claim of the Trust.
Shareholders
and Authorized Participants lack the right under the Custody Agreements to assert claims directly against the Custodian and any
sub-custodian.
Neither
the Shareholders nor any Authorized Participant have a right under the Custody Agreements to assert a claim of the Trust against
the Custodian or any sub-custodian. Claims under the Custody Agreements may only be asserted by the Trustee on behalf of the Trust.
Because
the Trustee does not, and the Custodian has limited obligations to, oversee or monitor the activities of sub-custodians who may
hold the Trusts gold, failure by the sub-custodians to exercise due care in the safekeeping of the Trusts gold could
result in a loss to the Trust.
Under
the Allocated Account Agreement described in Description of the Custody Agreements, the Custodian may appoint from
time to time one or more sub-custodians to hold the Trusts gold on a temporary basis pending delivery to the Custodian.
Any sub-custodian selected by the Custodian shall be a member of the LBMA or any equity member of the London Precious Metals Clearing
Limited, except for the Governor and Company of the Bank of England. The Custodian is not currently using a sub-custodian as of
the date of this report. The Custodian is required under the Allocated Account Agreement to use reasonable care in appointing
any sub-custodians, making the Custodian liable only for negligence or bad faith in the selection of such sub-custodians, and
has an obligation to use commercially reasonable efforts to obtain delivery of the Trusts gold from any sub-custodians
appointed by the Custodian. Otherwise, the Custodian is not liable for the acts or omissions of its sub-custodians. These sub-custodians
may in turn appoint further sub-custodians, but the Custodian is not responsible for the appointment of these further sub-custodians.
The Custodian does not undertake to monitor the performance by sub-custodians of their custody functions or their selection of
further sub-custodians. The Trustee does not monitor the performance of the Custodian other than to review the reports provided
by the Custodian pursuant to the Custody Agreements and does not undertake to monitor the performance of any sub-custodian. Furthermore,
the Trustee may have no right to visit the premises of any sub-custodian for the purposes of examining the Trusts gold
or any records maintained by the sub-custodian, and no sub-custodian will be obligated to cooperate in any review the Trustee
may wish to conduct of the facilities, procedures, records or creditworthiness of such sub-custodian. In addition, the ability
of the Trustee to monitor the performance of the Custodian may be limited because under the Allocated Account Agreement and the
Unallocated Account Agreement the Trustee has only limited rights to visit the premises of the Custodian and for the purpose of
examining the Trusts gold and certain related records maintained by the Custodian. See Custody of the Trusts
Gold for more information about sub-custodians that may hold the Trusts gold.
The
obligations of any sub-custodian of the Trusts gold are not determined by contractual arrangements but by LBMA rules and
London bullion market customs and practices, which may prevent the Trusts recovery of damages for losses on its gold custodied
with sub-custodians.
There
are expected to be no written contractual arrangements between sub-custodians that hold the Trusts gold and the Trustee
or the Custodian because traditionally such arrangements are based on the LBMAs rules and on the customs and practices
of the London bullion market. In the event of a legal dispute with respect to or arising from such arrangements, it may be difficult
to define such customs and practices. The LBMAs rules may be subject to change outside the control of the Trust. Under
English law, neither the Trustee nor the Custodian would have a supportable breach of contract claim against a sub-custodian for
losses relating to the safekeeping of gold. If the Trusts gold is lost or damaged while in the custody of a sub-custodian,
the Trust may not be able to recover damages from the Custodian or the sub-custodian. Whether a sub-custodian will be liable for
the failure of sub-custodians appointed by it to exercise due care in the safekeeping of the Trusts gold will depend on
the facts and circumstances of the particular situation. Shareholders cannot be assured that the Trustee will be able to recover
damages from sub-custodians whether appointed by the Custodian or by another sub-custodian for any losses relating to the safekeeping
of gold by such sub-custodians.
24
Gold
bullion allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and,
if a Basket is issued against such gold, the Trust may suffer a loss.
Neither
the Trustee nor the Custodian independently confirms the fineness of the gold allocated to the Trust in connection with the creation
of a Basket. The gold bullion allocated to the Trust by the Custodian may be different from the reported fineness or weight required
by the LBMAs standards for gold bars delivered in settlement of a gold trade (London Good Delivery Standards), the standards
required by the Trust. If the Trustee nevertheless issues a Basket against such gold, and if the Custodian fails to satisfy its
obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.
Gold
held in the Trusts unallocated gold account and any Authorized Participants unallocated gold account will not be
segregated from the Custodians assets. If the Custodian becomes insolvent, its assets may not be adequate to satisfy a
claim by the Trust or any Authorized Participant. In addition, in the event of the Custodians insolvency, there may be
a delay and costs incurred in identifying the bullion held in the Trusts allocated gold account.
Gold
which is part of a deposit for a purchase order or part of a redemption distribution is held for a time in the Trust Unallocated
Account and, previously or subsequently in, the Authorized Participant Unallocated Account of the purchasing or redeeming Authorized
Participant. During those times, the Trust and the Authorized Participant, as the case may be, have no proprietary rights to any
specific bars of gold held by the Custodian and are each an unsecured creditor of the Custodian with respect to the amount of
gold held in such unallocated accounts. In addition, if the Custodian fails to allocate the Trusts gold in a timely manner,
in the proper amounts or otherwise in accordance with the terms of the Unallocated Account Agreement, or if a sub-custodian fails
to so segregate gold held by it on behalf of the Trust, unallocated gold will not be segregated from the Custodians assets,
and the Trust will be an unsecured creditor of the Custodian with respect to the amount so held in the event of the insolvency
of the Custodian. In the event the Custodian becomes insolvent, the Custodians assets might not be adequate to satisfy
a claim by the Trust or the Authorized Participant for the amount of gold held in their respective unallocated gold accounts.
In
the case of the insolvency of the Custodian, a liquidator may seek to freeze access to the gold held in all of the accounts held
by the Custodian, including the Trust Allocated Account. Although the Trust would be able to claim ownership of properly allocated
gold, the Trust could incur expenses in connection with asserting such claims, and the assertion of such a claim by the liquidator
could delay creations and redemptions of Baskets.
In
issuing Baskets, the Trustee relies on certain information received from the Custodian which is subject to confirmation after
the Trustee has relied on the information. If such information turns out to be incorrect, Baskets may be issued in exchange for
an amount of gold which is more or less than the amount of gold which is required to be deposited with the Trust.
The
Custodians definitive records are prepared after the close of its business day. However, when issuing Baskets, the Trustee
relies on information reporting the amount of gold credited to the Trusts accounts which it receives from the Custodian
during the business day and which is subject to correction during the preparation of the Custodians definitive records
after the close of business. If the information relied upon by the Trustee is incorrect, the amount of gold actually received
by the Trust may be more or less than the amount required to be deposited for the issuance of Baskets.
GENERAL
RISKS
The
Trust relies on the information and technology systems of the Trustee, the Custodian, the Marketing Agent and the Sponsor, which
could be adversely affected by information systems interruptions, cybersecurity attacks or other disruptions which could have
a material adverse effect on the Trusts record keeping and operations.
The
Custodian, the Trustee, the Marketing Agent and the Sponsor depend upon information technology infrastructure, including network,
hardware and software systems to conduct their business as it relates to the Trust. A cybersecurity incident, or a failure to
protect their computer systems, networks and information against cybersecurity threats, could result in a loss of information
and adversely impact their ability to conduct their business, including their business on behalf of the Trust. Despite implementation
of network and other cybersecurity measures, their security measures may not be adequate to protect against all cybersecurity
threats.
25
War,
a major terrorist attack and other geopolitical events, including but not limited to the war between Russia and Ukraine, outbreaks
or public health emergencies (as declared by the World Health Organization), the continuation or expansion of war or other hostilities,
or a prolonged government shutdown may cause volatility in the price of gold due to the importance of a country or region to the
gold markets, market access restrictions imposed on some local gold producers and refiners, potential impacts to global transportation
and shipping and other supply chain disruptions. These events are unpredictable and may lead to extended periods of price volatility.
The
operations of the Trust, the exchanges, brokers and counterparties with which the Trust does business, and the markets in which
the Trust does business, could be severely disrupted in the event of war, a major terrorist attack and other geopolitical events,
including but not limited to, the war between Russia and Ukraine, outbreaks or public health emergencies (as declared by the World
Health Organization), the continuation or expansion of war or other hostilities, or a prolonged government shutdown. Such events
may cause volatility in the price of gold due to the importance of a country or region to the gold markets, market access restrictions
imposed on some local gold producers and refiners, or potential impacts to global transportation, shipping, and other supply chain
disruptions.
In
late February 2022, Russia invaded Ukraine, significantly amplifying already existing geopolitical tensions among Russia and other
countries in the region and in the West. The responses of countries and political bodies to Russias actions, the larger
overarching tensions, and Ukraines military response and the potential for wider conflict may increase financial market
volatility generally, have severe adverse effects on regional and global economic markets, and cause volatility in the price of
gold and the share price of the Trust. The conflict in Ukraine, along with global political fallout and implications including
sanctions, shipping disruptions, collateral war damage, and a potential expansion of the conflict beyond Ukraines borders,
could disturb the gold markets. Russia is one of the worlds largest producers of several precious metals, including gold.
