UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 10-Q

 

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

for the quarterly period ended December 31, 2023.

 

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: 001-36851

 

Amplify Commodity Trust
(Exact Name of Registrant as Specified in Its Charter)

 

Delaware   36-4793446
(State or Other Jurisdiction of
Incorporation or Organization)		   (I.R.S. Employer
Identification No.)
     

3333 Warrenville Road

Suite 350, Lisle, IL

   60532
(Address of Principal Executive Offices)   (Zip Code)

 

855-267-3837

(Registrant’s Telephone Number, Including Area Code)

 

ETF Managers Group Commodity Trust I

30 Maple Street

Summit, NJ 07901

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

 

Securities Registered Pursuant to Section 12(b) of the Act:

 

Title of Each Class   Trading Symbol(s)   Name Of Each Exchange On Which Registered
Shares of Breakwave Dry Bulk Shipping ETF   BDRY   NYSE Arca, Inc.
Shares of Breakwave Tanker Shipping ETF   BWET   NYSE Arca, Inc.

 

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, 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 in Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes   ☒ No

 

Securities Registered Pursuant to Section 12(b) of the Act: 

 

The registrant had 4,050,040 outstanding shares as of February 1, 2024. (BDRY)

 

The registrant had 825,100 outstanding shares as of February 1, 2024. (BWET)

 

 

 

 

 

 

AMPLIFY COMMODITY TRUST

 

Table of Contents

 

    Page
Part I. FINANCIAL INFORMATION   1
Item 1. Interim Financial Statements   1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   34
Item 3. Quantitative and Qualitative Disclosures About Market Risk   56
Item 4. Controls and Procedures   56
     
Part II. OTHER INFORMATION   57
Item 1. Legal Proceedings   57
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds   57
Item 3. Defaults Upon Senior Securities   58
Item 4. Mine Safety Disclosures   58
Item 5. Other Information   58
Item 6. Exhibits   58

 

i

 

 

Part I.

INTERIM FINANCIAL INFORMATION

 

Item 1. Interim Financial Statements.

 

Index to Interim Financial Statements

 

Documents   Page
Combined Statements of Assets and Liabilities at December 31, 2023 (Unaudited)   2
     
Combined Statements of Assets and Liabilities at June 30, 2023   3
     
Combined Schedules of Investments at December 31, 2023 (Unaudited)   4
     
Combined Schedules of Investments at June 30, 2023   5
     
Combined Statements of Operations (Unaudited) for the three months ended December 31, 2023   6
     
Combined Statements of Operations (Unaudited) for the three months ended December 31, 2022   7
     
Combined Statements of Operations (Unaudited) for the six months ended December 31, 2023   8
     
Combined Statements of Operations (Unaudited) for the six months ended December 31, 2022   9
     
Combined Statements of Changes in Net Assets (Unaudited) for the three months ended December 31, 2023   10
     
Combined Statements of Changes in Net Assets (Unaudited) for the three months ended December 31, 2022   11
     
Combined Statements of Changes in Net Assets (Unaudited) for the six months ended December 31, 2023   12
     
Combined Statements of Changes in Net Assets (Unaudited) for the six months ended December 31, 2022   13
     
Combined Statements of Cash Flows (Unaudited) for the six months ended December 31, 2023   14
     
Combined Statements of Cash Flows (Unaudited) for the six months ended December 31, 2022   15
     
Notes to Interim Combined Financial Statements   16

 

1

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Assets and Liabilities

December 31, 2023 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
Assets            
Investment in securities, at fair value (Cost $11,704,549 and $596,829, respectively)  $11,704,549   $596,829   $12,301,378 
Segregated cash held by broker   26,325,972    1,500,719    27,826,691 
Receivable on open futures contracts   23,286,315    -    23,286,315 
Interest receivable   67,337    2,687    70,024 
Total assets   61,384,173    2,100,235    63,484,408 
Liabilities               
Payable on open futures contracts   -    83,410    83,410 
Other accrued expenses   85,462    3,514    88,976 
Due to Sponsor   173,374    6,104    179,478 
Total liabilities   258,836    93,028    351,864 
                
Net Assets  $61,125,337   $2,007,207   $63,132,544 
                
Shares outstanding (unlimited authorized)   5,250,040    125,100      
Net asset value per share  $11.64   $16.04      
Market value per share  $11.56   $16.15      

 

See accompanying notes to unaudited interim combined financial statements.

 

2

 

 

AMPLIFY COMMODITY TRUST 

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Assets and Liabilities

June 30, 2023

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
Assets            
Investment in securities, at fair value (cost $39,591,860 and $475,048, respectively)  $39,591,860   $475,048   $40,066,908 
Segregated cash held by broker   35,323,736    2,879,954    38,203,690 
Receivable on open futures contracts   -    825,287    825,287 
Interest receivable   145,794    2,001    147,795 
Total assets   75,061,390    4,182,290    79,243,680 
Liabilities               
Due to Sponsor   156,055    8,776    164,831 
Payable on open futures contracts   13,669,745    -    13,669,745 
Other accrued expenses   41,691    4,762    46,453 
Total liabilities   13,867,491    13,538    13,881,029 
                
Net Assets  $61,193,899   $4,168,752    65,362,651 
                
Shares outstanding (unlimited authorized)   11,075,040    200,100      
Net asset value per share  $5.53   $20.83      
Market value per share  $5.55   $20.88      

 

See accompanying notes to combined financial statements.

 

3

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Schedules of Investments

December 31, 2023 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively            
First American US Treasury Obligations Fund, Class X, 5.28% (a) (11,704,549 and 596,829 shares, respectively)  $11,704,549   $596,829   $12,301,378 
TOTAL MONEY MARKET FUNDS (Cost $11,704,549 and $596,829, respectively)   11,704,549    596,829    12,301,378 
                
Total Investments (Cost $11,704,549 and $596,829, respectively) - 19.1% and 29.7%, respectively   11,704,549    596,829    12,301,378 
Other Assets in Excess of Liabilities - 80.9% and 70.3%, respectively (b)   49,420,788    1,410,378    50,831,166 
TOTAL NET ASSETS - 100.0% and 100%, respectively  $61,125,337   $2,007,207   $63,132,544 

 

(a)Annualized seven-day yield as of December 31, 2023.
(b)$26,325,972 and $1,500,719, respectively, of cash is pledged as collateral for futures contracts.

 

                ETF MANAGERS  
BREAKWAVE DRY BULK SHIPPING ETF
Futures Contracts		   Unrealized
Appreciation/		     Unrealized
Appreciation/		     GROUP
COMMODITY		  
December 31, 2023   (Depreciation)     (Depreciation)     TRUST I  
                   
Baltic Capesize Time Charter Expiring January 31, 2024
(Underlying Face Amount at Market Value - $14,275,800) (600 contracts)		   $ 8,318,050                     $ 8,318,050  
Baltic Capesize Time Charter Expiring February 29, 2024
(Underlying Face Amount at Market Value - $8,862,600) (600 contracts)		     2,904,850               2,904,850  
Baltic Capesize Time Charter Expiring March 28, 2024
(Underlying Face Amount at Market Value - $9,462,600) (600 contracts)		     3,504,850               3,504,850  
Baltic Exchange Panamax T/C Average Shipping Route Index Expiring January 31, 2024
(Underlying Face Amount at Market Value - $7,868,840) (500 contracts)		     2,561,125               2,561,125  
Baltic Exchange Panamax T/C Average Shipping Route Index Expiring February 29, 2024
(Underlying Face Amount at Market Value - $7,378,500) (500 contracts)		     2,071,625               2,071,625  
Baltic Exchange Panamax T/C Average Shipping Route Index Expiring March 28, 2024
(Underlying Face Amount at Market Value - $7,812,500) (500 contracts)		     2,505,625               2,505,625  
Baltic Exchange Supramax T/C Average Shipping Route Expiring January 31, 2024
(Underlying Face Amount at Market Value - $1,890,460) (130 contracts)		     499,960               499,960  
Baltic Exchange Supramax T/C Average Shipping Route Expiring February 29, 2024
(Underlying Face Amount at Market Value - $1,791,790) (130 contracts)		     401,290               401,290  
Baltic Exchange Supramax T/C Average Shipping Route Expiring March 28, 2024
(Underlying Face Amount at Market Value - $1,909,440) (130 contracts)		     518,940               518,940  
    $ 23,286,315             $ 23,286,315  

 

        ETF MANAGERS 
BREAKWAVE TANKER SHIPPING ETF
Futures Contracts		  Unrealized
Appreciation/		   Unrealized
Appreciation/		   GROUP
COMMODITY		 
December 31, 2023  (Depreciation)   (Depreciation)   TRUST I 
             
Baltic Freight Route Middle East Gulf to China Expiring January 31, 2024
(Underlying Face Amount at Market Value - $622,300) (49 contracts)		  $-   $(27,700)  $(27,700)
Baltic Freight Route Middle East Gulf to China Expiring February 29, 2024
(Underlying Face Amount at Market Value - $618,723) (49 contracts)		              -    (31,277)   (31,277)
Baltic Freight Route Middle East Gulf to China Expiring March 28, 2024
(Underlying Face Amount at Market Value - $616,567) (49 contracts)		   -    (33,433)   (33,433)
Baltic Freight Route West Africa to UK Continent Expiring January 31, 2024
(Underlying Face Amount at Market Value - $97,000) (5 contracts)		   -    5,000    5,000 
Baltic Freight Route West Africa to UK Continent Expiring February 29, 2024
(Underlying Face Amount at Market Value - $180,000) (10 contracts)		   -    4,000    4,000 
   $-   $(83,410)  $(83,410)

 

See accompanying notes to unaudited interim combined financial statements.

4

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Schedule of Investments

June 30, 2023

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
MONEY MARKET FUNDS - 64.7% and 11.4%, respectively            
First American US Treasury Obligations Fund, Class X, 5.04% (a)  $39,591,860   $475,048   $40,066,908 
TOTAL MONEY MARKET FUNDS (Cost $39,591,860 and $475,048, respectively)   39,591,860    475,048    40,066,908 
                
Total Investments (Cost $39,591,860 and $475,048, respectively) - 64.7% and 11.4%, respectively   39,591,860    475,048    40,066,908 
Other Assets in Excess of Liabilities - 35.3% and 88.6%, respectively (b)   21,602,039    3,693,704    25,295,743 
TOTAL NET ASSETS - 100.0% and 100.0%, respectively  $61,193,899   $4,168,752   $65,362,651 

 

(a)Annualized seven-day yield as of June 30, 2023.

(b)$35,323,736 and $2,879,954, respectively, of cash is pledged as collateral for futures contracts.

 

        ETF MANAGERS 
BREAKWAVE DRY BULK SHIPPING ETF
Futures Contracts		  Unrealized
Appreciation/		   Unrealized
Appreciation/		   GROUP
COMMODITY		 
June 30, 2023  (Depreciation)   (Depreciation)   TRUST I 
             
Baltic Capesize Time Charter Expiring July 28, 2023
(Underlying Face Amount at Market Value - $9,552,340) (620 contracts)		  $(2,288,410)  $       -   $(2,288,410)
Baltic Capesize Time Charter Expiring August 25, 2023
(Underlying Face Amount at Market Value - $10,172,340) (620 contracts)		   (1,668,410)   -    (1,668,410)
Baltic Capesize Time Charter Expiring September 29, 2023
(Underlying Face Amount at Market Value - $10,781,180) (620 contracts)		   (1,059,570)   -    (1,059,570)
Baltic Exchange Panamax T/C Average Shipping Route Index Expiring July 28, 2023
(Underlying Face Amount at Market Value - $7,034,400) (810 contracts)		   (3,404,475)   -    (3,404,475)
Baltic Exchange Panamax T/C Average Shipping Route Index Expiring August 25, 2023
(Underlying Face Amount at Market Value - $8,208,800) (810 contracts)		   (2,248,325)   -    (2,248,325)
Baltic Exchange Panamax T/C Average Shipping Route Index Expiring September 29, 2023
(Underlying Face Amount at Market Value - $9,104,800) (810 contracts)		   (1,356,325)   -    (1,356,325)
Baltic Exchange Supramax T/C Average Shipping Route Expiring July 28, 2023
(Underlying Face Amount at Market Value - $1,752,750) (190 contracts)		   (732,250)   -    (732,250)
Baltic Exchange Supramax T/C Average Shipping Route Expiring August 25, 2023
(Underlying Face Amount at Market Value - $1,938,000) (190 contracts)		   (547,000)   -    (547,000)
Baltic Exchange Supramax T/C Average Shipping Route Expiring September 29, 2023
(Underlying Face Amount at Market Value - $2,120,000) (190 contracts)		   (364,980)   -    (364,980)
   $(13,669,745)  $-   $(13,669,745)

 

        ETF MANAGERS 
BREAKWAVE TANKER SHIPPING ETF
Futures Contracts		  Unrealized
Appreciation/		   Unrealized
Appreciation/		   GROUP
COMMODITY		 
June 30, 2023  (Depreciation)   (Depreciation)   TRUST I 
             
Baltic Freight Route Middle East Gulf to China Expiring July 28, 2023
(Underlying Face Amount at Market Value - $1,296,000) (90 contracts)		  $            -   $300,377   $    300,377 
Baltic Freight Route Middle East Gulf to China Expiring August 25, 2023
(Underlying Face Amount at Market Value - $1,229,400) (90 contracts)		   -    233,777    233,777 
Baltic Freight Route Middle East Gulf to China Expiring September 29, 2023
(Underlying Face Amount at Market Value - $1,234,800) (90 contracts)		   -    239,177    239,177 
Baltic Freight Route West Africa to UK Continent Expiring July 28, 2023
(Underlying Face Amount at Market Value - $95,450) (5 contracts)		   -    19,567    19,567 
Baltic Freight Route West Africa to UK Continent Expiring August 25, 2023
(Underlying Face Amount at Market Value - $179,400) (10 contracts)		   -    19,121    19,121 
Baltic Freight Route West Africa to UK Continent Expiring September 29, 2023
(Underlying Face Amount at Market Value - $89,150) (5 contracts)		   -    13,268    13,268 
   $-   $825,287   $825,287 

 

See accompanying notes to combined financial statements.

5

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Operations

Three Months Ended December 31, 2023 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Investment Income            
Interest  $457,674   $7,475   $465,149 
                
Expenses               
Sponsor fee   31,396    12,559    43,955 
CTA fee   215,262    7,347    222,609 
Audit fees   21,537    11,440    32,977 
Tax preparation fees   55,257    629    55,886 
Admin/accounting/custodian/transfer agent fees   16,576    15,020    31,596 
Legal fees   11,304    11,304    22,608 
Chief Compliance Officer fees   6,280    6,280    12,560 
Principal Financial Officer fees   6,280    6,280    12,560 
Regulatory reporting fees   6,280    6,280    12,560 
Brokerage commissions   164,318    8,823    173,141 
Distribution fees   3,944    3,927    7,871 
NJ Filing fees   62,582    -    62,582 
Share Registration fees   7,184    979    8,163 
Insurance expense   3,767    3,767    7,534 
Listing and calculation agent fees   2,312    1,696    4,008 
Marketing expenses   2,288    3,767    6,055 
Other expenses   629    132    761 
Website Support and Marketing Materials   6,535    1,256    7,791 
Printing and Postage   2,392    2,513    4,905 
Wholesale support fees   24,094    4,528    28,622 
Total Expenses   650,217    108,527    758,744 
Less: Waiver of CTA fee   -    (7,347)   (7,347)
Less: Expenses absorbed by Sponsor   -    (74,622)   (74,622)
Net Expenses   650,217    26,558    676,775 
Net Investment Income (Loss)   (192,543)   (19,083)   (211,626)
                
Net Realized and Unrealized Gain (Loss) on Investment Activity               
                
Net Realized Gain (Loss) on               
Investments and futures contracts   27,728,859    96,553    27,825,412 
                
Change in Unrealized Gain (Loss) on               
Investments and futures contracts   17,188,035    (12,008)   17,176,027 
Net realized and unrealized gain (loss)   44,916,894    84,545    45,001,439 
Net income (loss)  $44,724,351   $65,462   $44,789,813 

 

See accompanying notes to unaudited interim combined financial statements.

 

6

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Operations

Three Months Ended December 31, 2022 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Investment Income            
Interest  $117,420   $           -   $117,420 
                
Expenses               
Sponsor fee   31,508    -    31,508 
CTA fee   134,383    -    134,383 
Audit fees   21,677    -    21,677 
Tax preparation fees   55,453    -    55,453 
Admin/accounting/custodian/transfer agent fees   16,637    -    16,637 
Legal fees   11,343    -    11,343 
Chief Compliance Officer fees   6,301    -    6,301 
Principal Financial Officer fees   6,301    -    6,301 
Regulatory reporting fees   6,301    -    6,301 
Brokerage commissions   142,544    -    142,544 
Distribution fees   3,959    -    3,959 
NJ Filing fees   26,163    -    26,163 
Insurance expense   3,781    -    3,781 
Listing and calculation agent fees   2,320    -    2,320 
Marketing expenses   9,075    -    9,075 
Other expenses   3,781    -    3,781 
Website support and marketing materials   2,647    -    2,647 
Printing and Postage   4,033    -    4,033 
Wholesale support fees   17,422    -    17,422 
Interest expense   -    -    - 
Total Expenses   505,629    -    505,629 
Less: Waiver of CTA fee   (38,707)   -    (38,707)
Less: Expenses absorbed by Sponsor   -    -    - 
Net Expenses   466,922    -    466,922 
Net Investment Income (Loss)   (349,502)   -    (349,502)
                
Net Realized and Unrealized Gain (Loss) on Investment Activity               
                
Net Realized Gain (Loss) on               
Investments and futures contracts   (2,935,993)   -    (2,935,993)
                
Change in Unrealized Gain (Loss) on               
Investments and futures contracts   7,140,215    -    7,140,215 
Net realized and unrealized gain (loss)   4,204,222    -    4,204,222 
Net income (loss)  $3,854,720   $-   $3,854,720 

 

See accompanying notes to unaudited interim combined financial statements.

 

7

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Operations

Six Months Ended December 31, 2023 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Investment Income            
Interest  $995,384   $13,881   $
1,009,265
 
                
Expenses               
Sponsor fee   62,826    25,133    87,959 
CTA fee   453,548    20,130    473,678 
Audit fees   41,374    28,815    70,189 
Tax preparation fees   110,684    8,212    118,896 
Admin/accounting/custodian/transfer agent fees   33,173    30,056    63,229 
Legal fees   22,620    22,620    45,240 
Chief Compliance Officer fees   12,568    12,568    25,136 
Principal Financial Officer fees   12,568    12,568    25,136 
Regulatory reporting fees   12,568    12,568    25,136 
Brokerage commissions   356,616    24,327    380,943 
Distribution fees   7,893    7,874    15,767 
NJ Filing fees   125,711    10,159    135,870 
Share Registration fees   7,184    979    8,163 
Insurance expense   7,542    7,538    15,080 
Listing and calculation agent fees   4,631    3,394    8,025 
Marketing expenses   10,478    7,538    18,016 
Other expenses   1,691    2,029    3,720 
Website support and marketing materials   13,070    2,512    15,582 
Printing and Postage   5,031    5,026    10,057 
Wholesale support fees   50,112    9,622    59,734 
Total Expenses   1,351,888    253,668    1,605,556 
Less: Waiver of CTA fee   -    (20,130)   (20,130)
Less: Expenses absorbed by Sponsor   -    (160,731)   (160,731)
Net Expenses   1,351,888    72,807    1,424,695 
Net Investment Income (Loss)   (356,504)   (58,926)   (415,430)
                
Net Realized and Unrealized Gain (Loss) on Investment Activity               
                
Net Realized Gain (Loss) on               
Investments and futures contracts   9,477,594    130,178    9,607,772 
                
Change in Unrealized Gain (Loss) on               
Investments and futures contracts   36,924,759    (908,697)   36,016,062 
Net realized and unrealized gain (loss)   46,402,353    (778,519)   45,623,834 
Net income (loss)  $46,045,849   $(837,445)  $45,208,404 

 

See accompanying notes to unaudited interim combined financial statements.

 

8

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Operations

Six Months Ended December 31, 2022 (Unaudited)

  

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Investment Income            
Interest  $204,840   $         -   $204,840 
                
Expenses               
Sponsor fee   63,016    -    63,016 
CTA fee   272,120    -    272,120 
Audit fees   43,354    -    43,354 
Tax preparation fees   107,179    -    107,179 
Admin/accounting/custodian/transfer agent fees   33,274    -    33,274 
Legal fees   22,686    -    22,686 
Chief Compliance Officer fees   12,602    -    12,602 
Principal Financial Officer fees   12,602    -    12,602 
Regulatory reporting fees   12,602    -    12,602 
Brokerage commissions   252,166    -    252,166 
Distribution fees   7,918    -    7,918 
NJ Filing fees   50,110    -    50,110 
Insurance expense   7,562    -    7,562 
Listing and calculation agent fees   4,639    -    4,639 
Marketing expenses   18,149    -    18,149 
Other expenses   7,562    -    7,562 
Website support and marketing materials   5,294    -    5,294 
Printing and Postage   7,385    -    7,385 
Wholesale support fees   35,122    -    35,122 
Interest expense   1,561    -    1,561 
Total Expenses   976,903    -    976,903 
Less: Waiver of CTA fee   (66,332)   -    (66,332)
Less: Expenses absorbed by Sponsor   -    -    - 
Net Expenses   910,571    -    910,571 
Net Investment Income (Loss)   (705,731)   -    (705,731)
                
Net Realized and Unrealized Gain (Loss) on Investment Activity               
                
Net Realized Gain (Loss) on               
Investments and futures contracts   (31,400,798)   -    (31,400,798)
                
Change in Unrealized Gain (Loss) on               
Investments and futures contracts   13,609,790    -    13,609,790 
Net realized and unrealized gain (loss)   (17,791,008)   -    (17,791,008)
Net income (loss)  $(18,496,739)  $-   $(18,496,739)

 

See accompanying notes to unaudited interim combined financial statements.

 

9

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Changes in Net Assets

Three Months Ended December 31, 2023 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Net Assets at Beginning of Period  $66,419,210   $1,549,635   $67,968,845 
                
Increase (decrease) in Net Assets from share transactions               
Addition of 25,000 and 25,000 shares, respectively   145,145    392,110    537,255 
Redemption of 6,850,000 and -0- shares, respectively   (50,163,369)   -    (50,163,369)
Net Increase (decrease) in Net Assets from share transactions   (50,018,224)   392,110    (49,626,114)
                
Increase (decrease) in Net Assets from operations               
Net investment income (loss)   (192,543)   (19,083)   (211,626)
Net realized gain (loss)   27,728,859    96,553    27,825,412 
Change in net unrealized gain (loss)   17,188,035    (12,008)   17,176,027 
                
Net Increase (decrease) in Net Assets from operations   44,724,351    65,462    44,789,813 
                
Net Assets at End of Period  $61,125,337   $2,007,207   $63,132,544 

 

See accompanying notes to unaudited interim combined financial statements.

 

10

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Changes in Net Assets

Three Months Ended December 31, 2022 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Net Assets at Beginning of Period  $35,203,185   $
         -
   $35,203,185 
                
Increase (decrease) in Net Assets from share transactions               
Addition of 1,475,000 shares   11,574,875    
-
    11,574,875 
Redemption of 1,575,000 shares   (13,796,285)   
-
    (13,796,285)
Net Increase (decrease) in Net Assets from share transactions   (2,221,410)   
-
    (2,221,410)
                
Increase (decrease) in Net Assets from operations               
Net investment income (loss)   (349,502)   
-
    (349,502)
Net realized gain (loss)   (2,935,993)   
-
    (2,935,993)
Change in net unrealized gain (loss)   7,140,215    
-
    7,140,215 
                
Net Increase (decrease) in Net Assets from operations   3,854,720    
-
    3,854,720 
                
Net Assets at End of Period  $36,836,495   $
-
   $36,836,495 

 

See accompanying notes to unaudited interim combined financial statements.

 

11

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Changes in Net Assets

Six Months Ended December 31, 2023 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Net Assets at Beginning of Period  $61,193,899   $4,168,752   $65,362,651 
                
Increase (decrease) in Net Assets from share transactions               
Addition of 2,825,000 and 25,000 shares, respectively   13,708,463    392,110    14,100,573 
Redemption of 8,650,000 and 100,000 shares, respectively   (59,822,874)   (1,716,210)   (61,539,084)
Net increase (decrease) in Net Assets from share transactions   (46,114,411)   (1,324,100)   (47,438,511)
                
Increase (decrease) in Net Assets from operations               
Net investment gain (loss)   (356,504)   (58,926)   (415,430)
Net realized gain   9,477,594    130,178    9,607,772 
Change in net unrealized gain (loss)   36,924,759    (908,697)   36,016,062 
                
Net Increase (Decrease) in Net Assets from operations   46,045,849    (837,445)   45,208,404 
                
Net Assets at End of Period  $61,125,337   $2,007,207   $63,132,544 

 

See accompanying notes to unaudited interim combined financial statements.

