abrdn Silver ETF Trust (SIVR) risk factors, FY2025 10-K

RISKS RELATED TO SILVER

1. 01The value of the Shares relates directly to the value of the silver held by the Trust and fluctuations in the price of silver could materially adversely affect an investment in the Shares
2. 02The price of physical silver has fluctuated widely over the past several years
3. 03Crises may motivate large-scale sales of silver which could decrease the price of silver and adversely affect an investment in the Shares
4. 04The price of silver may be affected by the sale of ETVs tracking the silver market

RISKS RELATED TO THE SHARES

1. 05The Shares and their value could decrease if unanticipated operational or trading problems arise
2. 06Discrepancies, disruptions or unreliability of the LBMA Silver Price could impact the value of the Trust’s silver and the market price of the Shares
3. 07If 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 silver may not exist and, as a result, the price of the Shares may fall
4. 08A possible “short squeeze” due to a sudden increase in demand of Shares that largely exceeds supply may lead to price volatility in the Shares
5. 09The liquidity of the Shares may be affected by the withdrawal from participation of one or more Authorized Participants
6. 10Shareholders 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
7. 11The Trust may be required to terminate and liquidate at a time that is disadvantageous to Shareholders
8. 12The lack of an active trading market for the Shares may result in losses on investment at the time of disposition of the Shares
9. 13Shareholders do not have the rights enjoyed by investors in certain other vehicles
10. 14An investment in the Shares may be adversely affected by competition from other methods of investing in silver
11. 15The sale of the Trust’s silver to pay expenses not assumed by the Sponsor, or unexpected liabilities affecting the Trust, at a time of low silver prices could adversely affect the value of the Shares
12. 16The value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor or the Trustee under the Trust Agreement
13. 17The 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, London and COMEX

RISKS RELATED TO THE CUSTODY OF SILVER

1. 18The Trust’s silver may be subject to loss, damage, theft or restriction on access
2. 19The Trust’s 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 Trust’s silver for which no person is liable
3. 20The Custodian’s limited liability under the Custody Agreements and English law may impair the ability of the Trust to recover losses concerning its silver and any recovery may be limited, even in the event of fraud, to the market value of the silver at the time the fraud is discovered
4. 21The 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 silver
5. 22The Trust may not have adequate sources of recovery if its silver is lost, damaged, stolen or destroyed
6. 23Because the Trustee does not, and the Custodian has limited obligations to, oversee or monitor the activities of sub-custodians who may hold the Trust’s silver, failure by the sub-custodians to exercise due care in the safekeeping of the Trust’s silver could result in a loss to the Trust
7. 24The obligations of any sub-custodian of the Trust’s silver are not determined by contractual arrangements but by LBMA rules and London bullion market customs and practices, which may prevent the Trust’s recovery of damages for losses on its silver custodied with sub-custodians
8. 25Silver 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 silver, the Trust may suffer a loss

GENERAL RISKS

1. 26Potential conflicts of interest may arise among the Sponsor or its affiliates and the Trust