On March 7, 2022, the LBMA suspended its accreditation of six Russian refiners of gold. New productions by such refiners will
no longer be accepted as Good Delivery by the LBMA until further notice. The bars these refiners previously produced will still be considered Good Delivery,
consistent with past suspensions of refiners by the LBMA. Fewer suppliers to the LBMA may lead to a lower supply of Good Delivery
gold and further volatility in the price of gold. Following an announcement at the G7 Summit to collectively ban the import of
Russian gold, the UK passed regulations which prohibit the direct or indirect (i) import of gold that originated in Russia, (ii)
acquisition of gold that originated in Russia or is located in Russia and (iii) supply or delivery of gold that originated in
Russia, all after July 21, 2022. Similarly, US regulations prohibit the import of gold of Russian origin into the United States
on or after June 28, 2022 and EU regulations prohibit the direct or indirect import, purchase or transfer of gold if it originates
in Russia and has been exported from Russia after July 22, 2022.
War and other geopolitical events in eastern Europe, including
but not limited to Russia and Ukraine, may cause volatility in commodity prices including precious metals prices. These events
are unpredictable and may lead to extended periods of price volatility.
**The Trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy
and the markets and serviceproviders relevant to the performance of the Trust.**
****
Public health emergencies, such as the COVID-19 pandemic, could have serious negative effects
on social, economic and financial systems, including significant uncertainty and volatility in the financial markets. For instance,
the suspension of operations of mines, refineries and vaults that extract, produce or store gold, restrictions on travel that
delay or prevent the transportation of gold and an increase in demand for gold may disrupt supply chains for gold, which could
cause secondary market spreads to widen and compromise the Trusts ability to settle transactions on time. Any inability
of the Trust to issue or redeem Shares or the Custodian or any sub-custodian to receive or deliver gold as a result of an infectious
disease outbreak or public health emergency will negatively affect the Trusts operations. Future infectious illness outbreaks
or other public health emergencies could have similar or other unforeseen impacts and may exacerbate pre-existing political, social
and economic risks in certain countries or globally, which could adversely affect the value of the Shares.
Public health emergencies could increase the Trusts costs
and affect liquidity in the market for gold, as well as the correlation between the price of the Shares and the net asset value
of the Trust, any of which could adversely affect the value of your Shares. In addition, the public health emergencies could impair the information technology and other operational systems upon which the Trusts service
providers, including the Sponsor, the Trustee and the Custodian, rely, and could otherwise disrupt the ability of employees of
the Trusts service providers to perform essential tasks on behalf of the Trust. Governmental and quasi-governmental authorities
and regulators throughout the world have at times responded to major economic disruptions with a variety of fiscal and monetary
policy changes, including, but not limited to, direct capital infusions into companies and other issuers, new monetary tools and
lower interest rates. An unexpected or sudden reversal of these policies, or the ineffectiveness of these policies, is likely
to increase volatility in the market for gold, which could adversely affect the price of the Shares.
Further, public health emergencies could interfere with or prevent the operation of the electronic
auction hosted by IBA to determine the LBMA Gold Price, which the Trustee uses to value the gold held by the Trust and calculate
the net asset value of the Trust. Public health emergencies could also cause the closure
of futures exchanges, which could eliminate the ability of Authorized Participants to hedge purchases of Baskets, increasing trading
costs of Shares and resulting in a sustained premium or discount in the Shares. Each of these outcomes would negatively impact
the Trust.
Potential
conflicts of interest may arise among the Sponsor or its affiliates and the Trust.
Conflicts
of interest may arise among the Sponsor and its affiliates, on the one hand, and the Trust and its Shareholders, on the other
hand. As a result of these conflicts, the Sponsor may favor its own interests and the interests of its affiliates over the Trust
and its Shareholders. As an example, the Sponsor, its affiliates and their officers and employees are not prohibited from engaging
in other businesses or activities, including those that might be in direct competition with the Trust.
26
Item
1B. Unresolved Staff Comments
None.
Item
1C. Cybersecurity
Cybersecurity
The
Trust, through its service providers, has processes in place to assess, identify and manage material risks from cybersecurity
threats. The Trusts business is dependent on the communications and information systems of the Trustee, the Sponsor, the
Custodian and other third-party service providers. The Trustee is responsible for day-to-day administration of the Trust and has
implemented a cybersecurity program that applies to the Trustee and its business, including the administration of the Trust.
Cybersecurity
Program Overview
The
Trustee has instituted a cybersecurity program designed to identify, assess and mitigate cyber risks applicable to the administration
by the Trustee of the Trust. The cyber risk management program involves risk assessments, implementation of security measures
and ongoing monitoring of systems and networks, including networks on which the Trust relies. The Trustee actively monitors the
current threat landscape to seek to identify material risks arising from new and evolving cybersecurity threats, including material
risks faced by the Trust.
The
Trust relies on the Trustee, the Sponsor and the Custodian to engage external experts, including cybersecurity assessors, risk
management and information technology professionals, attorneys, consultants and auditors to evaluate cybersecurity measures and
risk management processes, including those applicable to the Trust.
Board
Oversight of Cybersecurity Risks
The
Trust has no board of trustees and is administered by the Trustee pursuant to the Trust Agreement. Accordingly, the Trust relies
on the Trustee, the Sponsor and the Custodian for oversight of cybersecurity risks applicable to the Trust.
Managements
Role in Cybersecurity Risk Management
The
Trust has no officers or employees and is administered by the Trustee pursuant to the Trust Agreement. Accordingly, the Trust
relies on the Trustee, the Sponsor and the Custodian for management of cybersecurity risks applicable to the Trust.
Assessment
of Cybersecurity Risk
The
potential impact of risks from cybersecurity threats to the Trust are assessed by the Trustee, the Sponsor, the Custodian and
third-party service providers on an ongoing basis, and how such risks could materially affect the Trusts objective, operational
results and financial condition are regularly evaluated. During the reporting period, the Trustee has not identified any risks
from cybersecurity threats, including as a result of previous cybersecurity incidents, that the Trustee believes have materially
affected, or are reasonably likely to materially affect, the Trust, including its objective, operational results and financial
condition.
Item
2. Properties
Not
applicable.
Item
3. Legal Proceedings
None
Item
4. Mine Safety Disclosure
Not
applicable.
27
PART
II
Item
5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The
Trust was formed on September 1, 2009 (the Date of Inception) following an initial deposit of gold. The Trusts
Shares have been listed on the NYSE Arca under the symbol SGOL since its initial public offering on September 9, 2009. The following
tables set out the range of high and low closing prices for the Shares as reported for NYSE Arca transactions for each of the
quarters during the years ended December 31, 2025 and 2024:
**Fiscal Year Ended December 31, 2025:
Quarter Ended**
****
|
| | |
High | | |
Low | | |
|
March 31, 2025 | | |
$ | 29.84 | | |
$ | 25.04 | | |
|
June 30, 2025 | | |
$ | 32.87 | | |
$ | 28.22 | | |
|
September 30, 2025 | | |
$ | 36.83 | | |
$ | 31.17 | | |
|
December 31, 2025 | | |
$ | 43.36 | | |
$ | 36.42 | | |
**Fiscal
Year Ended December 31, 2024: Quarter Ended**
|
| | |
High | | |
Low | | |
|
March 31, 2024 | | |
$ | 21.27 | | |
$ | 18.98 | | |
|
June 30, 2024 | | |
$ | 23.29 | | |
$ | 21.31 | | |
|
September 30, 2024 | | |
$ | 25.56 | | |
$ | 2216 | | |
|
December 31, 2024 | | |
$ | 26.64 | | |
$ | 24.42 | | |
|
| | |
| | | |
| | | |
|
The number of outstanding Shares of the Trust as of February 26, 2026 was 182,400,000. | |
*Monthly Share Price*
The
following table sets forth, for each of the most recent six months, the high and low closing prices of the Shares, as reported
for NYSE Arca transactions.