 

12

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Changes in Net Assets

Six Months Ended December 31, 2022 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Net Assets at Beginning of Period  $46,487,168   $          -   $46,487,168 
                
Increase (decrease) in Net Assets from share transactions               
Addition of 4,025,000 shares   35,223,901    -    35,223,901 
Redemption of 2,825,000 shares   (26,377,835)   -    (26,377,835)
Net increase (decrease) in Net Assets from share transactions   8,846,066    -    8,846,066 
                
Increase (decrease) in Net Assets from operations               
Net investment gain (loss)   (705,731)   -    (705,731)
Net realized loss   (31,400,798)   -    (31,400,798)
Change in net unrealized gain (loss)   13,609,790    -    13,609,790 
                
Net Increase (Decrease) in Net Assets from operations   (18,496,739)   -    (18,496,739)
                
Net Assets at End of Period  $36,836,495   $-   $36,836,495 

 

See accompanying notes to unaudited interim combined financial statements.

 

13

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Cash Flows

Six Months Ended December 31, 2023 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Cash flows provided by (used in) operating activities            
Net income (loss)  $46,045,849   $(837,445)  $45,208,404 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:               
Net realized loss (gain) on investments   (9,477,594)   (130,178)   (9,607,772)
Change in net unrealized loss (gain) on investments   (36,924,759)   908,697    (36,016,062)
Change in operating assets and liabilities:             - 
Sale (Purchase) of investments, net   74,289,664    (900,300)   73,389,364 
Decrease (Increase) in interest receivable   78,457    (686)   77,771 
Decrease (Increase) in receivable on open futures contracts   (23,286,315)   825,287    (22,461,028)
Increase (Decrease) in due to Sponsor   17,319    (2,672)   14,647 
Increase (Decrease) in payable on open futures contracts   (13,669,745)   83,410    (13,586,335)
Increase (decrease) in other accrued expenses   43,771    (1,248)   42,523 
Net cash provided by (used in) operating activities   37,116,647    (55,135)   37,061,512 
Cash flows from financing activities             - 
Proceeds from sale of shares   13,708,463    392,110    14,100,573 
Paid on redemption of shares   (59,822,874)   (1,716,210)   (61,539,084)
Net cash provided by financing activities   (46,114,411)   (1,324,100)   (47,438,511)
Net increase (decrease) in cash and restricted cash   (8,997,764)   (1,379,235)   (10,376,999)
Cash and restricted cash, beginning of period   35,323,736    2,879,954    38,203,690 
Cash and restricted cash, end of period  $26,325,972   $1,500,719   $27,826,691 
                
The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities that sum to the total of such amounts shown on the Statement of Cash Flows. 
                
Cash  $-   $-   $- 
Segregated cash held by broker   26,325,972    1,500,719    27,826,691 
Total cash and restricted cash as shown on the statement of cash flows  $26,325,972   $1,500,719   $27,826,691 

 

See accompanying notes to unaudited interim combined financial statements.

 

14

 

 

AMPLIFY COMMODITY TRUST

(FORMERLY, ETF MANAGERS GROUP COMMODITY TRUST I)

Combined Statements of Cash Flows

Six Months Ended December 31, 2022 (Unaudited)

 

   BREAKWAVE
DRY BULK		   BREAKWAVE
TANKER		     
   SHIPPING
ETF		   SHIPPING
ETF		   COMBINED 
             
Cash flows provided by (used in) operating activities            
Net income (loss)  $(18,496,739)  $          -   $(18,496,739)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:               
Net realized loss (gain) on investments   31,400,798    -    31,400,798 
Change in net unrealized loss (gain) on investments   (13,609,790)   -    (13,609,790)
Change in operating assets and liabilities:               
Sale (Purchase) of investments, net   (5,645,080)   -    (5,645,080)
Decrease in receivable for fund shares sold   1,684,835    -    1,684,835 
Increase in receivable on open futures contracts   (4,344,615)   -    (4,344,615)
Increase in interest receivable   (12,167)   -    (12,167)
Decrease in due to Sponsor   (240,932)   -    (240,932)
Decrease in payable on open futures contracts   (9,265,175)   -    (9,265,175)
Increase in other accrued expenses   42,790    -    42,790 
Net cash provided by (used in) operating activities   (18,486,075)   -    (18,486,075)
Cash flows from financing activities               
Proceeds from sale of shares   35,223,901    -    35,223,901 
Paid on redemption of shares   (26,377,835)   -    (26,377,835)
Net cash provided by financing activities   8,846,066    -    8,846,066 
Net increase (decrease) in cash and restricted cash   (9,640,009)   -    (9,640,009)
Cash and restricted cash, beginning of period   37,188,477    -    37,188,477 
Cash and restricted cash, end of period  $27,548,468   $-   $27,548,468 
                
The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities that sum to the total of such amounts shown on the Statement of Cash Flows. 
                
Cash  $-   $-   $- 
Segregated cash held by broker   27,548,468    -    27,548,468 
Total cash and restricted cash as shown on the statement of cash flows  $27,548,468   $-   $27,548,468 

 

See accompanying notes to unaudited interim combined financial statements.

 

15

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(1) Organization

 

Amplify Commodity Trust (formerly, ETF Managers Group Commodity Trust I) (the “Trust”) was organized as a Delaware statutory trust on July 23, 2014. Effective after the close of trading on February 14, 2024, ETF Managers Capital LLC, as the prior sponsor and commodity pool operator (the “Former Sponsor”) of the Trust, entered into an agreement (the “Transfer Agreement”) to resign as Sponsor to the Trust and transfer its role as the Trust’s sponsor to Amplify Investments LLC (“the Sponsor.”) Under the terms of the Transfer Agreement, the Former Sponsor no longer has any involvement in the operations, management or marketing of the Fund. In connection with this change of Sponsor, Trust changed its name from the ETF Managers Group Commodity Trust I to the Amplify Commodity Trust. The Trust is a series trust formed pursuant to the Delaware Statutory Trust Act and currently consists of two separate series. BREAKWAVE DRY BULK SHIPPING ETF (“BDRY”), is the first series of the Trust and is a commodity pool that continuously issues shares of beneficial interest that may be purchased and sold on the NYSE Arca. The second series of the Trust, BREAKWAVE TANKER SHIPPING ETF (“BWET”), each a “Fund” and together with BDRY, the “Funds”), is also a commodity pool that continuously issues shares of beneficial interest that may be purchased and sold on the NYSE Arca. The Funds are managed and controlled by ETF Managers Capital LLC (the “Sponsor”), a Delaware limited liability company. The Sponsor is registered with the Commodity Futures Trading Commission (“CFTC”) as a “commodity pool operator” (“CPO”) and is a member of the National Futures Trading Association (“NFA”). Breakwave Advisors, LLC (“Breakwave”) is registered as a “commodity trading advisor” (“CTA”) with the CFTC and serves as the Funds commodity trading advisor.

 

BDRY commenced investment operations on March 22, 2018. BDRY commenced trading on the NYSE Arca on March 22, 2018 and trades under the symbol “BDRY.”

 

BDRY’s investment objective is to provide investors with exposure to the daily change in the price of dry bulk freight futures, before expenses and liabilities of BDRY, by tracking the performance of a portfolio (the “BDRY Benchmark Portfolio”) consisting of a three-month strip of the nearest calendar quarter of futures contracts on specified indexes (each a “Reference Index”) that measure rates for shipping dry bulk freight (“Freight Futures”). Each Reference Index is published each United Kingdom business day by the London-based Baltic Exchange Ltd. (the “Baltic Exchange”) and measures the charter rate for shipping dry bulk freight in a specific size category of cargo ship – Capesize, Panamax or Supramax. The three Reference Indexes are as follows:

 

  ● Capesize: the Capesize 5TC Index;

 

  ● Panamax: the Panamax 4TC Index; and

 

  ● Supramax: the Supramax 6TC Index.

 

The value of the Capesize 5TC Index is disseminated at 11:00 a.m., London Time and the value of the Panamax 4TC Index and the Supramax 6TC Index each is disseminated at 1:00 p.m., London Time. The Reference Index information disseminated by the Baltic Exchange also includes the components and value of each component in each Reference Index. Such Reference Index information also is widely disseminated by Reuters and/or other major market data vendors.

 

BDRY seeks to achieve its investment objective by investing substantially all of its assets in the Freight Futures currently constituting the BDRY Benchmark Portfolio. The BDRY Benchmark Portfolio includes all existing positions to maturity and settles them in cash. During any given calendar quarter, the BDRY Benchmark Portfolio progressively increases its positions to the next calendar quarter three-month strip, thus maintaining constant exposure to the Freight Futures market as positions mature.

 

16

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(1) Organization - Continued 

 

The BDRY Benchmark Portfolio maintains long-only positions in Freight Futures. The BDRY Benchmark Portfolio includes a combination of Capesize, Panamax and Supramax Freight Futures. More specifically, the BDRY Benchmark Portfolio includes 50% exposure in Capesize Freight Futures contracts, 40% exposure in Panamax Freight Futures contracts and 10% exposure in Supramax Freight Futures contracts. The BDRY Benchmark Portfolio does not include and BDRY does not invest in swaps, non-cleared dry bulk freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses. BDRY may hold exchange-traded options on Freight Futures. The BDRY Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Freight Futures currently constituting the BDRY Benchmark Portfolio, as well as the daily holdings of BDRY are available on BDRY’s website at www.drybulketf.com.

 

When establishing positions in Freight Futures, BDRY will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or BDRY’s Futures Commissions Merchant (“FCM”), Marex Financial Ltd. (formerly ED&F Man Capital Markets, Inc.) On a daily basis, BDRY is obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Freight Futures positions. Any assets not required to be posted as margin with the FCM may be held at BDRY’s custodian or remain with the FCM in cash or cash equivalents, as discussed below.

 

BDRY was created to provide investors with a cost-effective and convenient way to gain exposure to daily changes in the price of Freight Futures. BDRY is intended to be used as a diversification opportunity as part of a complete portfolio, not a complete investment program.

 

The Fund will incur certain expenses in connection with its operations. The Fund will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment or as collateral for the Freight futures and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. These expenses and income from the cash and cash equivalent holdings may cause imperfect correlation between changes in the Fund’s net asset value (“NAV”) and changes in the Benchmark Portfolio, because the Benchmark Portfolio does not reflect expenses or income.

 

The Fund seeks to trade its positions prior to maturity; accordingly, natural market forces may cost the Fund while rebalancing. Each time the Fund seeks to reconstitute its positions, barring movement in the underlying securities, the futures and option prices may be higher or lower. Such differences in price, barring a movement in the price of the underlying security, will constitute “roll yield” and may inhibit the Fund’s ability to achieve its investment objective.

 

Several factors determine the total return from investing in a futures contract position. One factor that impacts the total return that will result from investing in near month futures contracts and “rolling” those contracts forward each month is the price relationship between the current near month contract and the next month contract.

 

The CTA will close existing positions when it determines it would be appropriate to do so and reinvest the proceeds in other positions. Positions may also be closed out to meet orders for redemption baskets.

 

BWET commenced investment operations on May 3, 2023. BWET commenced trading on NYSE Arca on May 3, 2023 and trades under the symbol “BWET.”

 

BWET’s investment objective is to provide investors with exposure to the daily change in the price of crude oil tanker freight futures, before expenses and liabilities of the Fund, by tracking the performance of a portfolio (the “BWET Benchmark Portfolio”) mainly consisting of the nearest calendar quarter of futures contracts on specified indexes (each a “Reference Index”) that measure prices for shipping crude oil (“Freight Futures”). Freight Futures reflect market expectations for the future cost of transporting crude oil. Each Reference Index is published each United Kingdom business day by the London-based Baltic Exchange Ltd. (the “Baltic Exchange”) and measures the charter rate for crude oil in a specific size category of cargo ship and for a specific route. The two Reference Indexes are as follows:

 

●The TD3C Index: Persian Gulf to China, 270,000mt cargo (Very Large Crude Carrier or VLCC tankers);

 

●The TD20 Index: West Africa to Europe, 130,000mt cargo (Suezmax Tankers)

 

17

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(1) Organization - Continued

 

The value of the TD3C Index and the TD20 Index is disseminated at 4:00 p.m. London Time by the Baltic Exchange. Such Reference Index information also is widely disseminated by Reuters, Bloomberg and/or other major market data vendors. 

 

The Fund seeks to achieve its investment objective by investing substantially all of its assets in the Freight Futures currently constituting the BWET Benchmark Portfolio. The BWET Benchmark Portfolio includes a combination of TD3C and TD20 Freight Futures. More specifically, the Benchmark Portfolio includes90% exposure in TD3C Freight Futures contracts and 10% exposure in TD20 Freight Futures contracts to maturity and settles them in cash. At any given time, the average maturity of the futures held by the Fund will be approximately 50 to 70 days.

 

The BWET Benchmark Portfolio does not include and BWET does not invest in swaps, non-cleared freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses. BWET may hold exchange-traded options on Freight Futures. The BWET Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Freight Futures currently constituting the BWET Benchmark Portfolio, as well as the daily holdings of BWET are available on BWET’s website at www.tankeretf.com.

 

When establishing positions in Freight Futures, BWET will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or BWET’s FCM, Marex Financial Ltd. On a daily basis, BWET is obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Freight Futures positions. Any assets not required to be posted as margin with the FCM maybe held at BWET’s custodian or remain with the FCM in cash or cash equivalents, as discussed below.

 

BWET was created to provide investors with a cost-effective and convenient way to gain exposure to daily changes in the price of Freight Futures. BWET is intended to be used as a diversification opportunity as part of a complete portfolio, not a complete investment program.

 

The Fund will incur certain expenses in connection with its operations. The Fund will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment or as collateral for the Treasury Instruments and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. The Fund may also realize interest income from its holdings in U.S. Treasuries or other market rate instruments. These expenses and income from the cash and cash equivalent holdings may cause imperfect correlation between changes in the Fund’s net asset value (“NAV”) and changes in the Benchmark Portfolio, because the Benchmark Portfolio does not reflect expenses or income.

 

The Fund seeks to trade its positions prior to maturity; accordingly, natural market forces may cost the Fund while rebalancing. Each time the Fund seeks to reconstitute its positions, barring movement in the underlying securities, the futures and option prices may be higher or lower. Such differences in price, barring a movement in the price of the underlying security, will constitute “roll yield” and may inhibit the Fund’s ability to achieve its investment objective.

 

Several factors determine the total return from investing in a futures contract position. One factor that impacts the total return that will result from investing in near month futures contracts and “rolling” those contracts forward each month is the price relationship between the current near month contract and the next month contract.

 

The CTA will close existing positions when it determines it would be appropriate to do so and reinvest the proceeds in other positions. Positions may also be closed out to meet orders for redemption baskets.

 

(2) Summary of Significant Accounting Policies

 

(a) Basis of Accounting

 

The accompanying combined interim financial statements of the Funds have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Each Fund qualifies as an investment company for financial reporting purposes under Topic 946 of the Accounting Standard Codification of U.S. GAAP.

 

The accompanying combined interim financial statements are unaudited, but in the opinion of management, contain all adjustments (which include normal recurring adjustments) considered necessary to present fairly the interim financial statements. These interim financial statements should be read in conjunction with the Fund’s annual report on Form 10-K for the year ended June 30, 2023, BDRY’s prospectus dated March 24, 2023 (the “BDRY Prospectus,”), and BWET’s prospectus dated April 28, 2023 (the “BWET” Prospectus”). Interim period results are not necessarily indicative of results for a full-year period.

 

18

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(2) Summary of Significant Accounting Policies - Continued

 

(b) Use of Estimates

 

The preparation of the combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and accompanying notes. Actual results could differ from those estimates. There were no significant estimates used in the preparation of the combined financial statements/

 

(c) Cash

 

Cash, when shown in the Combined Statements of Assets and Liabilities, represents non-segregated cash with the custodian and does not include short-term investments.

 

(d) Cash Held by Broker

 

Breakwave is registered as a “commodity trading advisor” and acts as such for the Funds. The Funds’ arrangement with its FCM requires the Funds to meet their variation margin requirement related to the price movements, both positive and negative, on futures contracts held by the Funds by keeping cash on deposit with the Commodity Broker (as defined below). These amounts are shown as segregated cash held by broker in the Combined Statements of Assets and Liabilities. Each Fund deposits cash or United States Treasury Obligations, as applicable, with the FCM subject to the CFTC regulations and various exchange and broker requirements. The combination of each Fund’s deposits with the FCM of cash and United States Treasury Obligations, as applicable, and the unrealized gain or loss on open futures contracts (variation margin) represents each Fund’s overall equity in its brokerage trading account. The Funds use their cash held by the FCM to satisfy individual variation margin requirements. The Funds earn interest on their cash deposited with the FCM and interest income is recorded on the accrual basis.

 

(e) Final Net Asset Value for Fiscal Period

 

The calculation time of the Fund’s final net asset value for creation and redemption of Fund shares for the three and six months ended December 31, 2023 and 2022 was at 4:00 p.m. Eastern Time on December 29, 2023 and December 30, 2022, respectively.

 

Although the Fund’s shares may continue to trade on secondary markets subsequent to the calculation of the final NAV, the 4:00 p.m. Eastern Time represented the final opportunity to transact in creation or redemption baskets for the three and six months ended December 31, 2023 and December 31, 2022.

 

Fair value per share is determined at the close of the NYSE Arca.

 

For financial reporting purposes, each Fund values its investment positions based upon the final closing price in their primary markets. Accordingly, the investment valuations in these interim combined financial statements differ from those used in the calculations of the Fund’s final creation/redemption NAVs at December 29, 2023 and December 30, 2022.

 

(f) Investment Valuation

 

Short-term investments, excluding U.S. Treasury Bills, are carried at amortized cost, which approximates fair value. U.S. Treasury Bills, when held by the Funds, are valued as determined by an independent pricing service based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions.

 

Futures and options contracts are valued at the last settled price on the applicable exchange on which that futures and/or options contract trades.

 

19

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(2) Summary of Significant Accounting Policies - Continued

 

(g) Financial Instruments and Fair Value

 

Each Fund discloses the fair value of its investments in accordance with the Financial Accounting Standards Board (“FASB”) fair value measurement and disclosure guidance which requires a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The disclosure requirements establish a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent to the Fund (observable inputs); and (2) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the disclosure requirements hierarchy are as follows:

 

Level I: Quoted prices (unadjusted) in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

 

Level II: Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level II inputs include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

 

Level III: Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.

 

In some instances, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

 

Fair value measurements also require additional disclosure when the volume and level of activity for the asset or liability have significantly decreased, as well as when circumstances indicate that a transaction is not orderly.

 

The following tables summarize BDRY’s valuation of investments at December 31, 2023 and at June 30, 2023 using the fair value hierarchy:

 

    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 11,704,549 a     $ 23,286,315 b     $ 34,990,864  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.

 

    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 39,591,860 a     $ (13,669,745) b     $ 25,922,115  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities.

 

Transfers between levels are recognized at the end of the reporting period. During the six months ended December 31, 2023 and the year ended June 30, 2023, BDRY recognized no transfers from Level 1, Level 2 or Level 3.

 

20

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(2) Summary of Significant Accounting Policies - Continued

 

(g) Financial Instruments and Fair Value - Continued

 

The following tables summarize BWET’s valuation of investments at December 31, 2023 and at June 30, 2023 using the fair value hierarchy:

 

    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 596,829 a     $ (83,410) b     $ 513,419  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities

 

    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 475,048 a     $ 825,287 b     $ 1,300,335  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.

 

Transfers between levels are recognized at the end of the reporting period. During the six months ended December 31, 2023 and the year ended June 30, 2023, BWET recognized no transfers from Level 1, Level 2 or Level 3.

 

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.

 

h) Investment Transactions and Related Income

 

Investment transactions are recorded on the trade date. All such transactions are recorded on the identified cost basis, and marked to market daily. Unrealized gain/loss on open futures contracts is reflected in Receivable/Payable on open futures contracts in the Combined Statements of Assets and Liabilities and the change in the unrealized gain/loss between periods is reflected in the Combined Statements of Operations. The Funds interest earned on short-term securities and on cash deposited with Marex Financial Ltd. is accrued daily and reflected as Interest Income, when applicable, in the Combined Statements of Operations.

 

(i) Federal Income Taxes

 

Each Fund is registered as a Delaware statutory trust and is treated as a partnership for U.S. federal income tax purposes. Accordingly, the Funds do not expect to incur U.S. federal income tax liability; rather, each beneficial owner is required to take into account their allocable share of the Funds’ income, gain, loss, deductions and other items for the Funds’ taxable year ending with or within the beneficial owner’s taxable year.

 

Management of the Funds has reviewed the open tax years and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns at December 31, 2023 and June 30, 2023. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. On an ongoing basis, management will monitor its tax positions taken to determine if adjustments to its conclusions are necessary based on factors including, but not limited to, further implementation of guidance expected from the FASB and on-going analysis of tax law, regulation, and interpretations thereof. The Funds’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.

 

21

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(3) Investments

 

(a) Short -Term Investments

 

The Funds may purchase U.S. Treasury Bills, agency securities, and other high-credit quality short-term fixed income or similar securities with original maturities of one year or less. A portion of these investments may be used as margin for the Funds’ trading in futures contracts.

 

(b) Accounting for Derivative Instruments

 

In seeking to achieve each Fund’s investment objective, the commodity trading advisor uses a mathematical approach to investing. Using this approach, the commodity trading advisor determines the type, quantity and mix of investment positions that it believes in combination should produce returns consistent with the Fund’s objective.

 

All open derivative positions at December 31, 2023 and at June 30, 2023, as applicable, are disclosed in the Combined Schedules of Investments and the notional value of these open positions relative to the shareholders’ capital of the Funds is generally representative of the notional value of open positions to shareholders’ capital throughout the reporting periods for the Funds. The volume associated with derivative positions varies on a daily basis as the Funds transact in derivative contracts in order to achieve the appropriate exposure, as expressed in notional value, in comparison to shareholders’ capital consistent with the applicable Fund’s investment objective.

 

Following is a description of the derivative instruments used by the Funds during the reporting period, including the primary underlying risk exposures.

 

(c) Futures Contracts

 

The Funds enter into futures contracts to gain exposure to changes in the value of the Benchmark Portfolios. A futures contract obligates the seller to deliver (and the purchaser to accept) the future cash settlement of a specified quantity and type of a freight futures contract at a specified time and place. The contractual obligations of a buyer or seller of a freight futures contract may generally be satisfied by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery.

 

Upon entering into a futures contract, the Funds are required to deposit and maintain as collateral at least such initial margin as required by the exchange on which the transaction is affected. The initial margin is segregated as Cash held by broker, as disclosed in the Combined Statements of Assets and Liabilities, and is restricted as to its use. Pursuant to the futures contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Such receipts or payments are known as variation margin and are recorded by the Funds as unrealized gains or losses. The Funds will realize a gain or loss upon closing a futures transaction.

 

Futures contracts involve, to varying degrees, elements of market risk (specifically freight futures price risk) and exposure to loss in excess of the amount of variation margin. The face or contract amounts reflect the extent of the total exposure the Funds have in the particular classes of instruments. Additional risks associated with the use of futures contracts include imperfect correlation between movements in the price of the futures contracts and the market value of the underlying securities and the possibility of an illiquid market for a futures contract. With futures contracts, there is minimal counterparty risk to the Funds since futures contracts are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees the futures contracts against default. 

 

BREAKWAVE DRY BULK SHIPPING ETF

Fair Value of Derivative Instruments, as of December 31, 2023

 

    Asset Derivatives   Liability Derivatives  
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Dry Bulk Index Rates Market Risk   Receivable on open futures contracts   $ 23,286,315 *     —      —  

 

* Represents cumulative appreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

22

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(3) Investments - Continued

 

(c) Futures Contracts - Continued

 

BREAKWAVE DRY BULK SHIPPING ETF

Fair Value of Derivative Instruments, as of June 30, 2023

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Dry Bulk Index Rates Market Risk         -       Payable on open futures contracts     $ 13,669,745 *

 

* Represents cumulative depreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

BREAKWAVE DRY BULK SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Three Months Ended December 31, 2023

 

Derivatives   Location of Gain (Loss) on Derivatives Realized
Gain on
Derivatives
Recognized in
Income		 Change in
Unrealized Gain
(Loss) on
Derivatives
Recognized in
Income
Dry Bulk Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts     $ 27,728,859     $ 17,188,035  

 

The futures contracts open at December 31, 2023 are indicative of the activity for the three months ended December 31, 2023.

 

BREAKWAVE DRY BULK SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Three Months Ended December 31, 2022

 

Derivatives   Location of Gain (Loss) on Derivatives Realized
Loss on
Derivatives
Recognized in
Income		 Change in
Unrealized Gain
(Loss) on
Derivatives
Recognized in
Income
Dry Bulk Index Rates Market Risk   Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts     $ (2,935,993 )   $ 7,140,215  

 

The futures contracts open at December 31, 2022 are indicative of the activity for the three months ended December 31, 2022.

 

23

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(3) Investments - Continued

 

(c) Futures Contracts - Continued

 

BREAKWAVE DRY BULK SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Six Months Ended December 31, 2023

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Dry Bulk Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 9,477,594   $ 36,924,759  

 

The futures contracts open at December 31, 2023 are indicative of the activity for the six months ended December 31, 2023.

 

BREAKWAVE DRY BULK SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Six Months Ended December 31, 2022

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Loss on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Dry Bulk Index Rates Market Risk   Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ (31,400,798 )   $ 13,609,790  

 

The futures contracts open at December 31, 2022 are indicative of the activity for the six months ended December 31, 2022.

 

BREAKWAVE TANKER SHIPPING ETF

Fair Value of Derivative Instruments, as of December 31, 2023

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Crude Oil Tanker Index Rates Market Risk         -       Payable on open futures contracts     $ 83,410 *

 

* Represents cumulative depreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

24

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(3) Investments - Continued

 

(c) Futures Contracts - Continued

 

BREAKWAVE TANKER SHIPPING ETF

Fair Value of Derivative Instruments, as of June 30, 2023

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Crude Oil Tanker Index Rates Market Risk  

Receivable on open futures contracts

   $ 825,287                 - 

 

* Represents cumulative appreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

BREAKWAVE TANKER SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Three Months Ended December 31, 2023

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Crude Oil Tanker Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 96,553   $ (12,008 )

 

The futures contracts open at December 31, 2023 are indicative of the activity for the three months ended December 31, 2023.

 

BREAKWAVE TANKER SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Six Months Ended December 31, 2023

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Crude Oil Tanker Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 130,178   $ (908,697 )

 

The futures contracts open at December 31, 2023 are indicative of the activity for the six months ended December 31, 2023.

 

25

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(4) Agreements

 

(a) Management Fee

 

Each Fund pays the Sponsor a sponsor fee (the “Sponsor Fee”) in consideration of the Sponsor’s advisory services to the Funds. Additionally, each Fund pays the commodity trading advisor a license and service fee (the “CTA fee”).

 

BDRY pays the Sponsor an annual Sponsor Fee, monthly in arrears, in an amount calculated as the greater of 0.15% of its average daily net assets, or $125,000. BDRY also pays an annual fee to Breakwave, monthly in arrears, in an amount equal to 1.45% of BDRY’s average daily net assets. Breakwave has agreed to waive its CTA fee to the extent necessary, and the Sponsor has voluntarily agreed to correspondingly assume the remaining expenses of BDRY such that Fund expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, if any, of the value of BDRY’s average daily net assets through March 31, 2025 (the “BDRY Expense Cap,”). The assumption of expenses by the Sponsor and waiver of BDRY’s CTA fee are contractual on the part of the Sponsor and Breakwave, respectively.

 

The waiver of BDRY’s CTA fees, pursuant to the undertaking, amounted to $-0- and $38,707, for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $66,332 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. Effective September 1, 2022 Breakwave may, during the term of the waiver agreement, recoup any fees waived pursuant to the contract; however, the Fund will only make repayments to Breakwave if such repayment does not cause the Fund’s expense ratio after the repayment is taken into account, to exceed either (i) the expense cap in place at the time such amounts were waived, or (ii) the Fund’s current expense cap. Such recoupment is limited to three years from the date the amount is initially waived. At September 30, 2023, BDRY is not subject to potential future repayments to Breakwave.

 

BWET pays the Sponsor an annual Sponsor Fee, monthly in arrears, in an amount calculated as the greater of 0.30% of its average daily net assets, or $50,000. BWET also pays an annual CTA license and service fee to Breakwave, monthly in arrears, in an amount equal to 1.45% of BDRY’s average daily net assets. Breakwave has agreed to waive its CTA fee to the extent necessary, and the Sponsor has voluntarily agreed to correspondingly assume the remaining expenses of BWET such that Fund expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, if any, of the value of BWET’s average daily net assets through March 31, 2025 (the “BWET Expense Cap”). The assumption of expenses by the Sponsor and waiver of BWET’s CTA fee are contractual on the part of the Sponsor and Breakwave, respectively.

 

The waiver of BWET’s CTA fees, pursuant to the undertaking, amounted to $7,347 for the three months ended December 31, 2023 and $20,130 for the six months ended December 31, 2023 as disclosed in the Combined Statements of Operations. Breakwave may, during the term of the waiver agreement, recoup any fees waived pursuant to the contract; however, the Fund will only make repayments to Breakwave if such repayment does not cause the Fund’s expense ratio after the repayment is taken into account, to exceed either (i) the expense cap in place at the time such amounts were waived, or (ii) the Fund’s current expense cap. Such recoupment is limited to three years from the date the amount is initially waived. At December 31, 2023, BWET is subject to potential future repayments of $27,704 to Breakwave. The potential future repayments expire during the years ending June 30, 2026 and 2027 in the amounts of $7,574 and $20,130, respectively.

 

The Funds currently accrue their daily expenses up to the Expense Cap, or if less, at accrual estimates established by the Sponsor. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor has assumed, and is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Funds in excess of the Fund’s respective Expense Cap, which in the case of BDRY, aggregated $-0- and $-0- for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $-0- for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations.

 

In the case of BWET, expenses absorbed by the Sponsor aggregated $74,622 and $160,731, respectively for the three and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations.

 

(b) The Administrator, Custodian, Fund Accountant and Transfer Agent

 

Each Fund has appointed U.S. Bank, a national banking association, with its principal office in Milwaukee, Wisconsin, as the custodian (the “Custodian”). Its affiliate, U.S. Bancorp Fund Services, is the Fund accountant (“the Fund accountant”) of the Funds, transfer agent (the “Transfer Agent”) for Fund shares and administrator for the Funds (the “Administrator”). It performs certain administrative and accounting services for the Funds and prepares certain SEC, NFA and CFTC reports on behalf of the Funds. (U.S. Bank and U.S. Bancorp Fund Services are referred to collectively hereinafter as “U.S. Bank”).

 

26

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(4) Agreements - Continued

 

(b) The Administrator, Custodian, Fund Accountant and Transfer Agent - Continued

 

Each Fund has agreed to pay U.S. Bank 0.05% of average assets under management (AUM), with a $45,000 minimum annual fee payable for its administrative, accounting and transfer agent services and 0.01% of AUM, with an annual minimum of $4,800 for custody services. BDRY paid U.S. Bank $16,576 and $16,637 for the three months ended December 31, 2023 and 2022, respectively, and $33,173 and $33,274 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET paid U.S. Bank $15,020 and $30,056 for the three and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations.

 

(c) The Distributor

 

Through August 13, 2023, each Fund paid ETFMG Financial LLC (the “former Distributor”), an affiliate of the Sponsor, an annual fee for statutory and wholesaling distribution services and related administrative services equal to the greater of $15,000 or 0.02% of the Fund’s average daily net assets, payable monthly. Pursuant to the respective Marketing Agent Agreements between the Sponsor, each Fund and the former Distributor, the former Distributor assisted the Sponsor and the applicable Fund with certain functions and duties relating to distribution and marketing services to the applicable Fund, including reviewing and approving marketing materials and certain regulatory compliance matters. The Distributor also assisted with the processing of creation and redemption orders.

 

Effective August 14, 2023, the Sponsor entered into a Marketing Agent Agreement (the “Marketing Agreement”) on behalf of the Trust and the Funds with Foreside Fund Services, LLC (“Foreside”), pursuant to which Foreside provides certain marketing services to the Funds. Each Fund pays an annual fee for such distribution services and related administrative services, with a minimum of approximately $7,150 payable annually. Pursuant to the Marketing Agent Agreement between the Sponsor, the Funds and Foreside, Foreside assists the Sponsor and the Funds with certain functions and duties relating to distribution and marketing services to the Funds, including reviewing and approving marketing materials and certain regulatory compliance matters. Foreside also assists with the processing of creation and redemption orders. Foreside’s principal business office is located in Portland, ME.

 

BDRY incurred $3,944 and $3,959 in distribution and related administrative services for the three months ended December 31, 2023 and 2022, respectively, and $7,893 and $7,918 for the six months ended December 31. 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET incurred $3,927 and $7,874 in distribution and related administrative services for the three months and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations.

 

BDRY pays the Sponsor an annual fee for wholesale support services of $25,000 plus 0.12% of BDRY’s average daily net assets, payable monthly. BWET pays the Sponsor an annual fee for wholesale support services of $15,000 plus 0.15% of BWET’s average daily net assets, payable monthly.

 

BDRY incurred $24,094 and $17,422 in wholesale support fees for the three months ended December 31, 2023 and 2022, respectively, and $50,112 and $35,122 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET incurred $4,528 and $9,622 in wholesale support fees for the three and six months ended December 31, respectively, as disclosed in the Combined Statements of Operations.

 

(d) The Commodity Broker

 

Marex Financial Ltd., registered in England, serves as each Fund’s clearing broker (the “Commodity Broker”). In its capacity as clearing broker, the Commodity Broker executes and clears the Fund’s futures transactions and performs certain administrative services for the Funds.

 

The Funds pay respective brokerage commissions, including applicable exchange fees, National Futures Association (“NFA”) fees, give–up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with trading activities in CFTC regulated investments. Brokerage commissions on futures contracts are recognized on a half-turn basis.

 

The Sponsor does not expect annual brokerage commissions and fees to exceed 0.40% for BDRY and 1.35% for BWET (excluding the impact on each Fund of creation and/or redemption activity) of the net asset value of BDRY and BWET, respectively, for execution and clearing services on behalf of the Funds, although the actual amount of brokerage commissions and fees in any year or any part of any year may be greater. The effects of trading spreads, financing costs associated with financial instruments, and costs relating to the purchase of U.S. Treasury Securities or similar high credit quality short-term fixed-income or similar securities are not included in the foregoing analysis. BDRY incurred $164,318 and $142,544 in brokerage commissions and fees for the three months ended December 31, 2023 and 2022, respectively, and $356,616 and $252,166 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET incurred $8,823 and $24,327 in brokerage commissions and fees for the three and six months ended June 30, 2023, respectively, as disclosed in the Combined Statement of Operations.

 

27

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(4) Agreements - Continued

 

(e) The Trustee

 

Under the Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”) for each Fund, Wilmington Trust Company, the Trustee of each of the Funds (the “Trustee”) serves as the sole trustee of each Fund in the State of Delaware. The Trustee will accept service of legal process on the Funds in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. Under the Trust Agreement for each Fund, the Sponsor has the exclusive management and control of all aspects of the business of the Funds. The Trustee does not owe any other duties to the Funds, the Sponsor or the Shareholders of the Funds. The Trustee has no duty or liability to supervise or monitor the performance of the Sponsor, nor does the Trustee have any liability for the acts or omissions of the Sponsor. BDRY incurred $628 and $1,260 in trustee fees for the three months ended December 31, 2023 and 2022, respectively, and $1,256 and $2,520 for the six months ended December 31, 2023 and 2022, respectively, which is included in Other Expenses in the Combined Statements of Operations. BWET incurred $628 and $1,256 in trustee fees for the three and six months ended December 31, 2023, respectively as disclosed in the Combined Statement of Operations.

 

(f) Routine Offering, Operational, Administrative and Other Ordinary Expenses

 

The Sponsor, in accordance with the BDRY Expense Cap limitation paid, after the waiver of the CTA fee for BDRY by Breakwave, if any, all of the routine offering, operational, administrative and other ordinary expenses of BDRY in excess of 3.50% (excluding brokerage commissions and interest expense) of BDRY’s average daily net assets, including, but not limited to, accounting and computer services, the fees and expenses of the Trustee, Administrator, Custodian, Transfer Agent and Distributor, legal and accounting fees and expenses, tax return preparation expenses, filing fees, and printing, mailing and duplication costs. BDRY incurred $650,217 and $505,629 for the three months ended December 31, 2023 and 2022, respectively, and $1,351,888 and $976,903 for the six months ended December 31, 2023 and 2022, respectively, in routine offering, operational, administrative or other ordinary expenses.

 

The CTA fee waiver for BDRY by Breakwave was $-0- and $38,707 for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $66,332 for the six months ended December 31, 2023 and 2022, respectively.

 

In addition, the assumption of Fund expenses above the BDRY Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted to $-0- and $-0- for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $-0- for the six months ended December 31, 2023 and 2022, respectively.

 

The Sponsor, in accordance with the BWET Expense Cap limitation paid, after the waiver of a portion of the CTA fee for BWET by Breakwave, all of the routine offering, operational, administrative and other ordinary expenses of BWET in excess of 3.50% (excluding brokerage commissions and interest expense) of BWET’s average daily net assets, including, but not limited to, accounting and computer services, the fees and expenses of the Trustee, Administrator, Custodian, Transfer Agent and Distributor, legal and accounting fees and expenses, tax return preparation expenses, filing fees, and printing, mailing and duplication costs. BWET incurred $108,527 and $253,668 for the three and six months ended December 31, 2023, respectively, in routine offering, operational, administrative or other ordinary expenses.

 

The CTA fee waiver for BWET by Breakwave was $7,347 and $20,130 for the three months and six months ended December 31, 2023, respectively.

 

In addition, the assumption of Fund expenses above the BWET Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted to $74,622 and 160,731 for the three and six months ended December 31, 2023, respectively.

 

28

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(4) Agreements - Continued

 

(g) Organizational and Offering Costs

 

Expenses incurred in connection with organizing BDRY and BWET and up to the offering of their Shares upon commencement of their investment operations on March 22, 2018 and May 3, 2023, respectively, were paid by the Sponsor and Breakwave without reimbursement.

 

Accordingly, all such expenses are not reflected in the Combined Statements of Operations. The Funds will bear the costs of their continuous offering of Shares and ongoing offering expenses. Such ongoing offering costs will be included as a portion of the Routine Offering, Operational, Administrative and Other Ordinary Expenses. These costs will include registration fees for regulatory agencies and all legal, accounting, printing and other expenses associated therewith.

 

(h) Extraordinary Fees and Expenses

 

The Funds will pay all extraordinary fees and expenses, if any. Extraordinary fees and expenses are fees and expenses which are nonrecurring and unusual in nature, such as legal claims and liabilities, litigation costs or indemnification or other unanticipated expenses. Such extraordinary fees and expenses, by their nature, are unpredictable in terms of timing and amount. For the three and six months ended December 3’, 2023 and 2022, respectively, BDRY did not incur such expenses. For the three and six months ended December 31, 2023, respectively, BWET did not incur such expenses.

 

(5) Creations and Redemptions

 

Each Fund issues and redeems Shares from time to time, but only in one or more Creation Baskets. A Creation Basket is a block of 25,000 Shares of the particular Fund. Baskets may be created or redeemed only by Authorized Participants.

 

Except when aggregated in Creation Baskets, the Shares are not redeemable securities. Retail investors, therefore, generally will not be able to purchase or redeem Shares directly from or with the Fund. Rather, most retail investors will purchase or sell Shares in the secondary market with the assistance of a broker. Thus, some of the information contained in these Notes to Interim Combined Financial Statements – such as references to the Transaction Fee imposed on creations and redemptions – is not relevant to retail investors.

 

(a) Transaction Fees on Creation and Redemption Transactions

 

In connection with orders to create and redeem one or more Creation Baskets, an Authorized Participant is required to pay a transaction fee, or AP Transaction Fee, of $300 per BDRY or BWET order, which goes directly to the Custodian. The AP Transaction Fees are paid by the Authorized Participants and not by the Funds.

 

b) Share Transactions

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Three Months Ended December 31, 2023
   Shares   Net Assets
Decrease		 
Shares Sold   25,000   $145,145 
Shares Redeemed   (6,850,000)   (50,163,369)
Net Decrease   (6,825,000)  $(50,018,224)

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Three Months Ended December 31, 2022
   Shares   Net Assets
Decrease		 
Shares Sold   1,475,000   $11,574,875 
Shares Redeemed   (1,575,000)   (13,796,285)
Net Decrease   (100,000)  $(2,221,410)

 

29

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(5) Creations and Redemptions - Continued

 

b) Share Transactions - Continued

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Six Months Ended December 31, 2023
   Shares   Net Assets
Decrease		 
Shares Sold   2,825,000   $13,708,463 
Shares Redeemed   (8,650,000)   (59,822,874)
Net Decrease   (5,825,000)  $(46,114,411)

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Six Months Ended December 31, 2022
   Shares   Net Assets
Increase		 
Shares Sold   4,025,000   $35,223,901 
Shares Redeemed   (2,825,000)   (26,377,835)
Net Increase   1,200,000  $8,846,066

 

BREAKWAVE TANKER SHIPPING ETF

 

Summary of Share Transactions for the Three Months Ended December 31, 2023
   Shares   Net Assets
Increase		 
Shares Sold   25,000   $392,110 
Shares Redeemed   -   -
Net Increase   25,000   $392,110

 

BREAKWAVE TANKER SHIPPING ETF

 

Summary of Share Transactions for the Six Months Ended December 31, 2023
    Shares     Net Assets
Decrease		  
Shares Sold     25,000     $ 392,110  
Shares Redeemed     (100,000 )     (1,716,210 )
Net Decrease     (75,000 )   $ (1,324,100 )

 

30

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(6) Risk

 

(a) Investment Related Risk

 

The NAV of BDRY and BWET shares relates directly to the value of the futures investments held by each Fund which are materially impacted by fluctuations in changes in spot charter rates. Charter rates for dry bulk vessels and crude oil tankers are volatile and have declined significantly since their historic highs and may remain at low levels or decrease further in the future.

 

Futures and options contracts have expiration dates. Before or upon the expiration of a contract, BDRY and/or BWET may be required to enter into replacement contracts that are priced higher or that have less favorable terms than the contracts being replaced (see “Negative Roll Risk,” below). The Freight Futures market settles in cash against published indices, so there is no physical delivery against the futures contracts.

 

Similar to other futures contracts, the Freight Futures curve shape could be either in “contango” (where the futures curve is upward sloping with the next futures price higher than the current one) or “backwardation” (where each of the next futures prices are lower than the current one). Contango curves are generally characterized by negative roll cost, as the expiring contract value is lower that the next prompt contract value, assuming the same lot size. That means there could be losses incurred when the contracts are rolled each period (“Negative Roll Risk”) and such losses are independent of the Freight Futures price level.

 

The Russia-Ukraine war poses an increasing risk for global economic growth. Major economic sanctions against Russia are having a considerable impact on oil and gas prices, given the dependence of the EU on oil and gas exports out of Russia combined with limited spare capacity of such commodities globally. Energy prices have increased significantly, leading to major inflationary pressures in the major developed countries that rely heavily on oil and gas exports out of Russia. In the case of BDRY, the combined Russia/Ukraine region account for approximately one-quarter of global grain production, one of the main cargoes transported by dry bulk vessels, while coal and iron ore exports out of the region have also been reduced. The above factors can have a material negative impact on demand for dry bulk transportation, while slower economic growth could also negatively affect demand for dry bulk commodities in the rest of the world, leading to lower dry bulk freight rates.

 

The conflict between Russia and Ukraine is having a profound impact on global commodities prices including grain and coal, two of the most important commodities for dry bulk shipping. Given the importance of the region in export volumes for both grains and coal, a prolonged stoppage could lead to significantly lower freight rates and thus a decline in freight futures prices and a decline in the value of BDRY. Although coal supplies could potentially be sourced from elsewhere partly mitigating the negative impact of the lost volumes, global grain production capacity is limited, and thus the impact of the lost volumes could not be easily mitigated. In addition, the recent geopolitical turmoil has led to an increase in government protectionism when it comes to commodities, and if such a trend continues, it could lead to lower bulk commodities trading globally over the long term. The impact of such a scenario on dry bulk shipping will be negative, leading to lower spot rates and as a result lower freight futures prices and a decline in the value of BDRY.

 

In the case of BWET, the conflict between Russia and Ukraine has also had a profound impact on oil prices and as a result on tanker rates and might continue to impact the level of tanker rates for years to come. Russia accounts for more than 10% of global oil production. Sanctions put in place to limit the exports of crude oil and refined products from Russia has caused a reshuffling in tanker trade patterns and has led to increasing volatility in tanker freight rates. With limited seaborne crude exports out of Russia, refiners and oil traders have been seeking alternative sources for feedstock crude, causing major disruptions in the traditional crude oil trading patterns. Volatility in tanker rates has increased, especially for tankers carrying refined products. As volatility of spot charter rates increases, higher trading volumes in freight futures would be expected as market participants tend to increase their hedging requirements. In addition, oil price volatility has increased significantly, impacting tanker spot rate freight rates. 

 

Most recently, Hamas attacked Israel, with Israel then declaring war on Hamas in the Gaza Strip. This conflict has stoked fears of oil supply instability in the Middle East and globally. While not having an immediate impact on global oil production or tanker trade patterns, escalation or expansion of hostilities, interventions by other groups or nations, the imposition of economic sanctions on any of the oil producing nations, disruption of shipping transit in the Straits of Hormuz or other significant trade routes, or similar outcomes could lead to oil supply instability. The conflict is ongoing and, should it escalate and expand toother oil producing nations in the region, it may have a profound negative impact on oil prices and, as a result, the supply and demand for freight that could have a negative impact on spot freight rates for dry bulk and liquid freight and on Freight Futures.

 

In addition, The People’s Republic of China (“China”) accounts for a sizable part of oil demand, and changes in the economic and political environment in China and policies adopted by the government to regulate its economy may have a material adverse effect on tanker charter rates and as a result, Freight Futures.

 

31

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(6) Risk - Continued

 

(b) Liquidity Risk

 

In certain circumstances, such as the disruption of the orderly markets for the futures contracts or Financial Instruments in which the Fund invest, the Funds might not be able to dispose of certain holdings quickly or at prices that represent what the market value may have been in an orderly market. Futures and option positions cannot always be liquidated at the desired price. It is difficult to execute a trade at a specific price when there is a relatively small volume of buy and sell orders in a market. A market disruption can also make it difficult to liquidate a position. The large size of the positions that the Funds may acquire increases the risk of illiquidity both by making its positions more difficult to liquidate and by potentially increasing losses while trying to do so. Such a situation may prevent the Funds from limiting losses, realizing gains or achieving a high correlation with the applicable Benchmark Portfolio.

 

(c) Natural Disaster/Epidemic Risk 

 

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics (for example, the novel coronavirus COVID-19), have been and can be highly disruptive to economies and markets and have recently led, and may continue to lead, to increased market volatility and significant market losses. Such natural disaster and health crises could exacerbate political, social, and economic risks previously mentioned, and result in significant breakdowns, delays, shutdowns, social isolation, and other disruptions to important global, local and regional supply chains affected, with potential corresponding results on the operating performance of the Funds and their investments. A climate of uncertainty and panic, including the contagion of infectious viruses or diseases, may adversely affect global, regional, and local economies and reduce the availability of potential investment opportunities, and increases the difficulty of performing due diligence and modeling market conditions, potentially reducing the accuracy of financial projections. Under these circumstances, the Funds may have difficulty achieving their investment objectives which may adversely impact performance. Further, such events can be highly disruptive to economies and markets, significantly disrupt the operations of individual companies (including, but not limited to, the Funds’ Sponsor and third party service providers), sectors, industries, markets, securities and commodity exchanges, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Funds’ investments. These factors can cause substantial market volatility. exchange trading suspensions and closures and can impact the ability of the Funds to complete redemptions and otherwise affect each Fund’s performance and the Funds’ trading in the secondary market. A widespread crisis may also affect the global economy in ways that cannot necessarily be foreseen at the current time. How long such events will last and whether they will continue or recur cannot be predicted. Impacts from these events could have significant impact on the Funds’ performance, resulting in losses to the Funds.

 

(7) Profit and Loss Allocations and Distributions

 

Pursuant to the Trust Agreement, income and expenses of the Funds are allocated pro rata among the Shareholders monthly based on their respective percentage interests as of the close of the last trading day of the preceding month.

 

Any losses allocated to the Sponsor which are in excess of the Sponsor’s capital balance are allocated to the Shareholders in accordance with their respective interest in the applicable Fund as a percentage of total Shareholders’ capital. Distributions (other than redemption of units) may be made at the sole discretion of the Sponsor on a pro rata basis in accordance with the respective interests of the Shareholders.

 

(8) Indemnifications

 

The Sponsor, either in its own capacity or in its capacity as the Sponsor and on behalf of the Funds, has entered into various service agreements that contain a variety of representations, or provide indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Funds. As of December 31, 2023, the Funds had not received any claims or incurred any losses pursuant to these agreements and expects the risk of such losses to be remote.

 

(9) Termination

 

The term of each Fund is perpetual unless terminated earlier in certain circumstances as described in the applicable Prospectus.

 

(10) Net Asset Value and Financial Highlights

 

The Funds are presenting, as applicable, the following net asset value and financial highlights related to investment performance for a Share outstanding throughout the three and six months ended December 31, 2023 and December 31, 2022, respectively. The net investment income and total expense ratios are calculated using average net assets. The net asset value presentation is calculated by dividing each Fund’s net assets by the average daily number of Shares outstanding. The net investment income (loss) and expense ratios have been annualized. The total return is based on the change in net asset value and market value of the Shares during the period. An individual investor’s return and ratios may vary based on the timing of their transactions in Fund Shares.