|
Month |
| |
High |
| |
Low | | |
|
August 2025 |
| |
$ | 32.94 |
| |
$ | 31.61 | | |
|
September 2025 |
| |
$ | 36.83 |
| |
$ | 33.18 | | |
|
October 2025 |
| |
$ | 41.77 |
| |
$ | 36.42 | | |
|
November 2025 |
| |
$ | 40.20 |
| |
$ | 37.45 | | |
|
December 2025 |
| |
$ | 43.36 |
| |
$ | 39.69 | | |
|
January 2026 |
| |
$ | 52.84 |
| |
$ | 41.07 | | |
28
*Issuer
Purchase of Equity Securities*
The
Trust issues and redeems Shares only with Authorized Participants in exchange for gold, only in aggregations of 100,000 Shares,
referred to as a Basket. A list of current Authorized Participants is available from the Sponsor or the Trustee and is included
in Item 7 of this report. Although the Trust does not purchase Shares directly from its Shareholders, in connection with the redemption
of Baskets, the Trust redeemed as follows during the years ended December 31, 2025 and 2024:
|
Month | |
Total
number of Shares redeemed | | |
Average
ounces of gold per share | | |
|
January 2025 | |
| 800,000 | | |
| 0.0095 | | |
|
February 2025 | |
| 1,700,000 | | |
| 0.0095 | | |
|
March 2025 | |
| 300,000 | | |
| 0.0095 | | |
|
April 2025 | |
| 2,300,000 | | |
| 0.0095 | | |
|
May 2025 | |
| 3,700,000 | | |
| 0.0095 | | |
|
June 2025 | |
| | | |
| | | |
|
July 2025 | |
| 1,900,000 | | |
| 0.0095 | | |
|
August 2025 | |
| 700,000 | | |
| | | |
|
September 2025 | |
| | | |
| | | |
|
October 2025 | |
| 900,000 | | |
| 0.0095 | | |
|
November 2025 | |
| | | |
| | | |
|
December 2025 | |
| | | |
| | | |
|
Total | |
| 12,300,000 | | |
| 0.0095 | | |
|
Month | |
Total
number of Shares redeemed | | |
Average
ounces of gold per share | | |
|
January 2024 | |
| 2,200,000 | | |
| 0.0096 | | |
|
February 2024 | |
| 2,400,000 | | |
| 0.0096 | | |
|
March 2024 | |
| 400,000 | | |
| 0.0096 | | |
|
April 2024 | |
| | | |
| | | |
|
May 2024 | |
| 900,000 | | |
| 0.0096 | | |
|
June 2024 | |
| | | |
| | | |
|
July 2024 | |
| 300,000 | | |
| 0.0096 | | |
|
August 2024 | |
| | | |
| | | |
|
September 2024 | |
| 400,000 | | |
| 0.0096 | | |
|
October 2024 | |
| 700,000 | | |
| 0.0096 | | |
|
November 2024 | |
| 1,000,000 | | |
| 0.0095 | | |
|
December 2024 | |
| 800,000 | | |
| 0.0095 | | |
|
Total | |
| 9,100,000 | | |
| 0.0096 | | |
**Item 6. [Reserved]**
29
Item
7. Managements 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 with this
report. The discussion and analysis that follows may contain statements that relate to future events or future performance. In
some cases, such forward-looking statements can be identified by terminology such as may, should,
expect, plan, anticipate, believe, estimate, predict,
potential or the negative of these terms or other comparable terminology. We remind readers that forward-looking
statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown
risks that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially
different from any future results, performance, levels of activity, or our achievements expressed or implied by such forward-looking
statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the
date hereof. The Trust undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.*
*Introduction*
The
abrdn Gold ETF Trust (the Trust) is a trust formed under the laws of the State of New York. The Trust does not have
any officers, directors, or employees, and is administered by The Bank of New York Mellon (the Trustee) acting as
trustee pursuant to the Depositary Trust Agreement (the Trust Agreement) between the Trustee and abrdn ETFs Sponsor
LLC, the sponsor of the Trust (the Sponsor). The Trust issues Shares representing fractional undivided beneficial
interests in its net assets. The assets of the Trust consist of gold bullion held by a custodian as an agent of the Trust and
responsible only to the Trustee.
The
Trust is a passive investment vehicle and the objective of the Trust is for the value of each Share to approximately reflect,
at any given time, the price of the gold bullion owned by the Trust, less the Trusts liabilities (anticipated to be principally
for accrued operating expenses), divided by the number of outstanding Shares. The Trust does not engage in any activities designed
to obtain a profit from, or ameliorate losses caused by, changes in the price of gold.
The
Trust issues and redeems Shares only in exchange for gold, only in aggregations of 100,000 Shares effective November 4, 2019 (prior
to November 4, 2019, the number of Shares that constituted a Basket for creations and redemptions was 50,000 Shares) or integral
multiples thereof (each, a Basket), and only in transactions with registered broker-dealers or other securities
market participants not required to register as broker-dealers, such as a bank or other financial institution, that (1) are participants
in DTC and (2) have previously entered into an agreement with the Trust governing the terms and conditions of such issuance (such
dealers, the Authorized Participants). As of the date of this annual report the Authorized Participants that have
signed an Authorized Participant Agreement with the Trust are Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan
Securities LLC, Merrill Lynch Professional Clearing Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. Inc., Scotia Capital
(USA) Inc., UBS Securities LLC and Virtu Americas, LLC.
Shares
of the Trust trade on the NYSE Arca under the symbol SGOL.
Investing
in the Shares does not insulate the investor from certain risks, including price volatility. The following table illustrates the
movement in the net asset value (NAV) of the Shares against the corresponding gold price (per 1/100 of an oz. of
gold) since inception:
NAV
per Share vs. Gold Price from the September 9, 2009 (the Date of Inception) to December 31, 2025(1)
*
(1)
After the close of markets on November 1, 2019, the Trust effected a ten-for-one forward share split of the Shares issued by the
Trust (the Split). The information presented attributable to periods prior to the Split has been adjusted to reflect
the effects of the Split.
The
divergence of the NAV per Share from the gold price over time reflects the cumulative effect of the Trust expenses that arise
if an investment had been held since inception.
Critical
Accounting Policy
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 Trusts
financial position and results of operations. These estimates and assumptions affect the Trusts application of accounting
policies. Below we describe the valuation of gold bullion, a critical accounting policy that we believe is important to understanding
the results of operations and financial position. In addition, please refer to Note 2 to the Financial Statements for further
discussion of the Trusts accounting policies.
30
Valuation
of Gold*
Gold
is held by the Custodian on behalf of the Trust. Gold is recorded at fair value. The cost of gold is determined according to the
average cost method and the fair value is based on the LBMA Gold Price PM or the LBMA Gold Price AM if no LBMA Gold Price PM is
available. If neither price is available for that day, the Trust will value its gold based on the most recently announced LBMA
Gold Price PM or LBMA Gold Price AM. Realized gains and losses on transfers of gold, or gold distributed for the redemption of
Shares, are calculated on a trade date basis as the difference between the fair value and cost of gold transferred.
|
| |
December
31, 2025 | | |
December
31, 2024 | | |
December
31, 2023 | | |
|
(Amounts
in 000s of US$) | |
| | | |
| | | |
| | | |
|
Investment
in gold - cost | |
$ | 3,555,799 | | |
$ | 2,476,303 | | |
$ | 2,207,626 | | |
|
Unrealized gain on investment in gold | |
| 3,777,848 | | |
| 1,280,365 | | |
| 619,041 | | |
|
Investment in gold - fair value | |
$ | 7,333,647 | | |
$ | 3,756,668 | | |
$ | 2,826,667 | | |
31
Inspection
of Gold
Under
the Custody Agreements, the Trustee, the Sponsor and the Trusts auditors and inspectors may, only up to twice a year, visit
the premises of the Custodian for the purpose of examining the Trusts gold and certain related records maintained by the
Custodian. The Trustee and the Sponsor have no right to visit the premises of any sub-custodian for the purposes of examining
the Trusts gold or any records maintained by the sub-custodian and no sub-custodian is obligated to cooperate in any review
the Trustee or the Sponsor may wish to conduct of the facilities, procedures, records or creditworthiness of such sub-custodian.
The
Sponsor has exercised its right to visit the Custodian in order to examine the gold and the records maintained by the Custodian.
An inspection was conducted by Bureau Veritas Commodities UK Ltd, a leading commodity inspection and testing company retained
by the Sponsor, as of August 4, 2025 and January 5, 2026.
There
can be no guarantee that the Sponsor or the Trusts auditors and inspectors will be able to perform physical inspections
of the Trusts gold as planned. Local policies, regulations, or ordinances, as well as polices or restrictions adopted by
the Custodian or a sub-custodian, may temporarily prevent, or otherwise impair the ability of, the Sponsor or the Trusts
auditors and inspectors, from performing a physical inspection of the Trusts gold on a desired date. In those situations,
the Sponsor or the Trusts auditors and inspectors may seek to verify the gold held by the Trust by alternate means, including
through virtual inspections of the Trusts gold and/or a review of pertinent records.
Liquidity
The
Trust is not aware of any trends, demands, conditions, events or uncertainties that are reasonably likely to result in material
changes to its liquidity needs. In exchange for the Sponsors Fee, the Sponsor has agreed to assume most of the expenses
incurred by the Trust. As a result, the only expense of the Trust during the period covered by this report was the Sponsors
Fee. The Trusts only source of liquidity is its transfers and sales of gold.