 

32

 

 

Amplify Commodity Trust

(Formerly, ETF Managers Group Commodity Trust I)

Notes to Interim Combined Financial Statements

December 31, 2023 (unaudited)

 

(10) Net Asset Value and Financial Highlights - Continued

 

   BREAKWAVE DRY BULK   BREAKWAVE TANKER 
   SHIPPING ETF   SHIPPING ETF 
   For the Three Months Ended
December 31,		   For the Three Months Ended
December 31,		 
   2023   2022   2023   2022 
                 
Net Asset Value                
Net asset value per Share, beginning of period  $5.50   $8.75   $15.48   $- 
Net investment income (loss)   (0.02)   (0.08)   (0.16)   - 
Net realized and unrealized gain (loss)   6.16    0.71    0.72    - 
Net Income (Loss)   6.14    0.63    0.56    - 
Net Asset Value per Share, end of period  $11.64   $9.38   $16.04   $- 
Market Value per Share, end of period  $11.56   $9.19   $16.15   $- 
Ratios to Average Net Assets*                    
Expense Ratio***   4.38%   5.04%   5.24%   0.00%
Expense Ratio*** before Waiver/Assumption   4.38%   5.46%   21.42%   0.00%
Net Investment Income (Loss)   (1.30)%   (3.77)%   (3.77)%   0.00%
Total Return, at Net Asset Value**   111.64%   7.20%   3.62%   0.00%
Total Return, at Market Value**   110.56%   1.66%   2.41%   0.00%

 

*Percentages are annualized
**Percentages are not annualized
***Fund expenses have been capped at 3.50% of average daily net assets, plus brokerage commissions, interest expense, and extraordinary expenses, if any.

 

   BREAKWAVE DRY BULK  

BREAKWAVE TANKER

 
   SHIPPING ETF   SHIPPING ETF 
   For the Six Months Ended
December 31,		  

For the Six Months Ended

December 31,

 
   2023   2022   2023   2022 
                 
Net Asset Value                    
Net asset value per Share, beginning of period  $5.53   $17.06   $20.83   $- 
Net investment income (loss)   (0.03)   (0.18)   (0.37)   - 
Net realized and unrealized gain (loss)   6.14    (7.50)   (4.42)   - 
Net Income (Loss)   6.11    (7.68)   (4.79)   - 
Net Asset Value per Share, end of period  $11.64   $9.38   $16.04   $- 
Market Value per Share, end of period  $11.56   $9.19   $16.16   $- 
Ratios to Average Net Assets*                    
Expense Ratio***   4.32%   4.85%   5.24%   0.00%
Expense Ratio*** before Waiver/Assumption   4.32%   5.21%   18.27%   0.00%
Net Investment Income (Loss)   (1.14)%   (3.76)%   (4.24)%   0.00%
Total Return, at Net Asset Value**   110.49%   (45.02)%   (23.00)%   0.00%
Total Return, at Market Value**   108.29%   (46.48)%   (22.65)%   0.00%

 

*Percentages are annualized
**Percentages are not annualized
***Fund expenses have been capped at 3.50% of average daily net assets, plus brokerage commissions, interest expense, and extraordinary expenses, if any.

 

(11) Subsequent Events

 

The Trust and Breakwave Dry Bulk Shipping ETF (“BDRY”) and Breakwave Tanker Shipping ETF (“BWET,” and together with BDRY, each a “Fund” and collectively, the “Funds”) are managed and controlled by the Sponsor, (Amplify Investments LLC). Effective after the close of trading on February 14, 2024, the Former Sponsor, ETF Managers Capital LLC, entered into a Transfer Agreement to resign as Sponsor to the Trust and transfer its role as the Trust’s sponsor to the Sponsor. Under the terms of the Transfer Agreement, the Former Sponsor no longer has any involvement in the operations, management or marketing of the Fund. Breakwave Advisors LLC (“Breakwave”) continues to serve as the Fund’s commodity trading advisor. The Sponsor, Former Sponsor, Breakwave and the Trust do not believe that the change of Trust sponsor will have any impact on a shareholder’s investment in the Fund.

 

In preparing these interim financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the interim financial statements were issued. This evaluation did not result in any other subsequent events that necessitated disclosures and/or adjustments to the financial statements.

 

33

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

This information should be read in conjunction with the financial statements and notes included in Item 1 of Part I of this Quarterly Report (the “Report”). The discussion and analysis which follows may contain trend analysis and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 which reflect our current views with respect to future events and financial results. Words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “outlook” and “estimate,” as well as similar words and phrases, signify forward-looking statements. Any forward-looking statements of Amplify Commodity Trust (the “Trust”) are not guarantees of future results and conditions, and important factors, risks and uncertainties may cause our actual results to differ materially from those expressed in our forward-looking statements.

 

You should not place undue reliance on any forward-looking statements. Except as expressly required by the Federal securities laws, Amplify Investments LLC undertakes no obligation to publicly update or revise any forward-looking statements or the risks, uncertainties or other factors described in this Report, as a result of new information, future events or changed circumstances or for any other reason after the date of this Report.

 

Overview

 

The Trust is a Delaware statutory trust formed on July 23, 2014. Prior to February 15, 2024, the Trust was named ETF Managers Group Commodity Trust I. The Trust is a series trust formed pursuant to the Delaware Statutory Trust Act and currently includes two separate series: BDRY and BWET. Each Fund is a commodity pool that continuously issues shares of beneficial interest that may be purchased and sold on the NYSE Arca.

 

The Funds are each managed and controlled by Amplify Investments LLC (the “Sponsor” or “Amplify”), a single member limited liability company that was formed in the state of Delaware on October 2, 2014. The Funds pay the Sponsor a management fee. The Sponsor, the Trust, and the Funds maintain their main business offices at 3333 Warrenville Road, Suite 350, Lisle, IL 60532. The Sponsor’s telephone number is (855) 267-3837.

 

The Sponsor is a wholly-owned subsidiary of Amplify Holding Company LLC, a limited liability company domiciled and headquartered in Illinois.

 

The Sponsor has the power and authority to establish and designate one or more series and to issue shares thereof, from time to time as it deems necessary or desirable. The Sponsor has exclusive power to fix and determine the relative rights and preferences as between the shares of any series as to the right of redemption, special and relative rights as to dividends and other distributions and on liquidation, conversion rights, and conditions under which the series shall have separate voting rights or no voting rights. The term for which the Trust is to exist commenced on the date of the filing of the Certificate of Trust, and the Trust, the Funds, and any additional series created in the future will exist in perpetuity, unless earlier terminated in accordance with the provisions of the Trust Agreement. Separate and distinct records shall be maintained for each Fund and the assets associated with a Fund shall be held in such separate and distinct records (directly or indirectly, including a nominee or otherwise) and accounted for in such separate and distinct records separately from the assets of any other series. The Funds and each future series will be separate from all such series in respect of the assets and liabilities allocated to a Fund and each separate series and will represent a separate investment portfolio of the Trust.

 

Each Fund is a “commodity pool” as defined by the Commodity Exchange Act (“CEA”). Consequently, the Sponsor has registered as a commodity pool operator (“CPO”) with the Commodity Futures Trading Commission (“CFTC”) and is a member of the National Futures Association (“NFA”).

 

Effective after the closing of trading on February 14, 2024, ETF Managers Capital, LLC, the prior sponsor of the Trust, resigned from its position as sponsor of the Trust. Concurrently, Amplify was appointed as successor sponsor to the Trust. Effective February 15, 2024, the Funds are managed and controlled by Amplify in its capacity as sponsor for the Trust.

 

The sole Trustee of the Trust is Wilmington Trust, N.A. (the “Trustee”), and the Trustee serves as the Trust’s corporate trustee as required under the Delaware Statutory Trust Act (“DSTA”). The Trustee’s principal offices are located at 1100 North Market Street, Wilmington, Delaware 19890. The Trustee is unaffiliated with the Sponsor. The rights and duties of the Trustee and the Sponsor with respect to the offering of the Shares and Fund management and the shareholders are governed by the provisions of the DSTA and by the Trust Agreement.

 

BDRY commenced trading on the NYSE Arca on March 22, 2018 and trades under the symbol “BDRY”.

 

BWET commenced trading on NYSE Arca on May 3, 2023 and trades under the symbol “BWET”.

 

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Each Fund is designed and managed to track the performance of a portfolio (a “Benchmark Portfolio”) consisting of futures contracts (the “Benchmark Component Instruments”).

 

Breakwave Dry Bulk Shipping ETF

 

The Investment Objective of the Fund

 

BDRY’s investment objective is to provide investors with exposure to the daily change in the price of dry bulk freight futures by tracking the performance of a portfolio (the “BDRY Benchmark Portfolio”) and consisting of exchange-cleared futures contracts on the cost of shipping dry bulk freight (“Dry Freight Futures”). BDRY seeks to achieve its investment objective by investing substantially all of its assets in the Dry Freight Futures currently constituting the BDRY Benchmark Portfolio.

 

The BDRY Benchmark Portfolio

 

The BDRY Benchmark Portfolio is maintained by Breakwave Advisors LLC (“Breakwave”), which also serves as BDRY’s CTA. The BDRY Benchmark Portfolio consists of the Dry Freight Futures, which are a three-month strip of the nearest calendar quarter of futures contracts on specified indexes (each a “Reference Index”) that measure rates for shipping dry bulk freight. Each Reference Index is published each United Kingdom business day by the London-based Baltic Exchange Ltd. (the “Baltic Exchange”) and measures the charter rate for shipping dry bulk freight in a specific size category of cargo ship – Capesize, Panamax or Supramax. The three Reference Indexes are as follows:

 

  ● Capesize: the Capesize 5TC Index;

 

  ● Panamax: the Panamax 4TC Index; and

 

  ● Supramax: the Supramax 6TC Index.

 

The BDRY Benchmark Component Instruments currently constituting the BDRY Benchmark Portfolio as of December 31, 2023 include: 

Name  Ticker  Market
Value USD		 
Baltic Capesize Time Charter - Jan 24  BFFATC F24 Index  $14,275,800 
Baltic Capesize Time Charter -  Feb 24  BFFATC G24 Index   8,862,600 
Baltic Capesize Time Charter -  Mar 24  BFFATC H24 Index   9,462,600 
Baltic Exchange Panamax T/C Average Shipping Route Index - Jan 24  BFFAP F24 Index   7,868,840 
Baltic Exchange Panamax T/C Average Shipping Route Index - Feb 24  BFFAP G24 Index   7,378,500 
Baltic Exchange Panamax T/C Average Shipping Route Index - Mar 24  BFFAP H24 Index   7,812,500 
Baltic Exchange Supramax T/C Average Shipping Route Index – Jan 24  S58FM F24 Index   1,890,460 
Baltic Exchange Supramax T/C Average Shipping Route Index – Feb 24  S58FM G24 Index   1,791,790 
Baltic Exchange Supramax T/C Average Shipping Route Index – Mar 24   S58FM H24 Index   1,909,440 

 

The value of the Capesize 5TC Index is disseminated at 11:00 a.m., London Time and the value of the Panamax 4TC Index and the Supramax 6TC Index each is disseminated at 1:00 p.m., London Time. The Reference Index information disseminated by the Baltic Exchange also includes the components and value of each component in each Reference Index. Such Reference Index information also is widely disseminated by Reuters and/or other major market data vendors.

 

BDRY seeks to achieve its investment objective by investing substantially all of its assets in the Dry Freight Futures currently constituting the BDRY Benchmark Portfolio. The BDRY Benchmark Portfolio will include all existing positions to maturity and settle them in cash. During any given calendar quarter, the BDRY Benchmark Portfolio will progressively increase its position to the next calendar quarter three-month strip, thus maintaining constant exposure to the Dry Freight Futures market as positions mature.

 

The BDRY Benchmark Portfolio will maintain long-only positions in Dry Freight Futures. The BDRY Benchmark Portfolio will include a combination of Capesize, Panamax and Supramax Freight Futures. More specifically, the BDRY Benchmark Portfolio will include 50% exposure in Capesize Freight Futures contracts, 40% exposure in Panamax Freight Futures contracts and 10% exposure in Supramax Freight Futures contracts. The BDRY Benchmark Portfolio will not include and the Fund will not invest in swaps, non-cleared dry bulk freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses. The Fund may hold exchange-traded options on Dry Freight Futures. The BDRY Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Dry Freight Futures currently constituting the Benchmark Portfolio, as well as the daily holdings of the Fund will be available on the Fund’s website at www.drybulketf.com.

 

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When establishing positions in Dry Freight Futures, BDRY will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Dry Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or the Fund’s futures commission merchant (“FCM”). On a daily basis, the Fund will be obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Dry Freight Futures positions. Any assets not required to be posted as margin with the FCM may be held at the Fund’s custodian in cash or cash equivalents.

 

BDRY will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment or as collateral for the freight futures contracts and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. The Fund may also realize interest income from its holdings in U.S. Treasuries or other market rate instruments.

 

Breakwave Tanker Shipping ETF

 

The Investment Objective of the Fund

 

BWET’s investment objective is to provide investors with exposure to the daily change in the price of crude oil tanker freight futures by tracking the performance of a portfolio (the “BWET Benchmark Portfolio” and, collectively with the BDRY Benchmark Portfolio, the “Benchmark Portfolios”) consisting of exchange-cleared futures contracts on the cost of shipping crude oil (“Oil Freight Futures” and, collectively with Dry Freight Futures, the “Freight Futures”). BWET seeks to achieve its investment objective by investing substantially all of its assets in the Oil Freight Futures currently constituting the BWET Benchmark Portfolio.

 

The BWET Benchmark Portfolio

 

The BWET Benchmark Portfolio is maintained by Breakwave, which also serves as BWET’s CTA. The BWET Benchmark Portfolio consists of the Oil Freight Futures, which are a three-month strip of the nearest calendar quarter of futures contracts on specified indexes (each a “Reference Index”) that measure rates for shipping crude oil. Each Reference Index is published each United Kingdom business day by the Baltic Exchange and measures the charter

 

rate for shipping crude oil in a specific size category of cargo ship and for a specific route - TD3C or TD20. The two Reference Indexes are as follows:

 

  ● TD3C: the TD3C Index; and

 

  ● TD20: the TD20 Index.

 

The Oil Freight Futures currently constituting the BWET Benchmark Portfolio as of December 31, 2023 include:

 

Name  Ticker  Market
Value USD		 
Baltic TD3C Time Charter – Jan 24  BFFA3D F24 Index  $622,300 
Baltic TD3C Time Charter - Feb 24  BFFA3D G24 Index   618,723 
Baltic TD3C Time Charter -  Mar 24  BFFA3D H24 Index   616,567 
Baltic TD20 Time Charter – Jan 24  BFFD20 F24 Index   97,000 
Baltic TD20 Time Charter – Feb 24  BFFD20 G24 Index   180,000 

 

The value of the TD3C Index and the TD20 Index is disseminated daily at 4:00 p.m. London Time by the Baltic Exchange. The Reference Index information disseminated by the Baltic Exchange also includes the components and value of each component in each Reference Index. Such Reference Index information also is widely disseminated by Reuters and/or other major market data vendors.

 

BWET seeks to achieve its investment objective by investing substantially all of its assets in the Oil Freight Futures currently constituting the BWET Benchmark Portfolio. The BWET Benchmark Portfolio will include all existing positions to maturity and settle them in cash. During any given calendar quarter, the BWET Benchmark Portfolio will progressively increase its position to the next calendar quarter three-month strip, thus maintaining constant exposure to the Oil Freight Futures market as positions mature.

 

The BWET Benchmark Portfolio will maintain long-only positions in Oil Freight Futures. The BWET Benchmark Portfolio will include a combination of TD3C and TD20 Oil Freight Futures. More specifically, the BWET Benchmark Portfolio will include 90% exposure in TD3C Oil Freight Futures contracts and 10% exposure in TD20 Oil Freight Futures contracts. The BWET Benchmark Portfolio will not include and BWET will not invest in swaps, non-cleared crude oil freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses. BWET may hold exchange-traded options on Oil Freight Futures. The BWET Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Oil Freight Futures currently constituting the BWET Benchmark Portfolio, as well as the daily holdings of BWET will be available on BWETS’s website at www.tankeretf.com.

 

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When establishing positions in Oil Freight Futures, BWET will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Oil Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or BWET’s FCM. On a daily basis, BWET will be obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Oil Freight Futures positions. Any assets not required to be posted as margin with BWET’s FCM will generally be held at BWET’s custodian in cash or cash equivalents, as discussed below.

 

BWET will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. BWET may also realize interest income from its holdings in U.S. Treasuries or other market rate instruments.

 

The Sponsor

 

Amplify Investments LLC is the sponsor of the Trust and the Funds. The Sponsor is a Delaware limited liability company, formed on October 2, 2014. The principal office is located at 3333 Warrenville Road, Suite 350, Lisle, IL 60532. The Sponsor registered as a commodity pool operator (“CPO”) with the Commodity Futures Trading Commission (“CFTC”) on October 3, 2023, and became a member of the National Futures Association (“NFA”) on October 25, 2023. The Trust and the Funds operate pursuant to the Trust Agreement. The Sponsor is a wholly-owned subsidiary of Amplify Holding Company LLC, a limited liability company domiciled and headquartered in Illinois.

 

Under the Trust Agreement, the Sponsor has exclusive management and control of all aspects of the Trust’s business. The Trustee has no duty or liability to supervise the performance of the Sponsor, nor will the Trustee have any liability for the acts or omissions of the Sponsor. The shareholders have no voice in the day to day management of the business and operations of the Funds and the Trust, other than certain limited voting rights as set forth in the Trust Agreement. In the course of its management of the business and affairs of the Funds and the Trust, the Sponsor may, in its sole and absolute discretion, appoint an affiliate or affiliates of the Sponsor as additional sponsors and retain such persons, including affiliates of the Sponsor, as it deems necessary to effectuate and carry out the purposes, business and objectives of the Trust.

 

Breakwave Dry Bulk Shipping ETF

 

During the three months ended December 31, 2023, dry bulk freight rates were volatile, with the Baltic Dry Index, an index that tracks global spot rates for dry bulk shipping, ending the quarter up by almost 23% after almost doubling in price in early December before declining towards the end of the month. The broader shipping sector has seen significant disruptions due to reduced sailing through the world’s two most important waterways, namely the Panama Canal and the Suez Canal. The ongoing draught in the Panama Canal has reduced transits, leading to less available ships for chartering in the Atlantic region. In addition, the recent attacks on commercial vessels in the Red Sea has led to a large number of vessels diverting away from the region and sailing around Africa’s Cape of Good Hope, in the process increasing sailing distances and reducing the effective supply of vessels. Dry bulk shipping has been affected by those factors, and combined with the impact of seasonality, led to a volatile period for spot freight rates. At the end of the quarter and following the increase in volatility for spot rates, expectations were for the next quarter to be relatively strong, even though historically the quarter ending March 31 tends to be the weakest period of any given year.

 

During the three months ended December 31, 2023, Capesize freight futures volatility experienced a significant increase reflecting higher uncertainty in the physical freight market as a result of geopolitical developments. Although the first two months of the quarter were relatively stable in terms of volatility, the late quarter rally in freight rates led to an increase in the Capesize freight futures, as well as expectations for the quarter ended March 31, 2024 for all vessel classes. Towards the end of the three months ended December 31, 2023, expectations for the historically weak quarter ending March 31, 2024 were revised sharply higher, leading to a strong performance for freight futures in the first quarter of 2024. BDRY closely tracked the performance of short-term dry bulk freight futures and ended the quarter up about 101%.

 

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NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

The per Share market value of BDRY and its NAV tracked closely for the three months ended December 31, 2023.

 

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NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

The per Share market value of BDRY and its NAV tracked closely for the three months ended December 31, 2022. 

 

39

 

 

 

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

The per Share market value of BDRY and its NAV tracked closely for the six months ended December 31, 2022.

 

40

 

 

 

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

The per Share market value of BDRY and its NAV tracked closely for the six months ended December 31, 2022.

 

41

 

 

 

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

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NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

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NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

44

 

 

 

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

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The graphs above compare the returns of BDRY with the benchmark portfolio returns for the three months ended December 31, 2023 and 2022, and the six months ended December 31, 2023 and 2022. The difference in the NAV price and the benchmark value often results in the appearance of a NAV premium or discount to the benchmark. Differences in the benchmark return and the BDRY net asset value per share are due primarily to the following factors: 

 

  ● Benchmark portfolio uses settlement prices of freight futures vs. BDRY closing Share price,

 

  ● Benchmark portfolio roll methodology assumes rolls that can happen even at fractions of lots vs. BDRY that uses the real minimum market lot available (5 days per month),

 

  ● Benchmark portfolio assumes rolls are happening at the settlement price of the day vs. that buys at a transaction price during the day that might or might not be equal to the settlement price,

 

  ● Benchmark portfolio assumes no trading commissions vs. BDRY that pays 10bps for each transaction,

 

  ● Benchmark portfolio assumes no clearing fees vs. BDRY that pays approximately 3-5bps of total clearing fees for each trade,

 

  ● Benchmark portfolio assumes no management fees vs. BDRY fee structure of 3.5% of average net assets on an annualized basis, and

 

  ● Creations and redemptions that lead to transactions that occur at prices that might be different than the settlement prices

 

There are no competitors. BDRY is the only Freight futures ETF globally.

 

FOR THE THREE MONTHS ENDED DECEMBER 31, 2023

 

Fund Share Price Performance

 

During the three months ended December 31, 2023, the NYSE Arca market value of each Share increased (+110.56%) from $5.49 per Share, representing the closing price on September 30, 2023, to $11.56 per Share, representing the closing price on December 29, 2023. The Share price high and low for the three months ended December 31, 2023 and related change from the closing Share price on September 30, 2023 were as follows: Shares traded from a high of $11.78 per share (+114.57%) on December 29, 2023 to a low of $4.79 per share (-12.75%) on November 1, 2023.

 

Fund Share Net Asset Performance

 

For the three months ended December 31, 2023, the net asset value of each Share increased (+111.64%) from $5.50 per Share to $11.64 per Share. Gains in the investments and futures contracts more than offset the net investment loss resulting in the overall increase in the NAV per Share during the three months ended December 31, 2023.

 

Net income for the three months ended December 31, 2023, was $44,724,351, resulting from net realized gains on investments and futures contracts of $27,728,859, unrealized gains on futures contracts of $17,188,035 and the net investment loss of $192,543.

 

FOR THE THREE MONTHS ENDED DECEMBER 31, 2022

 

Fund Share Price Performance

 

During the three months ended December 31, 2022, the NYSE Arca market value of each Share increased (+1.66%) from $9.04 per Share, representing the closing trade on September 30, 2022, to $9.19 per Share, representing the closing price on December 30, 2022. The Share price high and low for the three months ended December 31, 2021 and related change from the closing Share price on September 30, 2022 were as follows: Shares traded from a high of $10.40 per Share (+15.04%) on October 4, 2022 to a low of $6.82 per Share (-24.56%) on November 22, 2022.

 

Fund Share Net Asset Performance

 

For the three months ended December 31, 2022, the net asset value of each Share increased (+7.20%) from $8.75 per Share to $9.38 per Share. Gains in the investments and futures contracts offset the net investment loss resulting in the overall increase in the NAV per Share during the three months ended December 31, 2022. Net income for the three months ended December 31, 2022, was $3,017,323, resulting from net realized losses on investments and futures contracts of $3,773,390, unrealized gains on futures contracts of $7,140,215 and the net investment loss of $349,502.

 

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FOR THE SIX MONTHS ENDED DECEMBER 31, 2023

 

Fund Share Price Performance

 

During the six months ended December 31, 2023, the NYSE Arca market value of each Share increased (+108.29%) from $5.55 per Share, representing the closing trade on June 30, 2023, to $11.56 per Share, representing the closing price on December 29, 2023. The Share price high and low for the six months ended December 31, 2023 and related change from the closing Share price on June 30, 2023 were as follows: Shares traded from a high of $11.78 per Share (+112.25%) on December 29, 2023 to a low of $4.48 per Share (-19.28%) on July 5, 2023.

 

Fund Share Net Asset Performance

 

For the six months ended December 31, 2023, the net asset value of each Share increased (+110.49%) from $5.53 per Share to $11.64 per Share. Gains in the futures contracts more than offset the net investment loss, resulting in the overall increase in the NAV per Share during the six months ended December 31, 2023.

 

Net income for the six months ended December 31, 2023, was $46,045,849, resulting from net realized gains on investments and futures contracts of $9,477,594, unrealized gains on futures contracts of $36,924,759 and the net investment loss of $356,504.

 

FOR THE SIX MONTHS ENDED DECEMBER 31, 2022

 

Fund Share Price Performance

 

During the six months ended December 31, 2022, the NYSE Arca market value of each Share decreased (-46.48%) from $17.17 per Share, representing the closing trade on June 30, 2022, to $9.19 per Share, representing the closing price on December 30, 2022. The Share price high and low for the six months ended December 31, 2022 and related change from the closing Share price on June 30, 2022 were as follows: Shares traded from a high of $17.16 per Share (-0.06%) on July 1, 2022 to a low of $6.75 per Share (-60.69%) on August 30, 2022.

 

Fund Share Net Asset Performance

 

For the six months ended December 31, 2022, the net asset value of each Share decreased (-45.02%) from $17.06 per Share to $9.38 per Share. Losses in the futures contracts and the net investment loss, resulted in the overall decrease in the NAV per Share during the six months ended December 31, 2022.

 

Net loss for the six months ended December 31, 2022, was $19,334,136, resulting from net realized losses on investments and futures contracts of $32,238,195, unrealized gains on futures contracts of $13,609,790 and the net investment loss of $705,731.