The
Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trusts gold as necessary to pay the Trusts
expenses not otherwise assumed by the Sponsor. The Trustee will not sell gold to pay the Sponsors Fee but will pay the
Sponsors Fee through in-kind transfers of gold to the Sponsor. At December 31, 2025 and 2024, the Trust did not have any
cash balances.
|
Results of Operations | |
| | |
|
| |
| | |
|
Financial Highlights | |
| | | |
| | | |
| | | |
|
| |
| | | |
| | | |
| | | |
|
| |
| Year
Ended December 31, 2025 | | |
| Year
Ended December 31, 2024 | | |
| Year
Ended December 31, 2023 | | |
|
(Amounts
in 000s of US$) | |
| | | |
| | | |
| | | |
|
Total
gain/(loss) on gold | |
$ | 2,662,947 | | |
$ | 716,235 | | |
$ | 350,287 | | |
|
Net change assets from operations | |
$ | 2,653,692 | | |
$ | 710,639 | | |
$ | 345,743 | | |
|
Net cash provided by operating activities | |
$ | | | |
$ | | | |
$ | | | |
32
The
net asset value of the Trust will be obtained by subtracting the Trusts expenses and liabilities on any day from the value
of the gold owned by the Trust on that day; the NAV per Share will be obtained by dividing the net asset value of the Trust on
a given day by the number of Shares outstanding on that day. On each day on which the Exchange is open for regular trading, the
Trustee will determine the net asset value of the Trust and the NAV per Share as promptly as practicable after 4:00 p.m. (New
York time). The Trustee will value the Trusts gold on the basis of LBMA Gold Price PM. If there is no LBMA Gold Price PM
on any day, the Trustee is authorized to use the LBMA Gold Price AM announced on that day. If neither price is available for that
day, the Trustee will value the Trusts gold based on the most recently announced LBMA Gold Price PM or LBMA Gold Price
AM. If the Sponsor determines that such price is inappropriate to use, the Sponsor will identify an alternate basis for evaluation
to be employed by the Trustee. Further, the Sponsor may instruct the Trustee to use on an on-going basis a different publicly
available price which the Sponsor determines to fairly represent the commercial value of the Trusts gold.
*The
year ended December 31, 2025*
The
Trusts NAV increased from $3,756,119,448 at December 31, 2024 to $7,332,589,978 at December 31, 2025, a 95.22% increase for
the year. The change in the Trusts NAV resulted from an increase in outstanding Shares, which rose from 150,700,000 Shares
at December 31, 2024 to 178,600,000 at December 31, 2025, a result of 40,200,000 Shares (402 Baskets) being created and 12,300,000
Shares (123 Baskets) being redeemed during the year. There was also an increase in the price per ounce of gold which contributed
to the increase in the Trusts NAV, which rose 65.00% from $2,610.85 at December 31, 2024 (AM Auction Price) to $4,307.95
at December 31, 2025.
The
NAV per Share increased 64.77% from $24.92 at December 31, 2024 to $41.06 at December 31, 2025. The Trusts NAV per Share
rose slightly less than the price per ounce of gold on a percentage basis due to the Sponsors Fee, which was $9,255,459
for the year, or 0.17% of the Trusts ANAV.
The
NAV per Share of $42.70 at December 24, 2025 was the highest during the year, compared with a low of $25.14 at January 6, 2025.
The
increase in net assets from operations for the year ended December 31, 2025 was $2,653,692,212, resulting from a realized
gain of $3,756,229 on the transfer of gold to pay expenses, a realized gain of $161,708,401 on gold distributed for the
redemption of Shares and a change in unrealized gain on investment of gold of $2,497,483,041, offset by the Sponsors
Fee of $9,255,459. Other than the Sponsors Fee, the Trust had no expenses during the year ended December 31,
2025.
*The
year ended December 31, 2024*
The
Trusts NAV increased from $2,826,258,485 at December 31, 2023 to $3,756,119,448 at December 31, 2024, a 32.90% increase
for the year. The change in the Trusts NAV resulted from an increase in outstanding Shares, which rose from 142,200,000
Shares at December 31, 2023 to 150,700,000 Shares at December 31, 2024, a result of 17,600,000 Shares (176 Baskets) being created
and 9,100,000 Shares (91 Baskets) being redeemed during the year. There was also an increase in the price per ounce of gold which
contributed to the increase in the Trusts NAV, which rose 25.62% from $2,078.40 at December 31, 2023 to $2,610.85 at December
31, 2024 (AM Auction Price).
The
NAV per Share increased 25.35% from $19.88 at December 31, 2023 to $24.92 at December 31, 2024. The Trusts NAV per Share
rose slightly less than the price per ounce of gold on a percentage basis due to the Sponsors Fee, which was $5,595,961
for the year, or 0.17% of the Trusts ANAV.
The
NAV per Share of $26.53 at October 30, 2024 was the highest during the year, compared with a low of $18.98 at February 14, 2024.
The
increase in net assets from operations for the year ended December 31, 2024 was $710,639,056, resulting from a realized gain
of $1,604,086 on the transfer of gold to pay expenses, a realized gain of $53,307,136 on gold distributed for the redemption
of Shares and a change in unrealized gain on investment of gold of $661,323,795, offset by the Sponsors Fee of
$5,595,961. Other than the Sponsors Fee, the Trust had no expenses during the year ended December 31, 2024.
*The
year ended December 31, 2023*
The Trusts NAV increased from $2,442,782,637 at December 31, 2022 to $2,826,258,485 at December
31, 2023, a 15.70% increase for the year. The change in the Trusts NAV resulted from an increase in outstanding Shares, which rose
from 140,600,000 Shares at December 31, 2022 to 142,200,000 Shares at December 31, 2023, a result of 15,800,000 Shares (158 Baskets) being
created and 14,200,000 Shares (142 Baskets) being redeemed during the year and an increase in the price per ounce of gold, which rose
14.59% from $1,813.75 at December 31, 2022 to $2,078.40 at December 31, 2023.
The NAV per Share increased 14.45% from $17.37 at December
31, 2022 to $19.88 at December 31, 2023. The Trusts NAV per Share rose slightly less than the price per ounce of gold on a percentage
basis due to the Sponsors Fee, which was $4,543,699 for the year, or 0.17% of the Trusts ANAV.
The NAV per Share of $19.88
at December 28, 2023 was the highest during the year, compared with a low of $17.34 at February 24, 2023.
The increase in net assets from
operations for the year ended December 31, 2023 was $345,743,513, resulting from a realized gain of $723,330 on the transfer of gold to
pay expenses, a realized gain of $41,270,381 on gold distributed for the redemption of Shares and a change in unrealized gain on investment
of gold of $308,293,501, offset by the Sponsors Fee of $4,543,699. Other than the Sponsors Fee, the Trust had no expenses
during the year ended December 31, 2023.
*Off-Balance
Sheet Arrangements*
The
Trust is not a party to any off-balance sheet arrangements.
Item
7A. Quantitative and Qualitative Disclosures about Market Risk
The
Trust Agreement does not authorize the Trustee to borrow for payment of the Trusts ordinary expenses. The Trust does not
engage in transactions in foreign currencies which could expose the Trust or holders of Shares to any foreign currency related
market risk. The Trust invests in no derivative financial instruments and has no foreign operations or long-term debt instruments.