 

Breakwave Tanker Shipping ETF

 

During the three months ended December 31, 2023, freight rates remained in a tight range, with the benchmark VLCC TD3C rate (Middle East to China freight rate as measured in USD per ton) strengthening in the month of October, before stabilizing for the rest of the period, which left the index up approximately 10%. Expectations for a seasonally strong quarter did not materialize, as the recent oil production cuts by OPEC+ weighed on crude oil export volumes and thus on demand for crude oil transportation. Towards the end of the period, attacks on commercial ships transiting the Red Sea added to uncertainty and forced a large number of vessels to divert away from the Red Sea passage, and as a result the Suez Canal, and sail around Africa’s Cape of Good Hope, increasing sailing distances and thus reducing the global fleet’s effective supply. However, for the core VLCC segment that mainly trades away from the Red Sea region, the impact has so far been minimal. Global economic growth forecasts point to relatively tepid economic growth for 2024 and thus oil demand growth might remain relatively weak versus trend, potentially negatively impacting the crude tanker market.

 

During the three months ended December 31, 2023, tanker freight futures traded in a tight range, mostly following developments in the physical market. The shape of the futures curve remained relatively flat towards the end of the quarter, as positive expectations affecting the broader shipping sector, especially as it relates to the disruption in the Red Sea region, were offset by the negative impact of continuing lower crude oil volumes because of the recent OPEC+ crude oil production cuts. BWET closely tracked short-dated freight futures for VLCCs (TD3C) and ended the quarter relatively flat.

 

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 NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

The per Share market value of BWET and its NAV tracked closely for the three months ended December 31, 2023.

 

 

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

The per Share market value of BWET and its NAV tracked closely for the six months ended December 31, 2023.

 

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NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

 

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

 

The graphs above compares the return of BWET with the benchmark portfolio returns for the three and six months ended December 31, 2023. The difference in the NAV price and the benchmark value often results in the appearance of a NAV discount to the benchmark. Differences in the benchmark return and the BWET net asset value per share are due primarily to the following factors:

 

  ● Benchmark portfolio uses settlement prices of freight futures vs. BWET closing share price for BWET.

 

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  ● Benchmark portfolio roll methodology assumes rolls that happen evenly at fractions of lots vs. BWET that transacts at real minimum lot size available pursuant to market practice (5 lots minimum).

 

  ● Benchmark portfolio assumes rolls that are happening at daily settlement prices vs. BWET that transacts at prevailing prices during the day that might or might not be equal to settlement prices.

 

  ● Benchmark portfolio assumes no trading commissions vs. BWET that pays $0.04 per ton in commissions per transaction.

 

  ● Benchmark portfolio assumes no clearing fees vs BWET that pays approximately $7 per lot in clearing fees per transaction.

 

  ● Benchmark portfolio assumes no management fees vs. BWET fee structure.

 

  ● Creations and redemptions that lead to transactions in the freight futures market might occur at prices that might be different versus the settlement prices.

 

FOR THE THREE MONTHS ENDED DECMBER 31, 2023

 

Fund Share Price Performance

 

During the three months ended December 31, 2023, the NYSE Arca market value of each Share increased (+2.41%) from $15.77 per Share, representing the closing price on September 30, 2023, 2023, to $16.15 per Share, representing the closing price on December 29, 2023. The Share price high and low for the three months ended December 31, 2023 and related change from the closing Share price on September 30, 2023 were as follows: Shares traded from a high of $18.47 per Share (+17.12%) on October 30, 2023 to a low of $13.58 per Share (-13.89%) on October 6, 2023.

 

Fund Share Net Asset Performance

 

For the three months ended December 31, 2023, the net asset value of each Share increased (+3.62%) from $15.48 per Share to $16.04 per Share. Gains in the investments and futures contracts more than offset the net investment loss resulting in the overall increase in the NAV per Share during the three months ended December 31, 2023.

 

Net income for the three months ended December 31, 2023, was $65,462, resulting from net realized gains on investments and futures contracts of $96,553, net unrealized losses on investments and futures contracts of $12,008, and the net investment loss of $19,083.

 

FOR THE SIX MONTHS ENDED DECEMBER 31, 2023

 

Fund Share Price Performance

 

During the six months ended December 31, 2023, the NYSE Arca market value of each Share decreased (-22.65%) from $20.88 per Share, representing the closing price on June 30, 2023, to $16.15 per Share, representing the closing price on December 29, 2023. The Share price high and low for the six months ended December 31, 2023 and related change from the closing Share price on June 30, 2023 were as follows: Shares traded from a high of $20.64 per Share (-1.15%) on July 28, 2023 to a low of $13.58 per Share (-34.96%) on October 6, 2023.

 

Fund Share Net Asset Performance

 

For the six months ended December 31, 2023, the net asset value of each Share decreased (-23.00%) from $20.83 per Share to $16.04 per Share. Losses in the investments and futures contracts and the net investment loss resulted in the overall decrease in the NAV per Share during the six months ended December 31, 2023.

 

Net loss for the six months ended December 31, 2023, was $837,445, resulting from net realized gains on investments and futures contracts of $130,178, net unrealized losses on investments and futures contracts of $908,697, and the net investment loss of $58,926.

 

Calculating NAV

 

Each Fund’s NAV is calculated by: 

 

  ● Taking the current market value of its total assets;
     
  ● Subtracting any liabilities; and
     
  ● Dividing that total by the total number of outstanding shares.

  

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The Administrator calculates the NAV of the Funds once each NYSE Arca trading day. The NAV for a particular trading day is released after 4:00 p.m. E.T. Regular trading on the NYSE Arca typically closes at 4:00 p.m. E.T. The Administrator uses the Baltic Exchange settlement price for the Freight Futures and option contracts. The Administrator calculates or determines the value of all other BDRY and BWET investments using market quotations, if available, or other information customarily used to determine the fair value of such investments as of the close of the NYSE Arca (normally 4:00 p.m. E.T.), in accordance with the current Administrative Agency Agreement among U.S. Bancorp Fund Services, the Fund and the Sponsor.

 

In addition, in order to provide updated information relating to the Funds for use by investors and market professionals, an updated indicative fund value (“IFV”) is made available through on-line information services throughout the core trading hours of 9:30 a.m. E.T. to 4:00 p.m. E.T. on each trading day. The IFV is calculated by using the prior day’s closing NAV per share of each Fund as a base and updating that value throughout the trading day to reflect changes in the most recently reported trade price for the futures and/or options held by each Fund. Certain Freight Futures brokers provide real time pricing information to the general public either through their websites or through data vendors such as Bloomberg or Reuters. The IFV disseminated during NYSE Arca core trading hours should not be viewed as an actual real time update of the NAV, because the NAV is calculated only once at the end of each trading day based upon the relevant end of day values of each of the Funds’ investments.

 

The IFV is disseminated on a per share basis every 15 seconds during regular NYSE Arca core trading session hours. The customary trading hours of the Freight Futures trading are 3:00 a.m. E.T. to 12:00 p.m. E.T. This means that there is a gap in time at the beginning and/or the end of each day during which the Funds’ shares are traded on the NYSE Arca, but real-time trading prices for contracts are not available. During such gaps in time the IFV will be calculated based on the end of day price of such contracts from the Baltic Exchange’s immediately preceding trading session. In addition, other investments held by the Funds will be valued by the Administrator, using rates and points received from client-approved third party vendors (such as Reuters and WM Company) and advisor or broker-dealer quotes. These investments will not be included in the IFV.

 

The NYSE Arca disseminates the IFV through the facilities of CTA/CQ High Speed Lines. In addition, the IFV is published on the NYSE Arca’s website and is available through on-line information services such as Bloomberg and Reuters.

 

Dissemination of the IFV provides additional information that is not otherwise available to the public and is useful to investors and market professionals in connection with the trading of the Funds’ shares on the NYSE Arca. Investors and market professionals are able throughout the trading day to compare the market price of the Funds’ shares and the IFV. If the market price of the Funds’ shares diverges significantly from the IFV, market professionals will have an incentive to execute arbitrage trades. For example, if the Funds’ shares appear to be trading at a discount compared to the IFV, a market professional could purchase the Funds’ shares on the NYSE Arca and take the opposite position in Freight Futures. Such arbitrage trades can tighten the tracking between the market price of the Funds’ shares and the IFV and thus can be beneficial to all market participants.

 

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Critical Accounting Estimates

 

Preparation of the combined financial statements and related disclosures in accordance with U.S. generally accepted accounting principles requires the application of appropriate accounting rules and guidance, as well as the use of estimates. Each Fund’s application of these policies involves judgments and the use of estimates. Actual results may differ from the estimates used and such differences could be material. The Funds hold a significant portion of their assets in futures contracts and money market funds, which are held at fair value.

 

There were no material estimates, which involve a significant level of estimation uncertainty and had or are reasonably likely to have had a material impact on the Funds’ financial condition, used in the preparation of these combined financial statements.

 

Liquidity and Capital Resources

 

The Funds do not anticipate making use of borrowings or other lines of credit to meet their obligations. The Funds meets their liquidity needs in the normal course of business from the proceeds of the sale of their investments or from the cash, and/or cash equivalents that they hold. The Funds’ liquidity needs include: redeeming their shares, providing margin deposits for existing Benchmark Component Instruments, the purchase of additional Benchmark Component Instruments, and paying expenses.

 

The Funds generate cash primarily from (i) the sale of Creation Baskets and (ii) interest earned on cash, cash equivalents and its investments in collateralizing Treasury Securities, if any. Generally, all of the net assets of the Funds are allocated to trading in Benchmark Component Instruments. Most of the assets of the Funds are held in cash and/or cash equivalents that could or are used as margin or collateral for trading in Benchmark Component Instruments. The percentage that such assets bear to the total net assets will vary from period to period as the market values of the Benchmark Component Instruments change. Interest earned on interest-bearing assets of the Funds are paid to the Funds. BDRY earned $457,674 and $117,420, respectively, in interest income during the three months ended December 31, 2023 and 2022 and $995,384 and $204,840, respectively, in interest income during the six months December 31, 2023. BWET earned $7,475 and $13,881, respectively, in interest income during the three and six months ended December 31, 2023.

 

The investments of the Funds in Benchmark Component Instruments could be subject to periods of illiquidity because of market conditions, regulatory considerations and other reasons. Such conditions could prevent the Funds from promptly liquidating a position in Benchmark Component Instruments. Commodity exchanges may limit fluctuations in certain futures contract prices during a single day by regulations referred to as “daily limits.” During a single day, no futures trades may be executed at prices beyond the daily limit. Once the price of a futures contract has increased or decreased by an amount equal to the daily limit, positions in such futures contracts can neither be taken nor liquidated unless the traders are willing to effect trades at or within the limit. Futures contract prices have occasionally moved to the daily limit for several consecutive days with little or no trading. Such market conditions could prevent the Funds from promptly liquidating their futures positions.

 

Because the Funds trade futures contracts, their capital is at risk due to changes in the value of these contracts (market risk) or the inability of counter-parties to perform under the terms of the contracts (credit risk).

 

Market Risk

 

Trading in Benchmark Component Instruments such as futures contracts will involve the Funds entering into contractual commitments to purchase or sell specific amounts of instruments at a specified date in the future. The gross or face amount of the contracts is expected to significantly exceed the future cash requirements of the Funds as the Funds intend to close out any open positions prior to the contractual expiration date. As a result, the Funds’ market risk is the risk of loss arising from the decline in value of the contracts. The Funds consider the “fair value” of derivative instruments to be the unrealized gain or loss on the contracts. The market risk associated with the settlement of contracts will be limited to the aggregate face amount of the contracts held.

 

The exposure of the Funds to market risk will depend on a number of factors including the markets for the specific instrument, the volatility of freight rates, the liquidity of the instrument-specific market and the relationships among the contracts held by the Funds.

 

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Credit Risk

 

When the Funds enter into Benchmark Component Instruments, they will be exposed to the credit risk that the counterparty will not be able to meet its obligations. For purposes of credit risk, the counterparty for the Benchmark Component Instruments traded on or cleared by the Baltic Exchange and other futures exchanges is the clearinghouse associated with those exchanges. In general, clearinghouses are backed by their members who may be required to share in the financial burden resulting from the nonperformance of one of their members, which should significantly reduce credit risk. There can be no assurance that any counterparty, clearinghouse, or their financial backers will satisfy their obligations to the Funds.

 

The Sponsor will attempt to minimize certain of these market and credit risks by normally:

 

  ● executing and clearing trades with creditworthy counterparties, as determined by the Sponsor;

 

  ● limiting the outstanding amounts due from counterparties of the Funds;

 

  ● not posting margin directly with a counterparty;

 

  ● limiting the amount of margin or premium posted at the FCM; and

 

  ● ensuring that deliverable contracts are not held to such a date when delivery of an underlying asset could be called for.

 

The Commodity Exchange Act (“CEA”) requires all FCMs, such as the Funds’ clearing brokers, to meet and maintain specified fitness and financial requirements, to segregate customer funds from proprietary funds and account separately for all customers’ funds and positions, and to maintain specified books and records open to inspection by the staff of the CFTC. The CFTC has similar authority over introducing brokers, or persons who solicit or accept orders for commodity interest trades but who do not accept margin deposits for the execution of trades. The CEA authorizes the CFTC to regulate trading by FCMs and by their officers and directors, permits the CFTC to require action by exchanges in the event of market emergencies, and establishes an administrative procedure under which customers may institute complaints for damages arising from alleged violations of the CEA. The CEA also gives the states powers to enforce its provisions and the regulations of the CFTC.

 

On November 14, 2013, the CFTC published final regulations that require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures and auditing and examination programs for FCMs. The rules are intended to afford greater assurances to market participants that customer segregated funds and secured amounts are protected, customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which they may choose to do business, FCMs are monitoring and managing risks in a robust manner, the capital and liquidity of FCMs are strengthened to safeguard the continued operations and the auditing and examination programs of the CFTC and the self-regulatory organizations are monitoring the activities of FCMs in a thorough manner

 

Regulatory Environment

 

The regulation of futures markets, futures contracts, and futures exchanges has historically been comprehensive. The CFTC and the exchanges are authorized to take extraordinary actions in the event of a market emergency including, for example, the retroactive implementation of speculative position limits, increased margin requirements, the establishment of daily price limits and the suspension of trading.

 

The regulation of commodity interest transactions in the United States is an evolving area of law and is subject to ongoing modification by governmental and judicial action. Considerable regulatory attention has been focused on non-traditional investment pools that are publicly distributed in the United States. There is a possibility of future regulatory changes within the United States altering, perhaps to a material extent, the nature of an investment in the Funds, or the ability of the Funds to continue to implement their investment strategies. In addition, various national governments outside of the United States have expressed concern regarding the disruptive effects of speculative trading in the commodities markets and the need to regulate the derivatives markets in general. The effect of any future regulatory change on the Funds are impossible to predict but could be substantial and adverse.

 

The CFTC possesses exclusive jurisdiction to regulate the activities of commodity pool operators and commodity trading advisors with respect “commodity interests,” such as futures, swaps and options, and has adopted regulations with respect to the activities of those persons and/or entities. Under the CEA, a registered CPO, such as the Sponsor, is required to make annual filings with the CFTC and NFA describing its organization, capital structure, management and controlling persons. In addition, the CEA authorizes the CFTC to require and review books and records of, and documents prepared by, registered CPOs. Pursuant to this authority, the CFTC requires CPOs to keep accurate, current and orderly records for each pool that they operate. The CFTC may suspend the registration of a commodity pool operator (1) if the CFTC finds that the operator’s trading practices tend to disrupt orderly market conditions, (2) if any controlling person of the operator is subject to an order of the CFTC denying such person trading privileges on any exchange, and (3) in certain other circumstances. Suspension, restriction or termination of the Sponsor’s registration as a commodity pool operator would prevent it, until that registration were to be reinstated, from managing the Funds, and might result in the termination of the Funds if a successor sponsor is not elected pursuant to the Trust Agreement.

 

53

 

 

The Funds’ investors are afforded prescribed rights for reparations under the CEA. Investors may also be able to maintain a private right of action for violations of the CEA. The CFTC has adopted rules implementing the reparation provisions of the CEA, which provide that any person may file a complaint for a reparations award with the CFTC for violation of the CEA against a floor broker or an FCM, introducing broker, commodity trading advisor, CPO, and their respective associated persons.

 

Pursuant to authority in the CEA, the NFA has been formed and registered with the CFTC as a registered futures association. At the present time, the NFA is the only self-regulatory organization for commodity interest professionals, other than futures exchanges. The CFTC has delegated to the NFA responsibility for the registration of CPOs and FCMs and their respective associated persons. The Sponsor is a member of the NFA and, as such, it will be subject to NFA standards relating to fair trade practices, financial condition and consumer protection. The NFA also arbitrates disputes between members and their customers and conducts registration and fitness screening of applicants for membership and audits of its existing members. Neither the Trust nor the Funds are required to become a member of the NFA. 

 

The regulations of the CFTC and the NFA prohibit any representation by a person registered with the CFTC or by any member of the NFA, that registration with the CFTC, or membership in the NFA, in any respect indicates that the CFTC or the NFA has approved or endorsed that person or that person’s trading program or objectives. The registrations and memberships of the parties described in this summary must not be considered as constituting any such approval or endorsement. Likewise, no futures exchange has given or will give any similar approval or endorsement.

 

Futures exchanges in the United States are subject to varying degrees of regulation under the CEA depending on whether such exchange is a designated contract market, exempt board of trade or electronic trading facility. Clearing organizations are also subject to the CEA and the rules and regulations adopted thereunder as administered by the CFTC. The CFTC’s function is to implement the CEA’s objectives of preventing price manipulation and excessive speculation and promoting orderly and efficient commodity interest markets. In addition, the various exchanges and clearing organizations themselves exercise regulatory and supervisory authority over their member firms.

 

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was enacted in response to the economic crisis of 2008 and 2009 and it significantly altered the regulatory regime to which the securities and commodities markets are subject. To date, the CFTC has issued proposed or final versions of almost all of the rules it is required to promulgate under the Dodd-Frank Act. The provisions of the law include the requirement that position limits be established on a wide range of commodity interests, including agricultural, energy, and metal-based commodity futures contracts, options on such futures contracts and cleared and uncleared swaps that are economically equivalent to such futures contracts and options; new registration and recordkeeping requirements for swap market participants; capital and margin requirements for “swap dealers” and “major swap participants,” as determined by the law and applicable regulations; reporting of all swaps transactions to swap data repositories; and the mandatory use of clearinghouse mechanisms for sufficiently standardized swap transactions that were historically entered into in the over-the-counter market, but are now designated as subject to the clearing requirement; and margin requirements for over-the counter swaps that are not subject to the clearing requirements.

 

The Dodd-Frank Act was intended to reduce systemic risks that may have contributed to the 2008/2009 financial crisis. Since the first draft of what became the Dodd-Frank Act, supporters and opponents have debated the scope of the legislation. As the administrations of the U.S. change, the interpretation and implementation will change with them. Nevertheless, regulatory reform of any kind may have a significant impact on U.S. regulated entities.

 

Current rules and regulations under the Dodd-Frank Act require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures and auditing and examination programs for FCMs. The rules are intended to afford greater assurances to market participants that customer segregated funds and secured amounts are protected, customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which they may choose to do business, FCMs are monitoring and managing risks in a robust manner, the capital and liquidity of FCMs are strengthened to safeguard the continued operations and the auditing and examination programs of the CFTC and the self-regulatory organizations are monitoring the activities of FCMs in a thorough manner.

 

Regulatory bodies outside the U.S. have also passed or proposed, or may propose in the future, legislation similar to that proposed by the Dodd-Frank Act or other legislation containing other restrictions that could adversely impact the liquidity of and increase costs of participating in the commodities markets. For example, the European Union Markets in Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation (EU) No 600/2014) (together “MiFID II”), which has applied since January 3, 2018, governs the provision of investment services and activities in relation to, as well as the organized trading of, financial instruments such as shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires EU Member States to apply position limits to the size of a net position which a person can hold at any time in commodity derivatives traded on EU trading venues and in “economically equivalent” over-the-counter (“OTC”) contracts. By way of further example, the European Market Infrastructure Regulation (Regulation (EU) No 648/2012, as amended) (“EMIR”) introduced certain requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared subject to the clearing obligation; (ii) risk mitigation techniques in respect of un-cleared OTC derivative contracts, including the mandatory margining of un-cleared OTC derivative contracts; and (iii) reporting and recordkeeping requirements in respect of all derivatives contracts. In the event that the requirements under EMIR and MiFID II apply, these are expected to increase the cost of transacting derivatives.

 

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In addition, considerable regulatory attention has been focused on non-traditional publicly distributed investment pools such as the Funds. Furthermore, various national governments have expressed concern regarding the disruptive effects of speculative trading in certain commodity markets and the need to regulate the derivatives markets in general. The effect of any future regulatory change on the Funds is impossible to predict, but could be substantial and adverse.

 

Off Balance Sheet Financing

 

As of December 31, 2023, neither the Trust nor the Funds have any loan guarantees, credit support or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions relating to certain risks service providers undertake in performing services which are in the best interests of the Funds. While the exposure of the Funds under these indemnification provisions cannot be estimated, they are not expected to have a material impact on the financial position of the Funds.

 

Redemption Basket Obligation

 

Other than as necessary to meet the investment objective of the Funds and pay the contractual obligations described below, the Funds will require liquidity to redeem Redemption Baskets. The Funds intend to satisfy this obligation through the transfer of cash of the Funds (generated, if necessary, through the sale of money market funds invested in Treasury obligations) in an amount proportionate to the number of Shares being redeemed.

 

Contractual Obligations

 

The primary contractual obligations of the Funds will be with the Sponsor and certain other service providers.

 

Management and CTA Fees

 

BDRY and BWET each pay the Sponsor a management fee (the “Sponsor Fee”) in consideration of the Sponsor’s advisory services to the Funds. Additionally, BDRY and BWET each pay Breakwave a license and service fee (the “CTA Fee”).

 

BDRY pays the Sponsor Fee, monthly in arrears, in an amount equal to the greater of 0.15% per year of BDRY’s average daily net assets; or $125,000. BDRY’s Sponsor Fee is paid in consideration of the Sponsor’s management services to BDRY. BDRY also pays Breakwave the CTA Fee monthly in arrears, for the use of BDRY’s Benchmark Portfolio in an amount equal to 1.45% per annum of BDRY’s average daily net assets.

 

Breakwave has agreed to waive its CTA Fee and the Sponsor has agreed to correspondingly assume the remaining expenses of BDRY so that BDRY’s expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, of the value of BDRY’s average daily net assets (the “BDRY Expense Cap”). The assumption of expenses and waiver of BDRY’s CTA Fee are contractual on the part of the Sponsor and Breakwave, respectively, through through December 31, 2024. If after that date, the Sponsor and/or Breakwave no longer assumed expenses or waived the CTA Fee, respectively, BDRY could be adversely impacted, including in its ability to achieve its investment objective.

 

The assumption of expenses by the Sponsor for BDRY, pursuant to the BDRY Expense Cap, amounted to $-0- and $-0- for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $-0- for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. The waiver of Breakwave’s CTA fees, pursuant to the undertaking, amounted to $-0= and $38,707 for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $66,332 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BDRY currently accrues its daily expenses based upon established individual expense amounts or the BDRY Expense Cap, whichever aggregate amount is less. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Fund. BDRY’s total expenses, prior to the assumption and waiver of expenses, amounted to $650,217 and $505,629 for the three months ended December 31, 2023 and 2022, respectively, and $1,351,888 and $976,903, for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations.

 

BWET pays the Sponsor Fee, monthly in arrears, in an amount equal to the greater of 0.30% per year of BWET’s average daily net assets, or $50,000. BWET’s Sponsor Fee is paid in consideration of the Sponsor’s management services to BWET. BWET also pays Breakwave the CTA Fee monthly in arrears, for the use of BWET’s Benchmark Portfolio in an amount equal to 1.45% per annum of BWET’s average daily net assets.

 

Breakwave has agreed to waive its CTA Fee and the Sponsor has agreed to correspondingly assume the remaining expenses of BWET so that BWET’s expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, of the value of BWET’s average daily net assets (the “BWET Expense Cap”). The assumption of expenses and waiver of BWET’s CTA Fee are contractual on the part of the Sponsor and Breakwave, respectively, through December 31, 2024. If after that date, the Sponsor and/or Breakwave no longer assumed expenses or waived the CTA Fee, respectively, BWET could be adversely impacted, including in its ability to achieve its investment objective.

 

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The assumption of expenses by the Sponsor for BWET, pursuant to the BWET Expense Cap, amounted to $74,622 and $160,731 for the three and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations. The waiver of Breakwave’s CTA fees, pursuant to the undertaking, amounted to $7,347 and $20,130 for the three and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations. BWET currently accrues its daily expenses based upon established individual expense category amounts or the BWET Expense Cap, whichever aggregate amount is less. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Fund. BWET’s total expenses, prior to the assumption and waiver of expenses, amounted to $108,527 and $253,668 for the three and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations.

 

Each Fund’s ongoing fees, costs and expenses of its operation, not subject to the applicable Expense Cap include brokerage and other fees and commissions incurred in connection with the trading activities of the Fund, and extraordinary expenses (including, but not limited to, legal claims and liabilities and litigation costs and any indemnification related thereto). Expenses subject to an Expense Cap include (i) expenses incurred in connection with registering additional Shares of a Fund or offering Shares of a Fund; (ii) the routine expenses associated with the preparation and, if required, the printing and mailing of monthly, quarterly, annual and other reports required by applicable U.S. federal and state regulatory authorities, Trust meetings and preparing, printing and mailing proxy statements to Shareholders; (iii) the routine services of the Trustee, legal counsel and independent accountants; (iv) routine accounting, bookkeeping, custodial and transfer agency services, whether performed by an outside service provider or by affiliates of the Sponsor; (v) postage and insurance; (vi) costs and expenses associated with client relations and services; (vii) costs of preparation of all federal, state, local and foreign tax returns and any taxes payable on the income, assets or operations of a Fund.

 

While the Sponsor has agreed to pay registration fees to the SEC and any other regulatory agency in connection with the initial offering and sale of the Shares offered through each Fund’s prospectus, and the legal, printing, accounting and other expenses associated with such registration, each Funds will be responsible for any registration fees and related expenses incurred in connection with any future offer and sale of Shares of the Fund in excess of those offered through its initial prospectus.

 

Any general expenses of the Trust will be allocated among the Funds and any other future series of the Trust as determined by the Sponsor in its sole and absolute discretion. The Trust is also responsible for extraordinary expenses, including, but not limited to, legal claims and liabilities and litigation costs and any indemnification related thereto. The Trust and/or the Sponsor may be required to indemnify the Trustee, Distributor or Administrator under certain circumstances.

 

The parties cannot anticipate the amount of payments that will be required under these arrangements for future periods as the NAV and trading levels to meet investment objectives for the Funds will not be known until a future date. These agreements are effective for a specific term agreed upon by the parties with an option to renew, or, in some cases, are in effect for the duration of a Fund’s existence. The parties may terminate these agreements earlier for certain reasons listed in the agreements. 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable to Smaller Reporting Companies.

 

Item 4. Controls and Procedures

 

Disclosure Controls and Procedures

 

The Trust and the Funds maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in the Trust’s periodic reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time period specified in the SEC’s rules and forms.

 

The duly appointed officers of the Sponsor, including its principal executive officer and principal financial officer, have evaluated the effectiveness of the Trust’s and the Fund’s disclosure controls and procedures and have concluded that the disclosure controls and procedures of the Trust and the Fund have been effective as of the end of the period covered by this quarterly report on Form 10-Q.

 

Change in Internal Control Over Financial Reporting

 

There were no changes in the Trust’s or the Fund’s internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Trust’s or the Fund’s internal control over financial reporting.

 

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Part II. OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

Although the Funds may, from time to time, be involved in litigation arising out of their operations in the normal course of business or otherwise, the Funds are currently not a party to any pending legal proceedings.

 

Item 1A. Risk Factors

 

Not applicable to Smaller Reporting Companies.

 

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

 

  (a) None

 

  (b)

The original registration statement on Form S-1 registering 10,000,000 common units, or “Shares,” of the Breakwave Dry Bulk Shipping ETF (File No. 333-218453) was declared effective on March 9, 2018. On December 31, 2023, 5,250,040 shares of the Fund were outstanding for a market capitalization of $60,690,462. The offering proceeds were invested in futures contracts, or cash and cash equivalents in accordance with the Fund’s investment objective stated in the prospectus.

 

The registration statement on Form S-1 registering an indeterminate amount of common units of beneficial interest, or “Shares,” of the Breakwave Tanker Shipping ETF (File No. 333-266945) was declared effective on April 28, 2023. On December 31, 2023, 125,100 Shares of the Fund were outstanding for a market capitalization of $2,020,365. The offering proceeds were invested in futures contracts, or cash and cash equivalents in accordance with the Fund’s investment objective stated in the prospectus.

 

BDRY does not purchase shares directly from its shareholders. In connection with redemptions of baskets held by an Authorized Participant, BDRY redeemed two hundred seventy four (274) baskets (each comprising 25,000 shares) during the three months ended December 31, 2023 at an average price per share of $7.32. The following table provides information about BDRY’s redemptions by Authorized Participants during the three months ended December 31, 2023:

 

Calendar Month  Number
of Shares
Redeemed		   Average
Price
Paid per
Share		 
October 2023   2,050,000   $5.62 
November 2023   2,250,000    6.75 
December 2023   2,550,000    9.20 
Total   6,850,000   $7.32 

 

BWET does not purchase shares directly from its shareholders. In connection with redemptions of baskets held by an Authorized Participant, BWET redeemed no (-0-) baskets (each comprising 25,000 shares) during the three months ended December 31, 2023. The following table provides information about BWET’s redemptions by Authorized Participants during the three months ended December 31, 2023:

 

Calendar Month   Number
of Shares
Redeemed		    Average
Price
Paid per
Share  		 
October 2023   -   $- 
November 2023   -    - 
December 2023   -    - 
Total   -   $- 

 

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Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information

 

(a) None.

 

(b) Not Applicable.

 

(c)None of the Sponsor’s officers have adopted, modified or terminated plans under either a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933) for the Trust or the Funds for the three months ended December 31, 2023.

 

Item 6. Exhibits

 

The following exhibits are filed as part of this report as required under Item 601 of Regulation S-K:

 

31.1   Certification by the Principal Executive Officer of the Registrant pursuant to Rules 13a-14 and 15d-14 of the Exchange Act. (1)
     
31.2   Certification by the Principal Financial Officer of the Registrant pursuant to Rules 13a-14 and 15d-14 of the Exchange Act. (1)
     
32.1   Certification by the Principal Executive Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (1)
     
32.2   Certification by the Principal Financial Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (1)
     
101.INS   Inline XBRL Instance Document.
     
101.SCH   Inline XBRL Taxonomy Extension Schema
     
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase
     
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase
     
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase
     
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase
     
104   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

(1) Filed Herewith.

 

58

 

 

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, thereunto duly authorized.

 

Amplify Commodity Trust (Registrant)

 

By: Amplify Investments LLC  
  its Sponsor  
     
By: /s/ Christian Magoon  
  Name:  Christian Magoon  
  Title: Principal Executive Officer  
     
By: /s/ Bradley H. Bailey  
  Name: Bradley H. Bailey  
  Title: Principal Financial Officer  

 

Date: February 20, 2024

 

 

58

 

1009265 Included in Investments in securities in the Combined Statements of Assets and Liabilities. Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities. Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities. 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Exhibit 31.1

 

Certification of Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Christian Magoon, certify that:

 

1.I have reviewed this Quarterly Report on Form 10-Q of Amplify Commodity Trust;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

 

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other(s) certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: February 20, 2024 By: /s/ Christian Magoon
  Name:  Christian Magoon
  Title: Principal Executive Officer
    Amplify Commodity Trust

Exhibit 31.2

 

Certification of Principal Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Bradley H. Bailey, certify that:

 

1.I have reviewed this Quarterly Report on Form 10-Q of Amplify Commodity Trust;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

 

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: February 20, 2024 By: /s/ Bradley H. Bailey
  Name:  Bradley H. Bailey
  Title: Principal Financial Officer
    Amplify Commodity Trust

 

 

Exhibit 32.1

 

Certification of Principal Executive Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

In connection with the Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 (the “Report”) of Amplify Commodity Trust (the “Registrant”) and its Fund, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Christian Magoon, the Principal Executive Officer of the Registrant, hereby certify, to the best of my knowledge, that:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date: February 20, 2024 By: /s/ Christian Magoon
  Name:  Christian Magoon
  Title: Principal Executive Officer
    Amplify Commodity Trust

 

 

Exhibit 32.2

 

Certification of Principal Financial Officer

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

In connection with the Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 (the “Report”) of Amplify Commodity Trust (the “Registrant”) and its Fund, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Bradley H. Bailey, the Principal Financial Officer of the Registrant, hereby certify, to the best of my knowledge, that:

 

  (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

Date: February 20, 2024 By: /s/ Bradley H. Bailey
  Name:  Bradley H. Bailey
  Title: Principal Financial Officer
    Amplify Commodity Trust

v3.24.0.1
Document And Entity Information - shares
 6 Months Ended
Dec. 31, 2023
Feb. 01, 2024
Document Information Line Items    
Entity Registrant Name Amplify Commodity Trust  
Document Type 10-Q  
Current Fiscal Year End Date --06-30  
Amendment Flag false  
Entity Central Index Key 0001610940  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Document Period End Date Dec. 31, 2023  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 001-36851  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-4793446  
Entity Address, Address Line One 3333 Warrenville Road  
Entity Address, Address Line Two Suite 350  
Entity Address, City or Town Lisle  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60532  
City Area Code 855  
Local Phone Number 267-3837  
Entity Information, Former Legal or Registered Name ETF Managers Group Commodity Trust I  
Entity Interactive Data Current Yes  
Former Address    
Document Information Line Items    
Entity Address, Address Line One 30 Maple Street  
Entity Address, City or Town Summit  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07901  
Shares of Breakwave Dry Bulk Shipping ETF    
Document Information Line Items    
Trading Symbol BDRY  
Title of 12(b) Security Shares of Breakwave Dry Bulk Shipping ETF  
Security Exchange Name NYSEArca  
Shares of Breakwave Tanker Shipping ETF    
Document Information Line Items    
Trading Symbol BWET  
Title of 12(b) Security Shares of Breakwave Tanker Shipping ETF  
Security Exchange Name NYSEArca  
BDRY    
Document Information Line Items    
Entity Common Stock, Shares Outstanding   4,050,040
BWET    
Document Information Line Items    
Entity Common Stock, Shares Outstanding   825,100
v3.24.0.1
Combined Statements of Assets and Liabilities (Unaudited) - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Assets    
Investment in securities, at fair value $ 12,301,378 $ 40,066,908
Segregated cash held by broker 27,826,691 38,203,690
Receivable on open futures contracts 23,286,315 825,287
Interest receivable 70,024 147,795
Total assets 63,484,408 79,243,680
Liabilities    
Payable on open futures contracts 83,410 13,669,745
Other accrued expenses 88,976 46,453
Due to Sponsor 179,478 164,831
Total liabilities 351,864 13,881,029
Net Assets 63,132,544 65,362,651
BREAKWAVE DRY BULK SHIPPING ETF    
Assets    
Investment in securities, at fair value 11,704,549 39,591,860
Segregated cash held by broker 26,325,972 35,323,736
Receivable on open futures contracts 23,286,315
Interest receivable 67,337 145,794
Total assets 61,384,173 75,061,390
Liabilities    
Payable on open futures contracts 13,669,745
Other accrued expenses 85,462 41,691
Due to Sponsor 173,374 156,055
Total liabilities 258,836 13,867,491
Net Assets $ 61,125,337 $ 61,193,899
Shares outstanding (unlimited authorized) (in Shares) 5,250,040 11,075,040
Net asset value per share (in Dollars per share) $ 11.64 $ 5.53
Market value per share (in Dollars per share) $ 11.56 $ 5.55
BREAKWAVE TANKER SHIPPING ETF    
Assets    
Investment in securities, at fair value $ 596,829 $ 475,048
Segregated cash held by broker 1,500,719 2,879,954
Receivable on open futures contracts 825,287
Interest receivable 2,687 2,001
Total assets 2,100,235 4,182,290
Liabilities    
Payable on open futures contracts 83,410
Other accrued expenses 3,514 4,762
Due to Sponsor 6,104 8,776
Total liabilities 93,028 13,538
Net Assets $ 2,007,207 $ 4,168,752
Shares outstanding (unlimited authorized) (in Shares) 125,100 200,100
Net asset value per share (in Dollars per share) $ 16.04 $ 20.83
Market value per share (in Dollars per share) $ 16.15 $ 20.88
v3.24.0.1
Combined Statements of Assets and Liabilities (Unaudited) (Parentheticals) - USD ($)
Dec. 31, 2023
Jun. 30, 2023
BREAKWAVE DRY BULK SHIPPING ETF    
Securities, at fair value $ 11,704,549 $ 39,591,860
BREAKWAVE TANKER SHIPPING ETF    
Securities, at fair value $ 596,829 $ 475,048
v3.24.0.1
Combined Schedules of Investments (Unaudited) - USD ($)
Dec. 31, 2023
Jun. 30, 2023
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
TOTAL NET ASSETS $ 63,132,544 $ 65,362,651
BREAKWAVE DRY BULK SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Total Investments 11,704,549 39,591,860
TOTAL NET ASSETS 61,125,337 61,193,899
BREAKWAVE TANKER SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Total Investments 596,829 475,048
TOTAL NET ASSETS 2,007,207 4,168,752
Money Market Funds [Member]    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
TOTAL MONEY MARKET FUNDS 12,301,378 40,066,908
Money Market Funds [Member] | First American US Treasury Obligations Fund, Class X [Member]    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
First American US Treasury Obligations Fund, Class X, 12,301,378 [1] 40,066,908 [2]
Money Market Funds [Member] | BREAKWAVE DRY BULK SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
TOTAL MONEY MARKET FUNDS 11,704,549 39,591,860
Money Market Funds [Member] | BREAKWAVE DRY BULK SHIPPING ETF | First American US Treasury Obligations Fund, Class X [Member]    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
First American US Treasury Obligations Fund, Class X, 11,704,549 [1] 39,591,860 [2]
Money Market Funds [Member] | BREAKWAVE TANKER SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
TOTAL MONEY MARKET FUNDS 596,829 475,048
Money Market Funds [Member] | BREAKWAVE TANKER SHIPPING ETF | First American US Treasury Obligations Fund, Class X [Member]    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
First American US Treasury Obligations Fund, Class X, 596,829 [1] 475,048 [2]
Investments [Member]    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Total Investments 12,301,378 40,066,908
Investments [Member] | BREAKWAVE DRY BULK SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Total Investments 11,704,549 39,591,860
Investments [Member] | BREAKWAVE TANKER SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Total Investments 596,829 475,048
Other Assets in Excess of Liabilities [Member]    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Other Assets in Excess of Liabilities 50,831,166 [3] 25,295,743 [4]
Other Assets in Excess of Liabilities [Member] | BREAKWAVE DRY BULK SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Other Assets in Excess of Liabilities 49,420,788 [3] 21,602,039 [4]
Other Assets in Excess of Liabilities [Member] | BREAKWAVE TANKER SHIPPING ETF    
MONEY MARKET FUNDS - 19.1% and 29.7%, respectively    
Other Assets in Excess of Liabilities $ 1,410,378 [3] $ 3,693,704 [4]
[1] Annualized seven-day yield as of December 31, 2023.
[2] Annualized seven-day yield as of June 30, 2023.
[3] $26,325,972 and $1,500,719, respectively, of cash is pledged as collateral for futures contracts.
[4] $35,323,736 and $2,879,954, respectively, of cash is pledged as collateral for futures contracts.
v3.24.0.1
Combined Schedules of Investments (Unaudited) (Parentheticals) - USD ($)
Dec. 31, 2023
Jun. 30, 2023
BREAKWAVE DRY BULK SHIPPING ETF    
Net Assets Percentage 100.00% 100.00%
BREAKWAVE TANKER SHIPPING ETF    
Net Assets Percentage 100.00% 100.00%
Money Market Funds [Member] | BREAKWAVE DRY BULK SHIPPING ETF    
American US Treasury Obligations Fund, Percentage 19.10% 64.70%
Money Market Funds, Cost (in Dollars) $ 11,704,549 $ 39,591,860
Money Market Funds [Member] | BREAKWAVE DRY BULK SHIPPING ETF | First American US Treasury Obligations Fund, Class X [Member]    
American US Treasury Obligations Fund, Par Value Percentage 5.28% 5.04%
First American US Treasury Obligations Fund, Shares (in Shares) 11,704,549  
Money Market Funds [Member] | BREAKWAVE TANKER SHIPPING ETF    
American US Treasury Obligations Fund, Percentage 29.70% 11.40%
Money Market Funds, Cost (in Dollars) $ 596,829 $ 475,048
Money Market Funds [Member] | BREAKWAVE TANKER SHIPPING ETF | First American US Treasury Obligations Fund, Class X [Member]    
American US Treasury Obligations Fund, Par Value Percentage 5.28% 5.04%
First American US Treasury Obligations Fund, Shares (in Shares) 596,829  
Investments [Member] | BREAKWAVE DRY BULK SHIPPING ETF    
Investment Cost (in Dollars) $ 11,704,549 $ 39,591,860
Investment Percentage 19.10% 64.70%
Investments [Member] | BREAKWAVE TANKER SHIPPING ETF    
Investment Cost (in Dollars) $ 596,829 $ 475,048
Investment Percentage 29.70% 11.40%
Other Assets in Excess of Liabilities [Member] | BREAKWAVE DRY BULK SHIPPING ETF    
Assets in Excess of Liabilities Percentage 80.90% 35.30%
Other Assets in Excess of Liabilities [Member] | BREAKWAVE TANKER SHIPPING ETF    
Assets in Excess of Liabilities Percentage 70.30% 88.60%
v3.24.0.1
Schedule of Futures Contracts - Futures Contracts [Member] - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member]    
Unrealized Appreciation/(Depreciation) $ 23,286,315 $ (13,669,745)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 8,318,050  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 2,904,850  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 3,504,850  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 2,561,125  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 2,071,625  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 2,505,625  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 499,960  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 401,290  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 518,940  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (2,288,410)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (1,668,410)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (1,059,570)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (3,404,475)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (2,248,325)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (1,356,325)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (732,250)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (547,000)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   (364,980)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member]    
Unrealized Appreciation/(Depreciation)
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 23,286,315 (13,669,745)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring January 31, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 8,318,050  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring February 29, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 2,904,850  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring March 28, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 3,504,850  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring January 31, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 2,561,125  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring February 29, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 2,071,625  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring March 28, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 2,505,625  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring January 31, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 499,960  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring February 29, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 401,290  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring March 28, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 518,940  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring July 28, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (2,288,410)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring August 25, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (1,668,410)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring September 29, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (1,059,570)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring July 28, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (3,404,475)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring August 25, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (2,248,325)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring September 29, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (1,356,325)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring July 28, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (732,250)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring August 25, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (547,000)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring September 29, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   (364,980)
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I (83,410) 825,287
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring January 31, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I (27,700)  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring February 29, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I (31,277)  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring March 28, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I (33,433)  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring January 31, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 5,000  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring February 29, 2024 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I 4,000  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring July 28, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   300,377
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring August 25, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   233,777
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring September 29, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   239,177
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring July 28, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   19,567
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring August 25, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   19,121
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring September 29, 2023 [Member]    
ETF MANAGERS GROUP COMMODITY TRUST I   13,268
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member]    
Unrealized Appreciation/(Depreciation) (83,410) 825,287
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation) (27,700)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation) (31,277)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation) (33,433)  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation) 5,000  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation) $ 4,000  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   300,377
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   233,777
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   239,177
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   19,567
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   19,121
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation)   $ 13,268
v3.24.0.1
Schedule of Futures Contracts (Parentheticals) - Futures Contracts [Member] - USD ($)
Dec. 31, 2023
Jun. 30, 2023
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value $ 14,275,800  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 14,275,800  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 8,862,600  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 8,862,600  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 9,462,600  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 9,462,600  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 7,868,840  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 7,868,840  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 7,378,500  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 7,378,500  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 7,812,500  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 7,812,500  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 1,890,460  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 1,890,460  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 1,791,790  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 1,791,790  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 1,909,440  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 1,909,440  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   $ 9,552,340
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   9,552,340
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   10,172,340
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   10,172,340
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   10,781,180
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   10,781,180
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   7,034,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   7,034,400
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   8,208,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   8,208,800
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   9,104,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   9,104,800
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,752,750
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,752,750
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,938,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,938,000
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   2,120,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   2,120,000
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 622,300  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 622,300  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 618,723  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 618,723  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 616,567  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 616,567  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 97,000  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 97,000  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 180,000  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 180,000  
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,296,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,296,000
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,229,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,229,400
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,234,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,234,800
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   95,450
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   95,450
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   179,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   179,400
Unrealized Appreciation/ (Depreciation) [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   89,150
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   89,150
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 14,275,800  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 14,275,800  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 8,862,600  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 8,862,600  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 9,462,600  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 9,462,600  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 7,868,840  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 7,868,840  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 7,378,500  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 7,378,500  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 7,812,500  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 7,812,500  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 1,890,460  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 1,890,460  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 1,791,790  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 1,791,790  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 1,909,440  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 1,909,440  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   9,552,340
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   9,552,340
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   10,172,340
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   10,172,340
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   10,781,180
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   10,781,180
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   7,034,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   7,034,400
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   8,208,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   8,208,800
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   9,104,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   9,104,800
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,752,750
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,752,750
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,938,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,938,000
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   2,120,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   2,120,000
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 622,300  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 622,300  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 618,723  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 618,723  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 616,567  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 616,567  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 97,000  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 97,000  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 180,000  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 180,000  
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,296,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,296,000
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,229,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,229,400
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,234,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,234,800
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   95,450
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   95,450
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   179,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   179,400
ETF MANAGERS GROUP COMMODITY TRUST I | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   89,150
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   89,150
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   9,552,340
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   9,552,340
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   10,172,340
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   10,172,340
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Capesize Time Charter Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   10,781,180
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   10,781,180
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   7,034,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   7,034,400
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   8,208,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   8,208,800
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Panamax T/C Average Shipping Route Index Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   9,104,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   9,104,800
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,752,750
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,752,750
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,938,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,938,000
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Baltic Exchange Supramax T/C Average Shipping Route Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   2,120,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   2,120,000
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 622,300  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 622,300  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 618,723  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 618,723  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring March 28, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 616,567  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 616,567  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring January 31, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 97,000  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value 97,000  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring February 29, 2024 [Member]    
Unrealized Appreciation/(Depreciation), Market Value 180,000  
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value $ 180,000  
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,296,000
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,296,000
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,229,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,229,400
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route Middle East Gulf to China Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   1,234,800
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   1,234,800
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring July 28, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   95,450
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   95,450
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring August 25, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   179,400
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   179,400
Unrealized Appreciation/ (Depreciation) One [Member] | Breakwave Tanker Shipping ETF [Member] | Baltic Freight Route West Africa to UK Continent Expiring September 29, 2023 [Member]    
Unrealized Appreciation/(Depreciation), Market Value   89,150
ETF MANAGERS GROUP COMMODITY TRUST I, Market Value   $ 89,150
v3.24.0.1
Combined Statements of Operations (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Investment Income        
Interest $ 465,149 $ 117,420 $ 1,009,265 $ 204,840
Expenses        
Interest expense     1,561
Expenses        
Sponsor fee 43,955 31,508 87,959 63,016
CTA fee 222,609 134,383 473,678 272,120
Audit fees 32,977 21,677 70,189 43,354
Tax preparation fees 55,886 55,453 118,896 107,179
Admin/accounting/custodian/transfer agent fees 31,596 16,637 63,229 33,274
Legal fees 22,608 11,343 45,240 22,686
Chief Compliance Officer fees 12,560 6,301 25,136 12,602
Principal Financial Officer fees 12,560 6,301 25,136 12,602
Regulatory reporting fees 12,560 6,301 25,136 12,602
Brokerage commissions 173,141 142,544 380,943 252,166
Distribution fees 7,871 3,959 15,767 7,918
NJ Filing fees 62,582 26,163 135,870 50,110
Share Registration fees 8,163   8,163  
Insurance expense 7,534 3,781 15,080 7,562
Listing and calculation agent fees 4,008 2,320 8,025 4,639
Marketing expenses 6,055 9,075 18,016 18,149
Other expenses 761 3,781 3,720 7,562
Website Support and Marketing Materials 7,791 2,647 15,582 5,294
Printing and Postage 4,905 4,033 10,057 7,385
Wholesale support fees 28,622 17,422 59,734 35,122
Total Expenses 758,744 505,629 1,605,556 976,903
Less: Waiver of CTA fee (7,347) (38,707) (20,130) (66,332)
Less: Expenses absorbed by Sponsor (74,622) (160,731)
Net Expenses 676,775 466,922 1,424,695 910,571
Net Investment Income (Loss) (211,626) (349,502) (415,430) (705,731)
Net Realized Gain (Loss) on        
Investments and futures contracts 27,825,412 (2,935,993) 9,607,772 (31,400,798)
Change in Unrealized Gain (Loss) on        
Investments and futures contracts 17,176,027 7,140,215 36,016,062 13,609,790
Net realized and unrealized gain (loss) 45,001,439 4,204,222 45,623,834 (17,791,008)
Net income (loss) 44,789,813 3,854,720 45,208,404 (18,496,739)
BREAKWAVE DRY BULK SHIPPING ETF        
Investment Income        
Interest 457,674 117,420 995,384 204,840
Expenses        
Interest expense     1,561
Expenses        
Sponsor fee 31,396 31,508 62,826 63,016
CTA fee 215,262 134,383 453,548 272,120
Audit fees 21,537 21,677 41,374 43,354
Tax preparation fees 55,257 55,453 110,684 107,179
Admin/accounting/custodian/transfer agent fees 16,576 16,637 33,173 33,274
Legal fees 11,304 11,343 22,620 22,686
Chief Compliance Officer fees 6,280 6,301 12,568 12,602
Principal Financial Officer fees 6,280 6,301 12,568 12,602
Regulatory reporting fees 6,280 6,301 12,568 12,602
Brokerage commissions 164,318 142,544 356,616 252,166
Distribution fees 3,944 3,959 7,893 7,918
NJ Filing fees 62,582 26,163 125,711 50,110
Share Registration fees 7,184   7,184  
Insurance expense 3,767 3,781 7,542 7,562
Listing and calculation agent fees 2,312 2,320 4,631 4,639
Marketing expenses 2,288 9,075 10,478 18,149
Other expenses 629 3,781 1,691 7,562
Website Support and Marketing Materials 6,535 2,647 13,070 5,294
Printing and Postage 2,392 4,033 5,031 7,385
Wholesale support fees 24,094 17,422 50,112 35,122
Total Expenses 650,217 505,629 1,351,888 976,903
Less: Waiver of CTA fee (38,707) (66,332)
Less: Expenses absorbed by Sponsor
Net Expenses 650,217 466,922 1,351,888 910,571
Net Investment Income (Loss) (192,543) (349,502) (356,504) (705,731)
Net Realized Gain (Loss) on        
Investments and futures contracts 27,728,859 (2,935,993) 9,477,594 (31,400,798)
Change in Unrealized Gain (Loss) on        
Investments and futures contracts 17,188,035 7,140,215 36,924,759 13,609,790
Net realized and unrealized gain (loss) 44,916,894 4,204,222 46,402,353 (17,791,008)
Net income (loss) 44,724,351 3,854,720 46,045,849 (18,496,739)
BREAKWAVE TANKER SHIPPING ETF        
Investment Income        
Interest 7,475 13,881
Expenses        
Interest expense    
Expenses        
Sponsor fee 12,559 25,133
CTA fee 7,347 20,130
Audit fees 11,440 28,815
Tax preparation fees 629 8,212
Admin/accounting/custodian/transfer agent fees 15,020 30,056
Legal fees 11,304 22,620
Chief Compliance Officer fees 6,280 12,568
Principal Financial Officer fees 6,280 12,568
Regulatory reporting fees 6,280 12,568
Brokerage commissions 8,823 24,327
Distribution fees 3,927 7,874
NJ Filing fees   10,159
Share Registration fees 979   979  
Insurance expense 3,767 7,538
Listing and calculation agent fees 1,696 3,394
Marketing expenses 3,767 7,538
Other expenses 132 2,029
Website Support and Marketing Materials 1,256 2,512
Printing and Postage 2,513 5,026
Wholesale support fees 4,528 9,622
Total Expenses 108,527 253,668
Less: Waiver of CTA fee (7,347) (20,130)
Less: Expenses absorbed by Sponsor (74,622) (160,731)
Net Expenses 26,558 72,807
Net Investment Income (Loss) (19,083) (58,926)
Net Realized Gain (Loss) on        
Investments and futures contracts 96,553 130,178
Change in Unrealized Gain (Loss) on        
Investments and futures contracts (12,008) (908,697)
Net realized and unrealized gain (loss) 84,545 (778,519)
Net income (loss) $ 65,462 $ (837,445)
v3.24.0.1
Combined Statements of Changes in Net Assets (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Net Assets at Beginning of Period $ 67,968,845 $ 35,203,185 $ 65,362,651 $ 46,487,168
Increase (decrease) in Net Assets from share transactions        
Addition of shares 537,255 11,574,875 14,100,573 35,223,901
Redemption of shares (50,163,369) (13,796,285) (61,539,084) (26,377,835)
Net Increase (decrease) in Net Assets from share transactions (49,626,114) (2,221,410) (47,438,511) 8,846,066
Increase (decrease) in Net Assets from operations        
Net investment income (loss) (211,626) (349,502) (415,430) (705,731)
Net realized gain (loss) 27,825,412 (2,935,993) 9,607,772 (31,400,798)
Change in net unrealized gain (loss) 17,176,027 7,140,215 36,016,062 13,609,790
Net increase (decrease) in Net Assets from operations 44,789,813 3,854,720 45,208,404 (18,496,739)
Net Assets at End of Period 63,132,544 36,836,495 63,132,544 36,836,495
BREAKWAVE DRY BULK SHIPPING ETF        
Net Assets at Beginning of Period 66,419,210 35,203,185 61,193,899 46,487,168
Increase (decrease) in Net Assets from share transactions        
Addition of shares 145,145 11,574,875 13,708,463 35,223,901
Redemption of shares (50,163,369) (13,796,285) (59,822,874) (26,377,835)
Net Increase (decrease) in Net Assets from share transactions (50,018,224) (2,221,410) (46,114,411) 8,846,066
Increase (decrease) in Net Assets from operations        
Net investment income (loss) (192,543) (349,502) (356,504) (705,731)
Net realized gain (loss) 27,728,859 (2,935,993) 9,477,594 (31,400,798)
Change in net unrealized gain (loss) 17,188,035 7,140,215 36,924,759 13,609,790
Net increase (decrease) in Net Assets from operations 44,724,351 3,854,720 46,045,849 (18,496,739)
Net Assets at End of Period 61,125,337 36,836,495 61,125,337 36,836,495
BREAKWAVE TANKER SHIPPING ETF        
Net Assets at Beginning of Period 1,549,635 4,168,752  
Increase (decrease) in Net Assets from share transactions        
Addition of shares 392,110 392,110  
Redemption of shares (1,716,210)  
Net Increase (decrease) in Net Assets from share transactions 392,110 (1,324,100)  
Increase (decrease) in Net Assets from operations        
Net investment income (loss) (19,083) (58,926)  
Net realized gain (loss) 96,553 130,178  
Change in net unrealized gain (loss) (12,008) (908,697)  
Net increase (decrease) in Net Assets from operations 65,462 (837,445)  
Net Assets at End of Period $ 2,007,207 $ 2,007,207
v3.24.0.1
Combined Statements of Changes in Net Assets (Unaudited) (Parentheticals) - shares
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Addition during the period   1,475,000   4,025,000
Redemption during the period   1,575,000   2,825,000
BREAKWAVE DRY BULK SHIPPING ETF        
Addition during the period 25,000 1,475,000 2,825,000 4,025,000
Redemption during the period 6,850,000 1,575,000 8,650,000 2,825,000
BREAKWAVE TANKER SHIPPING ETF        
Addition during the period 25,000 1,475,000 25,000 4,025,000
Redemption during the period 0 1,575,000 100,000 2,825,000
v3.24.0.1
Combined Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Cash flows provided by (used in) operating activities        
Net income (loss) $ 44,789,813 $ 3,854,720 $ 45,208,404 $ (18,496,739)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
Net realized loss (gain) on investments     (9,607,772) 31,400,798
Change in net unrealized loss (gain) on investments (17,176,027) (7,140,215) (36,016,062) (13,609,790)
Change in operating assets and liabilities:        
Sale (Purchase) of investments, net     73,389,364 (5,645,080)
Decrease in receivable for fund shares sold       1,684,835
Decrease (Increase) in interest receivable     77,771 (12,167)
Decrease (Increase) in receivable on open futures contracts     (22,461,028) (4,344,615)
Increase (Decrease) in due to Sponsor     14,647 (240,932)
Increase (Decrease) in payable on open futures contracts     (13,586,335) (9,265,175)
Increase (decrease) in other accrued expenses     42,523 42,790
Net cash provided by (used in) operating activities     37,061,512 (18,486,075)
Cash flows from financing activities        
Proceeds from sale of shares     14,100,573 35,223,901
Paid on redemption of shares     (61,539,084) (26,377,835)
Net cash provided by financing activities     (47,438,511) 8,846,066
Net increase (decrease) in cash and restricted cash     (10,376,999) (9,640,009)
Cash and restricted cash, beginning of period     38,203,690 37,188,477
Cash and restricted cash, end of period 27,826,691 27,548,468 27,826,691 27,548,468
Cash
Segregated cash held by broker 27,826,691 27,548,468 27,826,691 27,548,468
Total cash and restricted cash as shown on the statement of cash flows 27,826,691 27,548,468 27,826,691 27,548,468
BREAKWAVE DRY BULK SHIPPING ETF        
Cash flows provided by (used in) operating activities        
Net income (loss) 44,724,351 3,854,720 46,045,849 (18,496,739)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
Net realized loss (gain) on investments     (9,477,594) 31,400,798
Change in net unrealized loss (gain) on investments (17,188,035) (7,140,215) (36,924,759) (13,609,790)
Change in operating assets and liabilities:        
Sale (Purchase) of investments, net     74,289,664 (5,645,080)
Decrease in receivable for fund shares sold       1,684,835
Decrease (Increase) in interest receivable     78,457 (12,167)
Decrease (Increase) in receivable on open futures contracts     (23,286,315) (4,344,615)
Increase (Decrease) in due to Sponsor     17,319 (240,932)
Increase (Decrease) in payable on open futures contracts     (13,669,745) (9,265,175)
Increase (decrease) in other accrued expenses     43,771 42,790
Net cash provided by (used in) operating activities     37,116,647 (18,486,075)
Cash flows from financing activities        
Proceeds from sale of shares     13,708,463 35,223,901
Paid on redemption of shares     (59,822,874) (26,377,835)
Net cash provided by financing activities     (46,114,411) 8,846,066
Net increase (decrease) in cash and restricted cash     (8,997,764) (9,640,009)
Cash and restricted cash, beginning of period     35,323,736 37,188,477
Cash and restricted cash, end of period 26,325,972 27,548,468 26,325,972 27,548,468
Cash
Segregated cash held by broker 26,325,972 27,548,468 26,325,972 27,548,468
Total cash and restricted cash as shown on the statement of cash flows 26,325,972 27,548,468 26,325,972 27,548,468
BREAKWAVE TANKER SHIPPING ETF        
Cash flows provided by (used in) operating activities        
Net income (loss) 65,462 (837,445)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
Net realized loss (gain) on investments     (130,178)
Change in net unrealized loss (gain) on investments 12,008 908,697
Change in operating assets and liabilities:        
Sale (Purchase) of investments, net     (900,300)
Decrease in receivable for fund shares sold      
Decrease (Increase) in interest receivable     (686)
Decrease (Increase) in receivable on open futures contracts     825,287
Increase (Decrease) in due to Sponsor     (2,672)
Increase (Decrease) in payable on open futures contracts     83,410
Increase (decrease) in other accrued expenses     (1,248)
Net cash provided by (used in) operating activities     (55,135)
Cash flows from financing activities        
Proceeds from sale of shares     392,110
Paid on redemption of shares     (1,716,210)
Net cash provided by financing activities     (1,324,100)
Net increase (decrease) in cash and restricted cash     (1,379,235)
Cash and restricted cash, beginning of period     2,879,954
Cash and restricted cash, end of period 1,500,719 1,500,719
Cash
Segregated cash held by broker 1,500,719 1,500,719
Total cash and restricted cash as shown on the statement of cash flows $ 1,500,719 $ 1,500,719
v3.24.0.1
Organization
 6 Months Ended
Dec. 31, 2023
Organization [Abstract]  
Organization