33
Item
8. Financial Statements and Supplementary Data *(Unaudited)*
*Quarterly
Income Statements*
**Year Ended December 31, 2025**
|
| |
Three months ended | | |
Year ended | | |
|
| |
March
31 | | |
June
30 | | |
September 30 | | |
December 31 | | |
December 31 | | |
|
(Amounts
in 000s of US$, except for Share and per Share data) | |
| | |
| | |
| | |
| | |
| | |
|
EXPENSES | |
| | |
| | |
| | |
| | |
| | |
|
Sponsors Fee | |
$ | 1,781 | | |
$ | 2,115 | | |
$ | 2,401 | | |
$ | 2,958 | | |
$ | 9,255 | | |
|
Total expenses | |
| 1,781 | | |
| 2,115 | | |
| 2,401 | | |
| 2,958 | | |
| 9,255 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Net investment loss | |
| (1,781 | ) | |
| (2,115 | ) | |
| (2,401 | ) | |
| (2,958 | ) | |
| (9,255 | ) | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
REALIZED AND
UNREALIZED GAINS / (LOSSES) | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Realized gain on gold transferred to pay expenses | |
| 606 | | |
| 858 | | |
| 961 | | |
| 1,331 | | |
| 3,756 | | |
|
Realized gain on gold distributed for the redemption of Shares | |
| 28,901 | | |
| 75,537 | | |
| 39,403 | | |
| 17,867 | | |
| 161,708 | | |
|
Change in unrealized gain and loss on investment in gold | |
| 710,060 | | |
| 181,045 | | |
| 821,650 | | |
| 784,728 | | |
| 2,497,483 | | |
|
Change in unrealized gain and loss on unsettled creations or redemptions | |
| | | |
| | | |
| 12,244 | | |
| (12,244 | ) | |
| | | |
|
Total gain/(loss) on investment in gold | |
| 739,567 | | |
| 257,440 | | |
| 874,258 | | |
| 791,682 | | |
| 2,662,947 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Change in net assets from operations | |
$ | 737,786 | | |
$ | 255,325 | | |
$ | 871,857 | | |
$ | 788,724 | |
$ | 2,653,692 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Net increase/(decrease)
in net assets per Share | |
$ | 4.82 | | |
$ | 1.57 | | |
$ | 5.24 | | |
$ | 4.46 | |
$ | 16.11 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Weighted average number of Shares | |
| 153,024,444 | | |
| 162,505,495 | | |
| 166,417,391 | | |
| 176,713,043 | | |
| 164,734,795 | | |
34
**Year
Ended December 31, 2024**
|
| |
Three
months ended | | |
Year
ended | | |
|
| |
March
31 | | |
June
30 | | |
September
30 | | |
December
31 | | |
December
31 | | |
|
(Amounts
in 000s of US$, except for Share and per Share data) | |
| | |
| | |
| | |
| | |
| | |
|
EXPENSES | |
| | |
| | |
| | |
| | |
| | |
|
Sponsors
Fee | |
$ | 1,179 | | |
$ | 1,321 | | |
$ | 1,475 | | |
$ | 1,621 | | |
$ | 5,596 | | |
|
Total
expenses | |
| 1,179 | | |
| 1,321 | | |
| 1,475 | | |
| 1,621 | | |
| 5,596 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Net investment
loss | |
| (1,179 | ) | |
| (1,321 | ) | |
| (1,475 | ) | |
| (1,621 | ) | |
| (5,596 | ) | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
REALIZED
AND UNREALIZED GAINS / (LOSSES) | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Realized
gain on gold transferred to pay expenses | |
| 241 | | |
| 369 | | |
| 432 | | |
| 562 | | |
| 1,604 | | |
|
Realized
gain on gold distributed for the redemption of Shares | |
| 19,829 | | |
| 5,885 | | |
| 5,234 | | |
| 22,359 | | |
| 53,307 | | |
|
Change
in unrealized gain and loss on investment in gold | |
| 157,687 | | |
| 149,427 | | |
| 406,988 | | |
| (52,778 | ) | |
| 661,324 | | |
|
Change
in unrealized gain and loss on unsettled creations or redemptions | |
| 104 | | |
| (104 | ) | |
| | | |
| | | |
| | | |
|
Total
(loss)/gain on investment in gold | |
| 177,861 | | |
| 155,577 | | |
| 412,654 | | |
| (29,857 | ) | |
| 716,235 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Change
in net assets from operations | |
$ | 176,682 | | |
$ | 154,256 | | |
$ | 411,179 | | |
$ | (31,478 | ) | |
$ | 710,639 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Net
increase in net assets per Share | |
$ | 1.27 | | |
$ | 1.10 | | |
$ | 2.84 | | |
$ | (0.21 | ) | |
$ | 4.94 | | |
|
| |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Weighted
average number of Shares | |
| 139,314,286 | | |
| 140,829,670 | | |
| 144,607,609 | | |
| 150,166,304 | | |
| 143,749,454 | | |
*Note:
Quarterly balances may not add to totals due to independent rounding.*
The
financial statements required by Regulation S-X, together with the report of the Trusts independent registered public accounting
firm appear on pages F-1 to F-13 of this filing.
Item
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item
9A. Controls and Procedures
*Conclusion
Regarding the Effectiveness of Disclosure Controls and Procedures*
The
Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its
Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange
Commissions 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 Trusts 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 December 31, 2025, the Trusts disclosure controls and procedures were effective.
Internal
controls over financial reporting have been maintained throughout the Trusts fiscal year ended December 31, 2025. There
have been no changes that have materially affected, or are reasonably likely to materially affect, the Trusts or Sponsors
internal control over financial reporting.
35
*Managements
Report on Internal Control over Financial Reporting*
The
Sponsors management is responsible for establishing and maintaining adequate internal control over financial reporting,
as defined under Exchange Act Rules 13a-15(f) and 15d-15(f). The Trusts internal control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with accounting principles generally accepted in the United States. Internal control
over financial reporting includes those policies and procedures that:
(1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the Trusts assets;
(2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that the Trusts receipts and expenditures are being made only in accordance
with appropriate authorizations; and
(3)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the
Trusts assets that could have a material effect on the financial statements.
Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become ineffective because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
The
Chief Executive Officer and Chief Financial Officer of the Sponsor assessed the effectiveness of the Trusts internal control
over financial reporting as of December 31, 2025. In making this assessment, they used the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) in *Internal ControlIntegrated Framework (2013)*. Their
assessment included an evaluation of the design of the Trusts internal control over financial reporting and testing of
the operational effectiveness of its internal control over financial reporting. Based on their assessment and those criteria,
the Chief Executive Officer and Chief Financial Officer of the Sponsor concluded that the Trust maintained effective internal
control over financial reporting as of December 31, 2025.
KPMG
LLP, the independent registered public accounting firm that audited and reported on the financial statements included in this
Form 10-K, as stated in their report which is included herein, issued an attestation report on the effectiveness of the Trusts
internal control over financial reporting as of December 31, 2025.
36
Report
of Independent Registered Public Accounting Firm
Item
9B. Other Information
No
officers or directors of the Trust have adopted, modified or terminated trading plans under either a Rule 10b5-1 or non-Rule 10b5-1
trading arrangement for the year ended December 31, 2025.
Item
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not
applicable.
37
PART
III
Item
10. Directors, Executive Officers and Corporate Governance
The
Trust has no officers, employees or board of trustees and is administered by the Trustee pursuant to the Trust Agreement. Accordingly,
the Trust has not adopted a code of ethics or an insider trading policy governing the purchase, sale and other disposition of
the Trusts securities. The biographies of the President and Chief Executive Officer of the Sponsor and the Chief Financial
Officer and Treasurer of the Sponsor are set out below:
Steven
Dunn President and Chief Executive Officer
Steven
Dunn, CIMA, is the Head of US Wealth Management at Aberdeen Investments Mr. Dunn also guides the firms strategic
direction and distribution strategy for ETFs. Previously, he was a Director with Deutsche Asset and Wealth Management in charge of
managing relationships with US ETF Strategists and overseeing the Eastern Division sales team. Prior to that, Mr. Dunn was a
consultant at Brandywine Global Investment Management and has also held sales and distribution strategy positions at iShares,
Blackrock and Vanguard. Mr. Dunn holds a B.A. degree in Public Administration from Shippensburg University of Pennsylvania and has
completed his MBA at Pennsylvania State University. He holds the Series 7, 24, and 63 registrations as well as the Certified
Investment Management Analyst (CIMA).
Sharon
Ferrari Chief Financial Officer and Treasurer
Sharon
Ferrari is currently a Director, Product Management at abrdn Inc. (the parent company of the Sponser). Sharon joined abrdn Inc. in
2008. Prior to working at abrdn Inc., Sharon worked at Delaware Investments for about 3 years and began her career at SEI Investments.
Ms. Ferrari holds a BS in Business Administration from University of Pittsburgh and a MBA from Villanova University.
Item
11. Executive Compensation
The
Trust has no directors or executive officers. The only ordinary expense paid by the Trust is the Sponsors Fee.
**Item
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters****
**
*Security Ownership of
Certain Beneficial Owners*
There
are no persons known by the Trust to own directly or indirectly beneficially more than 5% of the outstanding Shares of the Trust.
38
*Security
Ownership of Management*
Not
applicable.
*Change
in Control*
Neither
the Sponsor nor the Trustee knows of any arrangements which may subsequently result in a change in control of the Trust.
Item
13. Certain Relationships and Related Transactions, and Director Independence
The
Trust has no directors or executive officers.
Item 14. Principal Accounting Fees and Services
Fees for services performed by KPMG LLP for the years ended December 31, 2025 and 2024
|
| |
| December
31, 2025 | | |
| December
31, 2024 | | |
|
Audit fees KPMG | |
$ | 80,000 | | |
$ | 94,000 | | |
|
Audit related fees KPMG | |
| | |
| | |
|
| |
$ | 80,000 | | |
$ | 94,000 | | |
Audit
Fees are fees paid by the Sponsor to KPMG LLP for professional services for the audit of the Trusts financial
statements included in the Form 10-K and review of financial statements included in the Form 10-Qs, and for services that are
normally provided by the accountants in connection with regulatory filings or engagements. Audit Related Fees are paid by the
Sponsor to KPMG LLP for assurance and related services that are reasonably related to the performance of the audit or review
of the Trusts financial statements. These services include the accountant providing a consent letter related to the
Trusts registration statement filing.
Pre-Approval
Policies and Procedures
As
referenced in Item 10 above, the Trust has no board of directors, and as a result, has no pre-approval policies or procedures
with respect to fees paid to KPMG LLP. Such determinations are made by the Sponsor.
39
PART IV
Item 15. Exhibits, Financial Statement Schedules
**1.
Financial Statements**
See Index to Financial Statements on Page F-1 for
a list of the financial statements being filed herein.
2. Financial Statement Schedules
Schedules have been omitted since they are either
not required, not applicable, or the information has otherwise been included.
3. Exhibits
|
Exhibit
No. |
Description | |
|
4.1(a) | Depositary
Trust Agreement, incorporated by reference to Exhibit 4.1 filed with Registration Statement No. 333-158221 on September
1, 2009 | |
|
4.1(b) | Amendment
to the Depositary Trust Agreement incorporated by reference to Exhibit 4.1 filed with Registration Statement No.
333-234637 on November 12, 2019 | |
|
4.1(c) | Second
Amendment to the Depositary Trust Agreement incorporated by reference to Exhibit 4.1 filed with the Trusts Current
Report on Form
8-K on December 6, 2018 | |
|
4.1(d) | Third
Amendment to the Depository Trust Agreement incorporated by reference to Exhibit 4.1 filed with the Trusts Current
Report on Form
8-K on June 13, 2019 | |
|
4.1(e) | Fourth
Amendment to the Depository Trust Agreement incorporated by reference to Exhibit 4.1 filed with the Trusts Current
Report on
Form 8-K on March 14, 2022 | |
|
4.1(f) | Fifth
Amendment to the Depository Trust Agreement incorporated by reference to Exhibit 4.1 filed on Form 8-K on May 28, 2024 | |
|
4.2 | Form of Authorized Participant Agreement, incorporated by reference to Exhibit 4.2 filed with the Trust's Annual Report on Form 10-K on February 28, 2025. |
|
|
4.3 | Certificate
of Beneficial Interest, incorporated by reference to Exhibit 4.3 filed with Registration Statement No. 333-158221 on
September 1, 2009 | |
|
10.1 | Allocated
Account Agreement, incorporated by reference to Exhibit 10.1 filed with the Trusts Current Report on Form 8-K
on
May 28, 2024 | |
|
10.2 |
Unallocated Account Agreement, incorporated by reference to Exhibit 10.2 filed with the Trusts Current Report on Form 8-K on May 28, 2024 | |
|
|
| |
|
10.3 |
Depository Agreement, incorporated by reference to Exhibit 10.3 filed with Registration Statement No. 333-158221 on September 1, 2009 | |
|
|
| |
|
10.4(a) |
Marketing Agent Agreement, incorporated by reference to Exhibit 10.4 filed with Registration Statement No. 333-158221 on September 1, 2009 | |
|
|
| |
|
10.4(b) |
Novation of and Amendment No. 1 to the Marketing Agent Agreement incorporated by reference to Exhibit 10.4(b) filed with the Trusts Annual Report on Form 10-K on February 28, 2019. | |
|
|
| |
|
23.1 |
Consent of KPMG LLP, Independent Registered Public Accounting Firm | |
|
|
| |
|
31.1 |
Chief Executive Officers Certificate, pursuant to Section
302 of the Sarbanes-Oxley Act of 2002 | |
|
|
| |
|
31.2 |
Chief Financial Officers Certificate, pursuant to Section
302 of the Sarbanes-Oxley Act of 2002 | |
|
|
| |
|
32.1 |
Chief Executive Officers Certificate, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
40
|
|
| |
|
32.2 |
Chief Financial Officers Certificate, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
|
|
| |
|
97.1 |
Policy for Recovery of Erroneously Awarded Compensation, incorporated by reference to Exhibit 97.1 filed with the Trusts Annual Report of Form 10-K on February 29, 2024. | |
|
|
| |
|
101 |
The following financial statements from the Trusts Annual Report on Form 10-K for the year ended December 31, 2025, 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 Trusts Annual Report on Form 10-K for the year ended December
31, 2025, formatted in Inline XBRL (included as Exhibit 101). | |
Item 16. Form 10-K Summary
Not applicable.
41
ABRDN GOLD ETF
TRUST
Financial Statements
as of December 31, 2025
Index
**Page**
|
Report of Independent Registered Public Accounting Firm |
F-2 | |
|
Statements of Assets and Liabilities at December 31, 2025 and 2024 |
F-4 | |
|
Schedules of Investments at December 31, 2025 and 2024 |
F-5 | |
|
Statements of Operations for the y ears ended December 31, 2025, 2024 and 2023 |
F-6 | |
|
Statements of Changes in Net Assets for the y ears ended December 31, 2025, 2024, 2023 |
F-7 | |
|
Financial Highlights for the y ears ended December 31, 2025, 2024 and 2023 |
F-8 | |
|
Notes to the Financial Statements |
F-9 | |
F-1
*KPMG LLP
Suite 4000
1735 Market Street
Philadelphia, PA 19103-7501
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Sponsor, Trustee and Shareholders
abrdn Gold ETF Trust:
Auditor Opinion
Opinion on Internal Control Over Financial
Reporting
We have audited abrdn Gold ETF Trust's
(the Trust) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal
Control Integrated Framework (2013)*issued by the Committee of Sponsoring Organizations
of the Treadway Commission. In our opinion,the Trust maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2025, based on criteria established in *Internal Control Integrated Framework (2013)*
issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance
with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the statements of assets and liabilities
of the Trust, including the schedules of investments as of December 31, 2025 and December 31, 2024, the related statements of operations
and changes in net assets and the financial highlights for each of the years in the three-year period ended December 31, 2025, and the
related notes (collectively, the financial statements), and our report dated March 2, 2026 expressed an unqualified opinion on those
financial statements.
Basis for Opinion
The Trusts management is responsible
for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over
financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility
is to express an opinion on the Trusts internal control over financial reporting based on our audit. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Trust in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance
with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial
reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion.
Definition and Limitations of Internal Control
Over Financial Reporting
A companys internal control
over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys
internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management
and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the companys assets that could have a material effect on the financial statements.
|
|
KPMG LLP, a Delaware limited liability partnership, and its subsidiaries are part of the KPMG global organization of independent member
firms affiliated with KPMG International Limited, a private English company limited by guarantee. |
| |
F-2
*
Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Philadelphia, Pennsylvania
March 2, 2026
Auditor ID: 185
F-3
**abrdn
Gold ETF Trust**
Statements
of Assets and Liabilities
At
December 31, 2025and 2024
|
| |
December 31, 2025 | | |
December 31, 2024 | | |
|
(Amounts in 000s of US$, except for Share and per Share data) | |
| | | |
| | | |
|
ASSETS | |
| | | |
| | | |
|
Investment in gold (cost: December 31, 2025: $3,555,799; December 31, 2024: $2,476,303) | |
$ | 7,333,647 | | |
$ | 3,756,668 | | |
|
Total assets | |
| 7,333,647 | | |
| 3,756,668 | | |
|
| |
| | | |
| | | |
|
LIABILITIES | |
| | | |
| | | |
|
Fees payable to Sponsor | |
| 1,057 | | |
| 548 | | |
|
Total liabilities | |
| 1,057 | | |
| 548 | | |
|
| |
| | | |
| | | |
|
NET ASSETS(1) | |
$ | 7,332,590 | | |
$ | 3,756,120 | | |
|
(1) |
Authorized
share capital is Unlimited with no par value per Share. Shares issued and outstanding at December 31, 2025 were 178,600,000
and at December 31, 2024 were 150,700,000. Net asset values per Share at December 31, 2025 and December 31, 2024 were $41.06
and $24.92, respectively. | |
**See
Notes to the Financial Statements**
F-4
**abrdn
Gold ETF Trust**
Schedules
of Investments
At
December 31, 2025 and 2024
|
| |
December 31, 2025 | | |
|
Description | |
oz | | |
Cost | | |
Fair Value | | |
% of Net Assets | | |
|
Investment in gold (in 000s of US$, except for oz and percentage data) | |
|
Gold | |
| 1,702,351.9 | | |
$ | 3,555,799 | | |
$ | 7,333,647 | | |
| 100.01 | % | |
|
Total investment in gold | |
| 1,702,351.9 | | |
$ | 3,555,799 | | |
$ | 7,333,647 | | |
| 100.01 | % | |
|
Less liabilities | |
| | | |
| | | |
| (1,057 | ) | |
| (0.01 | )% | |
|
Net Assets | |
| | | |
| | | |
$ | 7,332,590 | | |
| 100.00 | % | |
|
| |
December 31, 2024 | | |
|
Description | |