(1) Organization

 

Amplify Commodity Trust (formerly, ETF Managers Group Commodity Trust I) (the “Trust”) was organized as a Delaware statutory trust on July 23, 2014. Effective after the close of trading on February 14, 2024, ETF Managers Capital LLC, as the prior sponsor and commodity pool operator (the “Former Sponsor”) of the Trust, entered into an agreement (the “Transfer Agreement”) to resign as Sponsor to the Trust and transfer its role as the Trust’s sponsor to Amplify Investments LLC (“the Sponsor.”) Under the terms of the Transfer Agreement, the Former Sponsor no longer has any involvement in the operations, management or marketing of the Fund. In connection with this change of Sponsor, Trust changed its name from the ETF Managers Group Commodity Trust I to the Amplify Commodity Trust. The Trust is a series trust formed pursuant to the Delaware Statutory Trust Act and currently consists of two separate series. BREAKWAVE DRY BULK SHIPPING ETF (“BDRY”), is the first series of the Trust and is a commodity pool that continuously issues shares of beneficial interest that may be purchased and sold on the NYSE Arca. The second series of the Trust, BREAKWAVE TANKER SHIPPING ETF (“BWET”), each a “Fund” and together with BDRY, the “Funds”), is also a commodity pool that continuously issues shares of beneficial interest that may be purchased and sold on the NYSE Arca. The Funds are managed and controlled by ETF Managers Capital LLC (the “Sponsor”), a Delaware limited liability company. The Sponsor is registered with the Commodity Futures Trading Commission (“CFTC”) as a “commodity pool operator” (“CPO”) and is a member of the National Futures Trading Association (“NFA”). Breakwave Advisors, LLC (“Breakwave”) is registered as a “commodity trading advisor” (“CTA”) with the CFTC and serves as the Funds commodity trading advisor.

 

BDRY commenced investment operations on March 22, 2018. BDRY commenced trading on the NYSE Arca on March 22, 2018 and trades under the symbol “BDRY.”

 

BDRY’s investment objective is to provide investors with exposure to the daily change in the price of dry bulk freight futures, before expenses and liabilities of BDRY, by tracking the performance of a portfolio (the “BDRY Benchmark Portfolio”) consisting of a three-month strip of the nearest calendar quarter of futures contracts on specified indexes (each a “Reference Index”) that measure rates for shipping dry bulk freight (“Freight Futures”). Each Reference Index is published each United Kingdom business day by the London-based Baltic Exchange Ltd. (the “Baltic Exchange”) and measures the charter rate for shipping dry bulk freight in a specific size category of cargo ship – Capesize, Panamax or Supramax. The three Reference Indexes are as follows:

 

  ● Capesize: the Capesize 5TC Index;

 

  ● Panamax: the Panamax 4TC Index; and

 

  ● Supramax: the Supramax 6TC Index.

 

The value of the Capesize 5TC Index is disseminated at 11:00 a.m., London Time and the value of the Panamax 4TC Index and the Supramax 6TC Index each is disseminated at 1:00 p.m., London Time. The Reference Index information disseminated by the Baltic Exchange also includes the components and value of each component in each Reference Index. Such Reference Index information also is widely disseminated by Reuters and/or other major market data vendors.

 

BDRY seeks to achieve its investment objective by investing substantially all of its assets in the Freight Futures currently constituting the BDRY Benchmark Portfolio. The BDRY Benchmark Portfolio includes all existing positions to maturity and settles them in cash. During any given calendar quarter, the BDRY Benchmark Portfolio progressively increases its positions to the next calendar quarter three-month strip, thus maintaining constant exposure to the Freight Futures market as positions mature.

 

The BDRY Benchmark Portfolio maintains long-only positions in Freight Futures. The BDRY Benchmark Portfolio includes a combination of Capesize, Panamax and Supramax Freight Futures. More specifically, the BDRY Benchmark Portfolio includes 50% exposure in Capesize Freight Futures contracts, 40% exposure in Panamax Freight Futures contracts and 10% exposure in Supramax Freight Futures contracts. The BDRY Benchmark Portfolio does not include and BDRY does not invest in swaps, non-cleared dry bulk freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses. BDRY may hold exchange-traded options on Freight Futures. The BDRY Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Freight Futures currently constituting the BDRY Benchmark Portfolio, as well as the daily holdings of BDRY are available on BDRY’s website at www.drybulketf.com.

 

When establishing positions in Freight Futures, BDRY will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or BDRY’s Futures Commissions Merchant (“FCM”), Marex Financial Ltd. (formerly ED&F Man Capital Markets, Inc.) On a daily basis, BDRY is obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Freight Futures positions. Any assets not required to be posted as margin with the FCM may be held at BDRY’s custodian or remain with the FCM in cash or cash equivalents, as discussed below.

 

BDRY was created to provide investors with a cost-effective and convenient way to gain exposure to daily changes in the price of Freight Futures. BDRY is intended to be used as a diversification opportunity as part of a complete portfolio, not a complete investment program.

 

The Fund will incur certain expenses in connection with its operations. The Fund will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment or as collateral for the Freight futures and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. These expenses and income from the cash and cash equivalent holdings may cause imperfect correlation between changes in the Fund’s net asset value (“NAV”) and changes in the Benchmark Portfolio, because the Benchmark Portfolio does not reflect expenses or income.

 

The Fund seeks to trade its positions prior to maturity; accordingly, natural market forces may cost the Fund while rebalancing. Each time the Fund seeks to reconstitute its positions, barring movement in the underlying securities, the futures and option prices may be higher or lower. Such differences in price, barring a movement in the price of the underlying security, will constitute “roll yield” and may inhibit the Fund’s ability to achieve its investment objective.

 

Several factors determine the total return from investing in a futures contract position. One factor that impacts the total return that will result from investing in near month futures contracts and “rolling” those contracts forward each month is the price relationship between the current near month contract and the next month contract.

 

The CTA will close existing positions when it determines it would be appropriate to do so and reinvest the proceeds in other positions. Positions may also be closed out to meet orders for redemption baskets.

 

BWET commenced investment operations on May 3, 2023. BWET commenced trading on NYSE Arca on May 3, 2023 and trades under the symbol “BWET.”

 

BWET’s investment objective is to provide investors with exposure to the daily change in the price of crude oil tanker freight futures, before expenses and liabilities of the Fund, by tracking the performance of a portfolio (the “BWET Benchmark Portfolio”) mainly consisting of the nearest calendar quarter of futures contracts on specified indexes (each a “Reference Index”) that measure prices for shipping crude oil (“Freight Futures”). Freight Futures reflect market expectations for the future cost of transporting crude oil. Each Reference Index is published each United Kingdom business day by the London-based Baltic Exchange Ltd. (the “Baltic Exchange”) and measures the charter rate for crude oil in a specific size category of cargo ship and for a specific route. The two Reference Indexes are as follows:

 

●The TD3C Index: Persian Gulf to China, 270,000mt cargo (Very Large Crude Carrier or VLCC tankers);

 

●The TD20 Index: West Africa to Europe, 130,000mt cargo (Suezmax Tankers)

 

The value of the TD3C Index and the TD20 Index is disseminated at 4:00 p.m. London Time by the Baltic Exchange. Such Reference Index information also is widely disseminated by Reuters, Bloomberg and/or other major market data vendors. 

 

The Fund seeks to achieve its investment objective by investing substantially all of its assets in the Freight Futures currently constituting the BWET Benchmark Portfolio. The BWET Benchmark Portfolio includes a combination of TD3C and TD20 Freight Futures. More specifically, the Benchmark Portfolio includes90% exposure in TD3C Freight Futures contracts and 10% exposure in TD20 Freight Futures contracts to maturity and settles them in cash. At any given time, the average maturity of the futures held by the Fund will be approximately 50 to 70 days.

 

The BWET Benchmark Portfolio does not include and BWET does not invest in swaps, non-cleared freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses. BWET may hold exchange-traded options on Freight Futures. The BWET Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Freight Futures currently constituting the BWET Benchmark Portfolio, as well as the daily holdings of BWET are available on BWET’s website at www.tankeretf.com.

 

When establishing positions in Freight Futures, BWET will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or BWET’s FCM, Marex Financial Ltd. On a daily basis, BWET is obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Freight Futures positions. Any assets not required to be posted as margin with the FCM maybe held at BWET’s custodian or remain with the FCM in cash or cash equivalents, as discussed below.

 

BWET was created to provide investors with a cost-effective and convenient way to gain exposure to daily changes in the price of Freight Futures. BWET is intended to be used as a diversification opportunity as part of a complete portfolio, not a complete investment program.

 

The Fund will incur certain expenses in connection with its operations. The Fund will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment or as collateral for the Treasury Instruments and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. The Fund may also realize interest income from its holdings in U.S. Treasuries or other market rate instruments. These expenses and income from the cash and cash equivalent holdings may cause imperfect correlation between changes in the Fund’s net asset value (“NAV”) and changes in the Benchmark Portfolio, because the Benchmark Portfolio does not reflect expenses or income.

 

The Fund seeks to trade its positions prior to maturity; accordingly, natural market forces may cost the Fund while rebalancing. Each time the Fund seeks to reconstitute its positions, barring movement in the underlying securities, the futures and option prices may be higher or lower. Such differences in price, barring a movement in the price of the underlying security, will constitute “roll yield” and may inhibit the Fund’s ability to achieve its investment objective.

 

Several factors determine the total return from investing in a futures contract position. One factor that impacts the total return that will result from investing in near month futures contracts and “rolling” those contracts forward each month is the price relationship between the current near month contract and the next month contract.

 

The CTA will close existing positions when it determines it would be appropriate to do so and reinvest the proceeds in other positions. Positions may also be closed out to meet orders for redemption baskets.
v3.24.0.1
Summary of Significant Accounting Policies
 6 Months Ended
Dec. 31, 2023
Summary of Significant Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

 

(a) Basis of Accounting

 

The accompanying combined interim financial statements of the Funds have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Each Fund qualifies as an investment company for financial reporting purposes under Topic 946 of the Accounting Standard Codification of U.S. GAAP.

 

The accompanying combined interim financial statements are unaudited, but in the opinion of management, contain all adjustments (which include normal recurring adjustments) considered necessary to present fairly the interim financial statements. These interim financial statements should be read in conjunction with the Fund’s annual report on Form 10-K for the year ended June 30, 2023, BDRY’s prospectus dated March 24, 2023 (the “BDRY Prospectus,”), and BWET’s prospectus dated April 28, 2023 (the “BWET” Prospectus”). Interim period results are not necessarily indicative of results for a full-year period.

 

(b) Use of Estimates

 

The preparation of the combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and accompanying notes. Actual results could differ from those estimates. There were no significant estimates used in the preparation of the combined financial statements/

 

(c) Cash

 

Cash, when shown in the Combined Statements of Assets and Liabilities, represents non-segregated cash with the custodian and does not include short-term investments.

 

(d) Cash Held by Broker

 

Breakwave is registered as a “commodity trading advisor” and acts as such for the Funds. The Funds’ arrangement with its FCM requires the Funds to meet their variation margin requirement related to the price movements, both positive and negative, on futures contracts held by the Funds by keeping cash on deposit with the Commodity Broker (as defined below). These amounts are shown as segregated cash held by broker in the Combined Statements of Assets and Liabilities. Each Fund deposits cash or United States Treasury Obligations, as applicable, with the FCM subject to the CFTC regulations and various exchange and broker requirements. The combination of each Fund’s deposits with the FCM of cash and United States Treasury Obligations, as applicable, and the unrealized gain or loss on open futures contracts (variation margin) represents each Fund’s overall equity in its brokerage trading account. The Funds use their cash held by the FCM to satisfy individual variation margin requirements. The Funds earn interest on their cash deposited with the FCM and interest income is recorded on the accrual basis.

 

(e) Final Net Asset Value for Fiscal Period

 

The calculation time of the Fund’s final net asset value for creation and redemption of Fund shares for the three and six months ended December 31, 2023 and 2022 was at 4:00 p.m. Eastern Time on December 29, 2023 and December 30, 2022, respectively.

 

Although the Fund’s shares may continue to trade on secondary markets subsequent to the calculation of the final NAV, the 4:00 p.m. Eastern Time represented the final opportunity to transact in creation or redemption baskets for the three and six months ended December 31, 2023 and December 31, 2022.

 

Fair value per share is determined at the close of the NYSE Arca.

 

For financial reporting purposes, each Fund values its investment positions based upon the final closing price in their primary markets. Accordingly, the investment valuations in these interim combined financial statements differ from those used in the calculations of the Fund’s final creation/redemption NAVs at December 29, 2023 and December 30, 2022.

 

(f) Investment Valuation

 

Short-term investments, excluding U.S. Treasury Bills, are carried at amortized cost, which approximates fair value. U.S. Treasury Bills, when held by the Funds, are valued as determined by an independent pricing service based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions.

 

Futures and options contracts are valued at the last settled price on the applicable exchange on which that futures and/or options contract trades.

 

(g) Financial Instruments and Fair Value

 

Each Fund discloses the fair value of its investments in accordance with the Financial Accounting Standards Board (“FASB”) fair value measurement and disclosure guidance which requires a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The disclosure requirements establish a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent to the Fund (observable inputs); and (2) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the disclosure requirements hierarchy are as follows:

 

Level I: Quoted prices (unadjusted) in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

 

Level II: Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level II inputs include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

 

Level III: Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.

 

In some instances, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

 

Fair value measurements also require additional disclosure when the volume and level of activity for the asset or liability have significantly decreased, as well as when circumstances indicate that a transaction is not orderly.

 

The following tables summarize BDRY’s valuation of investments at December 31, 2023 and at June 30, 2023 using the fair value hierarchy:

 

    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 11,704,549 a     $ 23,286,315 b     $ 34,990,864  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.

 

    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 39,591,860 a     $ (13,669,745) b     $ 25,922,115  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities.

 

Transfers between levels are recognized at the end of the reporting period. During the six months ended December 31, 2023 and the year ended June 30, 2023, BDRY recognized no transfers from Level 1, Level 2 or Level 3.

 

The following tables summarize BWET’s valuation of investments at December 31, 2023 and at June 30, 2023 using the fair value hierarchy:

 

    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 596,829 a     $ (83,410) b     $ 513,419  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities

 

    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 475,048 a     $ 825,287 b     $ 1,300,335  

 

a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.

 

Transfers between levels are recognized at the end of the reporting period. During the six months ended December 31, 2023 and the year ended June 30, 2023, BWET recognized no transfers from Level 1, Level 2 or Level 3.

 

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.

 

h) Investment Transactions and Related Income

 

Investment transactions are recorded on the trade date. All such transactions are recorded on the identified cost basis, and marked to market daily. Unrealized gain/loss on open futures contracts is reflected in Receivable/Payable on open futures contracts in the Combined Statements of Assets and Liabilities and the change in the unrealized gain/loss between periods is reflected in the Combined Statements of Operations. The Funds interest earned on short-term securities and on cash deposited with Marex Financial Ltd. is accrued daily and reflected as Interest Income, when applicable, in the Combined Statements of Operations.