oz | | |
Cost | | |
Fair Value | | |
% of Net Assets | | |
|
Investment in gold (in 000s of US$, except for oz and percentage data) | |
|
Gold | |
| 1,438,867.8 | | |
$ | 2,476,303 | | |
$ | 3,756,668 | | |
| 100.01 | % | |
|
Total investment in gold | |
| 1,438,867.8 | | |
$ | 2,476,303 | | |
$ | 3,756,668 | | |
| 100.01 | % | |
|
Less liabilities | |
| | | |
| | | |
| (548 | ) | |
| (0.01 | )% | |
|
Net Assets | |
| | | |
| | | |
$ | 3,756,120 | | |
| 100.00 | % | |
**See
Notes to the Financial Statements**
F-5
**abrdn
Gold ETF Trust**
Statements
of Operations
For
the years ended December 31, 2025, 2024, and 2023
|
| |
Year Ended December 31, 2025 | | |
Year Ended December 31, 2024 | | |
Year Ended December 31, 2023 | | |
|
(Amounts in 000s of US$, except for Share and per Share data) | |
| | | |
| | | |
| | | |
|
EXPENSES | |
| | | |
| | | |
| | | |
|
Sponsors Fee | |
$ | 9,255 | | |
$ | 5,596 | | |
$ | 4,544 | | |
|
Total expenses | |
| 9,255 | | |
| 5,596 | | |
| 4,544 | | |
|
Net investment loss | |
| (9,255 | ) | |
| (5,596 | ) | |
| (4,544 | ) | |
|
| |
| | | |
| | | |
| | | |
|
REALIZED AND UNREALIZED GAINS / (LOSSES) | |
| | | |
| | | |
| | | |
|
Realized gain on gold transferred to pay expenses | |
| 3,756 | | |
| 1,604 | | |
| 723 | | |
|
Realized gain on gold distributed for the redemption of Shares | |
| 161,708 | | |
| 53,307 | | |
| 41,270 | | |
|
Change in unrealized gain on investment in gold | |
| 2,497,483 | | |
| 661,324 | | |
| 308,294 | | |
|
Total gain on investment in gold | |
| 2,662,947 | | |
| 716,235 | | |
| 350,287 | | |
|
| |
| | | |
| | | |
| | | |
|
Change in net assets from operations | |
$ | 2,653,692 | | |
$ | 710,639 | | |
$ | 345,743 | | |
|
| |
| | | |
| | | |
| | | |
|
Net increase in net assets per Share | |
$ | 16.11 | | |
$ | 4.94 | | |
$ | 2.41 | | |
|
| |
| | | |
| | | |
| | | |
|
Weighted average number of Shares | |
| 164,734,795 | | |
| 143,749,454 | | |
| 143,583,562 | | |
**See
Notes to the Financial Statements**
F-6
**abrdn
Gold ETF Trust**
Statements
of Changes in Net Assets
For
the years ended December 31, 2025, 2024 and 2023
|
| |
Year Ended December 31, 2025 | | |
|
(Amounts in 000s of US$, except for Share data) | |
Shares | | |
Amount | | |
|
Opening balance at January 1, 2025 | |
| 150,700,000 | | |
$ | 3,756,120 | | |
|
Net investment loss | |
| | | |
| (9,255 | ) | |
|
Realized gain on investment in gold | |
| | | |
| 165,464 | | |
|
Change in unrealized gain on investment in gold | |
| | | |
| 2,497,483 | | |
|
Creations | |
| 40,200,000 | | |
| 1,302,653 | | |
|
Redemptions | |
| (12,300,000 | ) | |
| (379,875 | ) | |
|
Closing balance at December 31, 2025 | |
| 178,600,000 | | |
$ | 7,332,590 | | |
|
| |
Year Ended December 31, 2024 | | |
|
(Amounts in 000s of US$, except for Share data) | |
Shares | | |
Amount | | |
|
Opening balance at January 1, 2024 | |
| 142,200,000 | | |
$ | 2,826,258 | | |
|
Net investment loss | |
| | | |
| (5,596 | ) | |
|
Realized gain on investment in gold | |
| | | |
| 54,911 | | |
|
Change in unrealized gain on investment in gold | |
| | | |
| 661,324 | | |
|
Creations | |
| 17,600,000 | | |
| 416,212 | | |
|
Redemptions | |
| (9,100,000 | ) | |
| (196,989 | ) | |
|
Closing balance at December 31, 2024 | |
| 150,700,000 | | |
$ | 3,756,120 | | |
|
| |
Year Ended December 31, 2023 | | |
|
(Amounts in 000s of US$, except for Share data) | |
Shares | | |
Amount | | |
|
Opening balance at January 1, 2023 | |
| 140,600,000 | | |
$ | 2,442,783 | | |
|
Net investment loss | |
| | | |
| (4,544 | ) | |
|
Realized gain on investment in gold | |
| | | |
| 41,993 | | |
|
Change in unrealized gain on investment in gold | |
| | | |
| 308,294 | | |
|
Creations | |
| 15,800,000 | | |
| 297,378 | | |
|
Redemptions | |
| (14,200,000 | ) | |
| (259,646 | ) | |
|
Closing balance at December 31, 2023 | |
| 142,200,000 | | |
$ | 2,826,258 | | |
**See
Notes to the Financial Statements**
F-7
**abrdn
Gold ETF Trust**
Financial
Highlights
For
the yearsended December 31, 2025, 2024and 2023
|
| |
Year Ended December 31, 2025 | | |
Year Ended December 31, 2024 | | |
Year Ended December 31, 2023 | | |
|
Per Share Performance (for a Share outstanding throughout the entire period)(1) | |
| | | |
| | | |
| | | |
|
Net asset value per Share at beginning of period | |
$ | 24.92 | | |
$ | 19.88 | | |
$ | 17.37 | | |
|
Income from investment operations: | |
| | | |
| | | |
| | | |
|
Net investment loss | |
| (0.06 | ) | |
| (0.04 | ) | |
| (0.03 | ) | |
|
Total realized and unrealized gains or losses on investment in gold | |
| 16.20 | | |
| 5.08 | | |
| 2.54 | | |
|
Change in net assets from operations | |
| 16.14 | | |
| 5.04 | | |
| 2.51 | | |
|
| |
| | | |
| | | |
| | | |
|
Net asset value per Share at end of period | |
$ | 41.06 | | |
$ | 24.92 | | |
$ | 19.88 | | |
|
| |
| | | |
| | | |
| | | |
|
Weighted average number of Shares(1) | |
| 164,734,795 | | |
| 143,749,454 | | |
| 143,583,562 | | |
|
| |
| | | |
| | | |
| | | |
|
Expense ratio | |
| 0.17 | % | |
| 0.17 | % | |
| 0.17 | % | |
|
| |
| | | |
| | | |
| | | |
|
Net investment loss ratio | |
| (0.17 | )% | |
| (0.17 | )% | |
| (0.17 | )% | |
|
| |
| | | |
| | | |
| | | |
|
Total return, net asset value | |
| 64.77 | % | |
| 25.35 | % | |
| 14.45 | % | |
****
**See
Notes to the Financial Statements**
F-8
abrdn
Gold ETF Trust
Notes
to the Financial Statements
|
1. | Organization |
|
The
abrdn Gold ETF Trust (the Trust) is a common law trust formed on September 1, 2009 under New York law pursuant
to a depositary trust agreement (the Trust Agreement) executed by abrdn ETFs Sponsor LLC (the
Sponsor) and The Bank of New York Mellon as Trustee (the Trustee). The Trust holds gold and
issues abrdn Physical Gold Shares ETF (Shares) in minimum blocks of 100,000 Shares (also referred to as
Baskets) in exchange for deposits of gold and distributes gold 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 abrdn Inc., which is a
wholly-owned indirect subsidiary of Aberdeen Group 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 gold bullion, less the Trusts
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 gold market through an investment in securities.
|
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 ServicesInvestment 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 Gold |
|
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
Trusts gold is recorded at fair value. The cost of gold is determined according to the average cost method and the fair
value is based on the London Bullion Market Association (LBMA) Gold Price PM. If there is no LBMA Gold Price PM
on any day, the Trustee is authorized to use the LBMA Gold Price AM announced on that day. If neither price is available for that
day, the Trustee will value the Trusts gold based on the most recently announced LBMA Gold Price PM or LBMA Gold Price
AM. Realized gains and losses on transfers of gold, or gold distributed for the redemption of Shares, are calculated on a trade
date basis as the difference between the fair value and average cost of gold transferred.
F-9
abrdn
Gold ETF Trust
Notes
to the Financial Statements
The
LBMA Gold Price PM is set using the afternoon session of the ICE Benchmark Administration (IBA) equilibrium auction,
an electronic, tradable and auditable over-the-counter auction market with the ability to participate in US Dollars, Euros or
British Pounds for LBMA-authorized participating gold bullion banks or market makers that establishes a reference gold price for
that days trading.
Once
the value of gold 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 Sponsors
Fee), from the fair value of the gold and all other assets held by the Trust.
The
Trust recognizes changes in fair value of the investment in gold as changes in unrealized gains or losses on investment in gold
through the Statement of Operations.
The
per Share amount of gold exchanged for a purchase or redemption is calculated daily by the Trustee using the LBMA Gold Price PM
to calculate the gold amount in respect of any liabilities for which covering gold sales have not yet been made, and represents
the per Share amount of gold 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 Trusts 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
Trusts investment in gold is classified as a level 1 asset, as its value is calculated using unadjusted quoted prices from
primary market sources.
The categorization of the Trusts assets is as shown below:
|
(Amounts
in 000s of US$) | |
December
31, 2025 | | |
December
31, 2024 | | |
|
Level
1 Investment
in gold | |
$ | 7,333,647 | | |
$ | 3,756,668 | | |
There were no transfers between levels during the years ended December 31, 2025 and 2024.
F-10
**abrdn
Gold ETF Trust **
Notes to the Financial Statements
|
2.3. | Gold
Receivable and Payable |
|
Gold
receivable or payable represents the quantity of gold covered by contractually binding orders for the creation or redemption of
Shares respectively, where the gold has not yet been transferred to or from the Trusts account. Generally, ownership of
gold is transferred within one business day of the trade date. At December 31, 2025, the Trust had no gold receivable or payable
for the creation or redemption of Shares. At December 31, 2024, the Trust had no gold 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
100,000 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 Trusts Custodian or other gold 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 gold required for such
creations and redemptions. An Authorized Participant Unallocated Account is an unallocated gold account established with the
Custodian or a gold bullion clearing bank by an Authorized Participant.
The
creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of
the amount of gold 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. Effective May
28, 2024, the settlement period for Shares is one business day. 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 gold is exchanged in settlement of a redemption,
it is considered a sale of gold for financial statement purposes.
The
amount of gold 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 gold to be delivered or
distributed by the Trust. In order to ensure that the correct amount of gold is available at all times to back the Shares,
the Sponsor accepts an adjustment to its Sponsor Fee 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 gold.
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 Trusts income and expenses will flow through to the
Shareholders, and the Trustee will report the Trusts 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 December 31, 2025 or December 31, 2024.
F-11
abrdn
Gold ETF Trust
Notes
to the Financial Statements
|
2.6. | Investment
in Gold |
|
Changes
in ounces of gold and their respective values for the years ended December 31, 2025 and 2024 are set out below:
|
| |
Year Ended December
31, 2025 | | |
Year Ended December
31, 2024 | | |
|
(Amounts in 000s of US$, except for ounces data) | |
| | | |
| | | |
|
Ounces of gold | |
| | | |
| | | |
|
Opening balance | |
| 1,438,867.8 | | |
| 1,360,020.7 | | |
|
Creations | |
| 383,467.5 | | |
| 168,136.1 | | |
|
Redemptions | |
| (117,346.5 | ) | |
| (86,966.1 | ) | |
|
Transfers of gold to pay expenses | |
| (2,636.9 | ) | |
| (2,322.9 | ) | |
|
Closing balance | |
| 1,702,351.9 | | |
| 1,438,867.8 | | |
|
| |
| | | |
| | | |
|
Investment in gold | |
| | | |
| | | |
|
Opening balance | |
$ | 3,756,668 | | |
$ | 2,826,667 | | |
|
Creations | |
| 1,302,653 | | |
| 416,212 | | |
|
Redemptions | |
| (379,875 | ) | |
| (196,989 | ) | |
|
Realized gain on gold distributed for the redemption of Shares | |
| 161,708 | | |
| 53,307 | | |
|
Transfers of gold to pay expenses | |
| (8,746 | ) | |
| (5,457 | ) | |
|
Realized gain on gold transferred to pay expenses | |
| 3,756 | | |
| 1,604 | | |
|
Change in unrealized gain on investment in gold | |
| 2,497,483 | | |
| 661,324 | | |
|
Closing balance | |
$ | 7,333,647 | | |
$ | 3,756,668 | | |
|
2.7. | Expenses
/ Realized Gains / Losses |
|
The
primary expense of the Trust is the Sponsors Fee, which is paid by the Trust through in-kind transfers of gold to the Sponsor.
The
Trust will transfer gold to the Sponsor to pay the Sponsors Fee that accrues daily at an annualized rate equal to 0.17%
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 Trustees monthly
fee and out of pocket expenses, the Custodians fee and the reimbursement of the Custodians 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 years ended December 31, 2025, 2024 and 2023, the Sponsors Fee was the Sponsor, was $9,255,459, $5,595,961 and $4,543,699,
respectively.
At
December 31, 2025 and at December 31, 2024, the fees payable to the Sponsor were $1,056,687 and $548,448, 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 Trusts gold as necessary to pay these expenses. When selling gold to pay expenses, the Trustee will endeavor to
sell the smallest amounts of gold needed to pay these expenses in order to minimize the Trusts holdings of assets other
than gold. Other than the Sponsors Fee, the Trust had no expenses during the years ended December 31, 2025 and 2024.
Unless
otherwise directed by the Sponsor, when selling gold the Trustee will endeavor to sell at the price established by the LBMA Gold
Price PM for each metal held by the Trust. 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
gold only if the sale transaction is made at the next LBMA Gold Price PM 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 gold 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 gold 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 gold transferred.
F-12
|
2.8 | Segment
Reporting |
|
Adoption of the new standard impacted disclosures only and did
not affect the Trusts financial position nor the results of its operations. Operating segments are components of a public entity
that engage in business activities from which it may recognize revenues and incur expenses, have discrete financial information
available, and have their operating results regularly reviewed by the public entitys chief operating decision maker (CODM)
when assessing segment performance and making decisions about segment resources. The Chief Financial Officer of the Sponsor acts
as the Trusts CODM. The CODM monitors the operating results of the Trust as a whole, and the Trusts asset allocation is managed
in accordance with its Prospectus. The Trust operates as a single operating and reporting segment pursuant to its investment objective
and principal investment strategy. The Trusts prospectus describes the Trusts fees, investment objective, principal investment
strategy and principal risks, among other items. The Trusts portfolio composition, total returns, expense ratios and changes in
net assets used by the CODM to assess segment performance and make resource allocations are consistent with the information presented
within the Trusts financial statements. The accompanying financial statements detail the Trusts segment assets, liabilities,
revenues, and expenses. Segment assets are reflected on the Trusts Statement of Assets and Liabilities as Total Assets
and significant segment expenses are listed on the Statement of Operations.
|
2.9. | Subsequent
Events |
|
In
accordance with the provisions set forth in FASB ASC 855-10, *Subsequent Events*, the Trusts management has evaluated
the possibility of subsequent events impacting the Trusts 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 gold directly, for their own account, as agent for their customers and for accounts over
which they exercise investment discretion. The Trustees and Custodians fees are paid by the Sponsor and are not
separate expenses of the Trust.
|
4. | Concentration
of Risk |
|
The
Trusts sole business activity is the investment in gold, and substantially all the Trusts assets are holdings
of gold, which creates a concentration of risk associated with fluctuations in the price of gold. Several factors could
affect the price of gold, including: (i) global gold supply and demand, which is influenced by factors such as forward
selling by gold producers, purchases made by gold producers to unwind gold hedge positions, central bank purchases and sales,
and production and cost levels in major global gold-producing countries; (ii) investors expectations with respect to
the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge
funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. In addition,
there is no assurance that gold will maintain its long-term value in terms of purchasing power in the future. In the event
that the price of gold 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 Trusts financial position and results of
operations.
|
5. | Indemnification |
|
Under
the Trusts 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 Trusts organizational documents. The Trusts 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.
F-13
abrdn
Gold 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.
|
|
abrdn ETFs Sponsor LLC | |
|
|
| |
|
Date: March 2, 2026 |
/s/ Steven
Dunn* | |
|
|
Steven Dunn** | |
|
|
President
and Chief Executive Officer
(Principal
Executive Officer) | |
|
Date: March 2, 2026 |
/s/ Sharon
Ferrari* | |
|
|
Sharon Ferrari** | |
|
|
Chief
Financial Officer and Treasurer
(Principal
Financial Officer and Principal Accounting Officer) | |
|
* | The
originally executed copy of this Certification will be maintained at the Sponsors offices and will be made available for
inspection upon request. |
|
|
** | The
Registrant is a trust and the persons are signing in their capacities as officers of abrdn ETFs Sponsor LLC, the Sponsor of the
Registrant. |
|
**Exhibit Index**
|
Exhibit
No. |
|
Description | |
|
23.1 |
|
Consent of KPMG LLP, Independent Registered Public Accounting Firm |
|
|
31.1 |
|
Chief Executive Officers Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
|
31.2 |
|
Chief Financial Officers Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
|
32.1 |
|
Chief Executive Officers 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 Officers 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
Trusts Annual Report on Form 10-K for the year ended December 31, 2025, 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 |
|
XBRL Taxonomy Extension Schema Document | |
|
101.CAL |
|
XBRL Taxonomy Extension Calculation Document | |
|
101.DEF |
|
XBRL Taxonomy Extension Definitions Document | |
|
101.LAB |
|
XBRL Taxonomy Extension Labels Document | |
|
101.PRE |
|
XBRL Taxonomy Extension Presentation Document | |
|
104 |
|
The cover page from the Trusts Annual
Report on Form 10-K for the year ended December 31, 2025, formatted in Inline XBRL (included as Exhibit 101). | |