 

(i) Federal Income Taxes

 

Each Fund is registered as a Delaware statutory trust and is treated as a partnership for U.S. federal income tax purposes. Accordingly, the Funds do not expect to incur U.S. federal income tax liability; rather, each beneficial owner is required to take into account their allocable share of the Funds’ income, gain, loss, deductions and other items for the Funds’ taxable year ending with or within the beneficial owner’s taxable year.

 

Management of the Funds has reviewed the open tax years and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns at December 31, 2023 and June 30, 2023. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. On an ongoing basis, management will monitor its tax positions taken to determine if adjustments to its conclusions are necessary based on factors including, but not limited to, further implementation of guidance expected from the FASB and on-going analysis of tax law, regulation, and interpretations thereof. The Funds’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.
v3.24.0.1
Investments
 6 Months Ended
Dec. 31, 2023
Investments [Abstract]  
Investments

(3) Investments

 

(a) Short -Term Investments

 

The Funds may purchase U.S. Treasury Bills, agency securities, and other high-credit quality short-term fixed income or similar securities with original maturities of one year or less. A portion of these investments may be used as margin for the Funds’ trading in futures contracts.

 

(b) Accounting for Derivative Instruments

 

In seeking to achieve each Fund’s investment objective, the commodity trading advisor uses a mathematical approach to investing. Using this approach, the commodity trading advisor determines the type, quantity and mix of investment positions that it believes in combination should produce returns consistent with the Fund’s objective.

 

All open derivative positions at December 31, 2023 and at June 30, 2023, as applicable, are disclosed in the Combined Schedules of Investments and the notional value of these open positions relative to the shareholders’ capital of the Funds is generally representative of the notional value of open positions to shareholders’ capital throughout the reporting periods for the Funds. The volume associated with derivative positions varies on a daily basis as the Funds transact in derivative contracts in order to achieve the appropriate exposure, as expressed in notional value, in comparison to shareholders’ capital consistent with the applicable Fund’s investment objective.

 

Following is a description of the derivative instruments used by the Funds during the reporting period, including the primary underlying risk exposures.

 

(c) Futures Contracts

 

The Funds enter into futures contracts to gain exposure to changes in the value of the Benchmark Portfolios. A futures contract obligates the seller to deliver (and the purchaser to accept) the future cash settlement of a specified quantity and type of a freight futures contract at a specified time and place. The contractual obligations of a buyer or seller of a freight futures contract may generally be satisfied by making an offsetting sale or purchase of an identical futures contract on the same or linked exchange before the designated date of delivery.

 

Upon entering into a futures contract, the Funds are required to deposit and maintain as collateral at least such initial margin as required by the exchange on which the transaction is affected. The initial margin is segregated as Cash held by broker, as disclosed in the Combined Statements of Assets and Liabilities, and is restricted as to its use. Pursuant to the futures contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Such receipts or payments are known as variation margin and are recorded by the Funds as unrealized gains or losses. The Funds will realize a gain or loss upon closing a futures transaction.

 

Futures contracts involve, to varying degrees, elements of market risk (specifically freight futures price risk) and exposure to loss in excess of the amount of variation margin. The face or contract amounts reflect the extent of the total exposure the Funds have in the particular classes of instruments. Additional risks associated with the use of futures contracts include imperfect correlation between movements in the price of the futures contracts and the market value of the underlying securities and the possibility of an illiquid market for a futures contract. With futures contracts, there is minimal counterparty risk to the Funds since futures contracts are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees the futures contracts against default. 

 

BREAKWAVE DRY BULK SHIPPING ETF

Fair Value of Derivative Instruments, as of December 31, 2023

 

    Asset Derivatives   Liability Derivatives  
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Dry Bulk Index Rates Market Risk   Receivable on open futures contracts   $ 23,286,315 *     —      —  

 

* Represents cumulative appreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

BREAKWAVE DRY BULK SHIPPING ETF

Fair Value of Derivative Instruments, as of June 30, 2023

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Dry Bulk Index Rates Market Risk         -       Payable on open futures contracts     $ 13,669,745 *

 

* Represents cumulative depreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

BREAKWAVE DRY BULK SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Three Months Ended December 31, 2023

 

Derivatives   Location of Gain (Loss) on Derivatives Realized
Gain on
Derivatives
Recognized in
Income		 Change in
Unrealized Gain
(Loss) on
Derivatives
Recognized in
Income
Dry Bulk Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts     $ 27,728,859     $ 17,188,035  

 

The futures contracts open at December 31, 2023 are indicative of the activity for the three months ended December 31, 2023.

 

BREAKWAVE DRY BULK SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Three Months Ended December 31, 2022

 

Derivatives   Location of Gain (Loss) on Derivatives Realized
Loss on
Derivatives
Recognized in
Income		 Change in
Unrealized Gain
(Loss) on
Derivatives
Recognized in
Income
Dry Bulk Index Rates Market Risk   Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts     $ (2,935,993 )   $ 7,140,215  

 

The futures contracts open at December 31, 2022 are indicative of the activity for the three months ended December 31, 2022.

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Dry Bulk Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 9,477,594   $ 36,924,759  

 

The futures contracts open at December 31, 2023 are indicative of the activity for the six months ended December 31, 2023.

 

BREAKWAVE DRY BULK SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Six Months Ended December 31, 2022

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Loss on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Dry Bulk Index Rates Market Risk   Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ (31,400,798 )   $ 13,609,790  

 

The futures contracts open at December 31, 2022 are indicative of the activity for the six months ended December 31, 2022.

 

BREAKWAVE TANKER SHIPPING ETF

Fair Value of Derivative Instruments, as of December 31, 2023

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Crude Oil Tanker Index Rates Market Risk         -       Payable on open futures contracts     $ 83,410 *

 

* Represents cumulative depreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

BREAKWAVE TANKER SHIPPING ETF

Fair Value of Derivative Instruments, as of June 30, 2023

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Crude Oil Tanker Index Rates Market Risk  

Receivable on open futures contracts

   $ 825,287                 - 

 

* Represents cumulative appreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

BREAKWAVE TANKER SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Three Months Ended December 31, 2023

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Crude Oil Tanker Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 96,553   $ (12,008 )

 

The futures contracts open at December 31, 2023 are indicative of the activity for the three months ended December 31, 2023.

 

BREAKWAVE TANKER SHIPPING ETF

The Effect of Derivative Instruments on the Combined Statements of Operations

For the Six Months Ended December 31, 2023

 

Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Crude Oil Tanker Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 130,178   $ (908,697 )

 

The futures contracts open at December 31, 2023 are indicative of the activity for the six months ended December 31, 2023.
v3.24.0.1
Agreements
 6 Months Ended
Dec. 31, 2023
Agreements [Abstract]  
Agreements

(4) Agreements

 

(a) Management Fee

 

Each Fund pays the Sponsor a sponsor fee (the “Sponsor Fee”) in consideration of the Sponsor’s advisory services to the Funds. Additionally, each Fund pays the commodity trading advisor a license and service fee (the “CTA fee”).

 

BDRY pays the Sponsor an annual Sponsor Fee, monthly in arrears, in an amount calculated as the greater of 0.15% of its average daily net assets, or $125,000. BDRY also pays an annual fee to Breakwave, monthly in arrears, in an amount equal to 1.45% of BDRY’s average daily net assets. Breakwave has agreed to waive its CTA fee to the extent necessary, and the Sponsor has voluntarily agreed to correspondingly assume the remaining expenses of BDRY such that Fund expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, if any, of the value of BDRY’s average daily net assets through March 31, 2025 (the “BDRY Expense Cap,”). The assumption of expenses by the Sponsor and waiver of BDRY’s CTA fee are contractual on the part of the Sponsor and Breakwave, respectively.

 

The waiver of BDRY’s CTA fees, pursuant to the undertaking, amounted to $-0- and $38,707, for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $66,332 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. Effective September 1, 2022 Breakwave may, during the term of the waiver agreement, recoup any fees waived pursuant to the contract; however, the Fund will only make repayments to Breakwave if such repayment does not cause the Fund’s expense ratio after the repayment is taken into account, to exceed either (i) the expense cap in place at the time such amounts were waived, or (ii) the Fund’s current expense cap. Such recoupment is limited to three years from the date the amount is initially waived. At September 30, 2023, BDRY is not subject to potential future repayments to Breakwave.

 

BWET pays the Sponsor an annual Sponsor Fee, monthly in arrears, in an amount calculated as the greater of 0.30% of its average daily net assets, or $50,000. BWET also pays an annual CTA license and service fee to Breakwave, monthly in arrears, in an amount equal to 1.45% of BDRY’s average daily net assets. Breakwave has agreed to waive its CTA fee to the extent necessary, and the Sponsor has voluntarily agreed to correspondingly assume the remaining expenses of BWET such that Fund expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, if any, of the value of BWET’s average daily net assets through March 31, 2025 (the “BWET Expense Cap”). The assumption of expenses by the Sponsor and waiver of BWET’s CTA fee are contractual on the part of the Sponsor and Breakwave, respectively.

 

The waiver of BWET’s CTA fees, pursuant to the undertaking, amounted to $7,347 for the three months ended December 31, 2023 and $20,130 for the six months ended December 31, 2023 as disclosed in the Combined Statements of Operations. Breakwave may, during the term of the waiver agreement, recoup any fees waived pursuant to the contract; however, the Fund will only make repayments to Breakwave if such repayment does not cause the Fund’s expense ratio after the repayment is taken into account, to exceed either (i) the expense cap in place at the time such amounts were waived, or (ii) the Fund’s current expense cap. Such recoupment is limited to three years from the date the amount is initially waived. At December 31, 2023, BWET is subject to potential future repayments of $27,704 to Breakwave. The potential future repayments expire during the years ending June 30, 2026 and 2027 in the amounts of $7,574 and $20,130, respectively.

 

The Funds currently accrue their daily expenses up to the Expense Cap, or if less, at accrual estimates established by the Sponsor. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor has assumed, and is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Funds in excess of the Fund’s respective Expense Cap, which in the case of BDRY, aggregated $-0- and $-0- for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $-0- for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations.

 

In the case of BWET, expenses absorbed by the Sponsor aggregated $74,622 and $160,731, respectively for the three and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations.

 

(b) The Administrator, Custodian, Fund Accountant and Transfer Agent

 

Each Fund has appointed U.S. Bank, a national banking association, with its principal office in Milwaukee, Wisconsin, as the custodian (the “Custodian”). Its affiliate, U.S. Bancorp Fund Services, is the Fund accountant (“the Fund accountant”) of the Funds, transfer agent (the “Transfer Agent”) for Fund shares and administrator for the Funds (the “Administrator”). It performs certain administrative and accounting services for the Funds and prepares certain SEC, NFA and CFTC reports on behalf of the Funds. (U.S. Bank and U.S. Bancorp Fund Services are referred to collectively hereinafter as “U.S. Bank”).

 

Each Fund has agreed to pay U.S. Bank 0.05% of average assets under management (AUM), with a $45,000 minimum annual fee payable for its administrative, accounting and transfer agent services and 0.01% of AUM, with an annual minimum of $4,800 for custody services. BDRY paid U.S. Bank $16,576 and $16,637 for the three months ended December 31, 2023 and 2022, respectively, and $33,173 and $33,274 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET paid U.S. Bank $15,020 and $30,056 for the three and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations.

 

(c) The Distributor

 

Through August 13, 2023, each Fund paid ETFMG Financial LLC (the “former Distributor”), an affiliate of the Sponsor, an annual fee for statutory and wholesaling distribution services and related administrative services equal to the greater of $15,000 or 0.02% of the Fund’s average daily net assets, payable monthly. Pursuant to the respective Marketing Agent Agreements between the Sponsor, each Fund and the former Distributor, the former Distributor assisted the Sponsor and the applicable Fund with certain functions and duties relating to distribution and marketing services to the applicable Fund, including reviewing and approving marketing materials and certain regulatory compliance matters. The Distributor also assisted with the processing of creation and redemption orders.

 

Effective August 14, 2023, the Sponsor entered into a Marketing Agent Agreement (the “Marketing Agreement”) on behalf of the Trust and the Funds with Foreside Fund Services, LLC (“Foreside”), pursuant to which Foreside provides certain marketing services to the Funds. Each Fund pays an annual fee for such distribution services and related administrative services, with a minimum of approximately $7,150 payable annually. Pursuant to the Marketing Agent Agreement between the Sponsor, the Funds and Foreside, Foreside assists the Sponsor and the Funds with certain functions and duties relating to distribution and marketing services to the Funds, including reviewing and approving marketing materials and certain regulatory compliance matters. Foreside also assists with the processing of creation and redemption orders. Foreside’s principal business office is located in Portland, ME.

 

BDRY incurred $3,944 and $3,959 in distribution and related administrative services for the three months ended December 31, 2023 and 2022, respectively, and $7,893 and $7,918 for the six months ended December 31. 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET incurred $3,927 and $7,874 in distribution and related administrative services for the three months and six months ended December 31, 2023, respectively, as disclosed in the Combined Statements of Operations.

 

BDRY pays the Sponsor an annual fee for wholesale support services of $25,000 plus 0.12% of BDRY’s average daily net assets, payable monthly. BWET pays the Sponsor an annual fee for wholesale support services of $15,000 plus 0.15% of BWET’s average daily net assets, payable monthly.

 

BDRY incurred $24,094 and $17,422 in wholesale support fees for the three months ended December 31, 2023 and 2022, respectively, and $50,112 and $35,122 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET incurred $4,528 and $9,622 in wholesale support fees for the three and six months ended December 31, respectively, as disclosed in the Combined Statements of Operations.

 

(d) The Commodity Broker

 

Marex Financial Ltd., registered in England, serves as each Fund’s clearing broker (the “Commodity Broker”). In its capacity as clearing broker, the Commodity Broker executes and clears the Fund’s futures transactions and performs certain administrative services for the Funds.

 

The Funds pay respective brokerage commissions, including applicable exchange fees, National Futures Association (“NFA”) fees, give–up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with trading activities in CFTC regulated investments. Brokerage commissions on futures contracts are recognized on a half-turn basis.

 

The Sponsor does not expect annual brokerage commissions and fees to exceed 0.40% for BDRY and 1.35% for BWET (excluding the impact on each Fund of creation and/or redemption activity) of the net asset value of BDRY and BWET, respectively, for execution and clearing services on behalf of the Funds, although the actual amount of brokerage commissions and fees in any year or any part of any year may be greater. The effects of trading spreads, financing costs associated with financial instruments, and costs relating to the purchase of U.S. Treasury Securities or similar high credit quality short-term fixed-income or similar securities are not included in the foregoing analysis. BDRY incurred $164,318 and $142,544 in brokerage commissions and fees for the three months ended December 31, 2023 and 2022, respectively, and $356,616 and $252,166 for the six months ended December 31, 2023 and 2022, respectively, as disclosed in the Combined Statements of Operations. BWET incurred $8,823 and $24,327 in brokerage commissions and fees for the three and six months ended June 30, 2023, respectively, as disclosed in the Combined Statement of Operations.

 

(e) The Trustee

 

Under the Amended and Restated Declaration of Trust and Trust Agreement (the “Trust Agreement”) for each Fund, Wilmington Trust Company, the Trustee of each of the Funds (the “Trustee”) serves as the sole trustee of each Fund in the State of Delaware. The Trustee will accept service of legal process on the Funds in the State of Delaware and will make certain filings under the Delaware Statutory Trust Act. Under the Trust Agreement for each Fund, the Sponsor has the exclusive management and control of all aspects of the business of the Funds. The Trustee does not owe any other duties to the Funds, the Sponsor or the Shareholders of the Funds. The Trustee has no duty or liability to supervise or monitor the performance of the Sponsor, nor does the Trustee have any liability for the acts or omissions of the Sponsor. BDRY incurred $628 and $1,260 in trustee fees for the three months ended December 31, 2023 and 2022, respectively, and $1,256 and $2,520 for the six months ended December 31, 2023 and 2022, respectively, which is included in Other Expenses in the Combined Statements of Operations. BWET incurred $628 and $1,256 in trustee fees for the three and six months ended December 31, 2023, respectively as disclosed in the Combined Statement of Operations.

 

(f) Routine Offering, Operational, Administrative and Other Ordinary Expenses

 

The Sponsor, in accordance with the BDRY Expense Cap limitation paid, after the waiver of the CTA fee for BDRY by Breakwave, if any, all of the routine offering, operational, administrative and other ordinary expenses of BDRY in excess of 3.50% (excluding brokerage commissions and interest expense) of BDRY’s average daily net assets, including, but not limited to, accounting and computer services, the fees and expenses of the Trustee, Administrator, Custodian, Transfer Agent and Distributor, legal and accounting fees and expenses, tax return preparation expenses, filing fees, and printing, mailing and duplication costs. BDRY incurred $650,217 and $505,629 for the three months ended December 31, 2023 and 2022, respectively, and $1,351,888 and $976,903 for the six months ended December 31, 2023 and 2022, respectively, in routine offering, operational, administrative or other ordinary expenses.

 

The CTA fee waiver for BDRY by Breakwave was $-0- and $38,707 for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $66,332 for the six months ended December 31, 2023 and 2022, respectively.

 

In addition, the assumption of Fund expenses above the BDRY Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted to $-0- and $-0- for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $-0- for the six months ended December 31, 2023 and 2022, respectively.

 

The Sponsor, in accordance with the BWET Expense Cap limitation paid, after the waiver of a portion of the CTA fee for BWET by Breakwave, all of the routine offering, operational, administrative and other ordinary expenses of BWET in excess of 3.50% (excluding brokerage commissions and interest expense) of BWET’s average daily net assets, including, but not limited to, accounting and computer services, the fees and expenses of the Trustee, Administrator, Custodian, Transfer Agent and Distributor, legal and accounting fees and expenses, tax return preparation expenses, filing fees, and printing, mailing and duplication costs. BWET incurred $108,527 and $253,668 for the three and six months ended December 31, 2023, respectively, in routine offering, operational, administrative or other ordinary expenses.

 

The CTA fee waiver for BWET by Breakwave was $7,347 and $20,130 for the three months and six months ended December 31, 2023, respectively.

 

In addition, the assumption of Fund expenses above the BWET Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted to $74,622 and 160,731 for the three and six months ended December 31, 2023, respectively.

 

(g) Organizational and Offering Costs

 

Expenses incurred in connection with organizing BDRY and BWET and up to the offering of their Shares upon commencement of their investment operations on March 22, 2018 and May 3, 2023, respectively, were paid by the Sponsor and Breakwave without reimbursement.

 

Accordingly, all such expenses are not reflected in the Combined Statements of Operations. The Funds will bear the costs of their continuous offering of Shares and ongoing offering expenses. Such ongoing offering costs will be included as a portion of the Routine Offering, Operational, Administrative and Other Ordinary Expenses. These costs will include registration fees for regulatory agencies and all legal, accounting, printing and other expenses associated therewith.

 

(h) Extraordinary Fees and Expenses

 

The Funds will pay all extraordinary fees and expenses, if any. Extraordinary fees and expenses are fees and expenses which are nonrecurring and unusual in nature, such as legal claims and liabilities, litigation costs or indemnification or other unanticipated expenses. Such extraordinary fees and expenses, by their nature, are unpredictable in terms of timing and amount. For the three and six months ended December 3’, 2023 and 2022, respectively, BDRY did not incur such expenses. For the three and six months ended December 31, 2023, respectively, BWET did not incur such expenses.
v3.24.0.1
Creations and Redemptions
 6 Months Ended
Dec. 31, 2023
Creations and Redemptions [Abstract]  
Creations and Redemptions

(5) Creations and Redemptions

 

Each Fund issues and redeems Shares from time to time, but only in one or more Creation Baskets. A Creation Basket is a block of 25,000 Shares of the particular Fund. Baskets may be created or redeemed only by Authorized Participants.

 

Except when aggregated in Creation Baskets, the Shares are not redeemable securities. Retail investors, therefore, generally will not be able to purchase or redeem Shares directly from or with the Fund. Rather, most retail investors will purchase or sell Shares in the secondary market with the assistance of a broker. Thus, some of the information contained in these Notes to Interim Combined Financial Statements – such as references to the Transaction Fee imposed on creations and redemptions – is not relevant to retail investors.

 

(a) Transaction Fees on Creation and Redemption Transactions

 

In connection with orders to create and redeem one or more Creation Baskets, an Authorized Participant is required to pay a transaction fee, or AP Transaction Fee, of $300 per BDRY or BWET order, which goes directly to the Custodian. The AP Transaction Fees are paid by the Authorized Participants and not by the Funds.

 

b) Share Transactions

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Three Months Ended December 31, 2023
   Shares   Net Assets
Decrease		 
Shares Sold   25,000   $145,145 
Shares Redeemed   (6,850,000)   (50,163,369)
Net Decrease   (6,825,000)  $(50,018,224)

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Three Months Ended December 31, 2022
   Shares   Net Assets
Decrease		 
Shares Sold   1,475,000   $11,574,875 
Shares Redeemed   (1,575,000)   (13,796,285)
Net Decrease   (100,000)  $(2,221,410)

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Six Months Ended December 31, 2023
   Shares   Net Assets
Decrease		 
Shares Sold   2,825,000   $13,708,463 
Shares Redeemed   (8,650,000)   (59,822,874)
Net Decrease   (5,825,000)  $(46,114,411)

 

BREAKWAVE DRY BULK SHIPPING ETF

 

Summary of Share Transactions for the Six Months Ended December 31, 2022
   Shares   Net Assets
Increase		 
Shares Sold   4,025,000   $35,223,901 
Shares Redeemed   (2,825,000)   (26,377,835)
Net Increase   1,200,000  $8,846,066

 

BREAKWAVE TANKER SHIPPING ETF

 

Summary of Share Transactions for the Three Months Ended December 31, 2023
   Shares   Net Assets
Increase		 
Shares Sold   25,000   $392,110 
Shares Redeemed   -   -
Net Increase   25,000   $392,110

 

BREAKWAVE TANKER SHIPPING ETF

 

Summary of Share Transactions for the Six Months Ended December 31, 2023
    Shares     Net Assets
Decrease		  
Shares Sold     25,000     $ 392,110  
Shares Redeemed     (100,000 )     (1,716,210 )
Net Decrease     (75,000 )   $ (1,324,100 )
v3.24.0.1
Risk
 6 Months Ended
Dec. 31, 2023
Risk [Abstract]  
Risk

(6) Risk

 

(a) Investment Related Risk

 

The NAV of BDRY and BWET shares relates directly to the value of the futures investments held by each Fund which are materially impacted by fluctuations in changes in spot charter rates. Charter rates for dry bulk vessels and crude oil tankers are volatile and have declined significantly since their historic highs and may remain at low levels or decrease further in the future.

 

Futures and options contracts have expiration dates. Before or upon the expiration of a contract, BDRY and/or BWET may be required to enter into replacement contracts that are priced higher or that have less favorable terms than the contracts being replaced (see “Negative Roll Risk,” below). The Freight Futures market settles in cash against published indices, so there is no physical delivery against the futures contracts.

 

Similar to other futures contracts, the Freight Futures curve shape could be either in “contango” (where the futures curve is upward sloping with the next futures price higher than the current one) or “backwardation” (where each of the next futures prices are lower than the current one). Contango curves are generally characterized by negative roll cost, as the expiring contract value is lower that the next prompt contract value, assuming the same lot size. That means there could be losses incurred when the contracts are rolled each period (“Negative Roll Risk”) and such losses are independent of the Freight Futures price level.

 

The Russia-Ukraine war poses an increasing risk for global economic growth. Major economic sanctions against Russia are having a considerable impact on oil and gas prices, given the dependence of the EU on oil and gas exports out of Russia combined with limited spare capacity of such commodities globally. Energy prices have increased significantly, leading to major inflationary pressures in the major developed countries that rely heavily on oil and gas exports out of Russia. In the case of BDRY, the combined Russia/Ukraine region account for approximately one-quarter of global grain production, one of the main cargoes transported by dry bulk vessels, while coal and iron ore exports out of the region have also been reduced. The above factors can have a material negative impact on demand for dry bulk transportation, while slower economic growth could also negatively affect demand for dry bulk commodities in the rest of the world, leading to lower dry bulk freight rates.

 

The conflict between Russia and Ukraine is having a profound impact on global commodities prices including grain and coal, two of the most important commodities for dry bulk shipping. Given the importance of the region in export volumes for both grains and coal, a prolonged stoppage could lead to significantly lower freight rates and thus a decline in freight futures prices and a decline in the value of BDRY. Although coal supplies could potentially be sourced from elsewhere partly mitigating the negative impact of the lost volumes, global grain production capacity is limited, and thus the impact of the lost volumes could not be easily mitigated. In addition, the recent geopolitical turmoil has led to an increase in government protectionism when it comes to commodities, and if such a trend continues, it could lead to lower bulk commodities trading globally over the long term. The impact of such a scenario on dry bulk shipping will be negative, leading to lower spot rates and as a result lower freight futures prices and a decline in the value of BDRY.

 

In the case of BWET, the conflict between Russia and Ukraine has also had a profound impact on oil prices and as a result on tanker rates and might continue to impact the level of tanker rates for years to come. Russia accounts for more than 10% of global oil production. Sanctions put in place to limit the exports of crude oil and refined products from Russia has caused a reshuffling in tanker trade patterns and has led to increasing volatility in tanker freight rates. With limited seaborne crude exports out of Russia, refiners and oil traders have been seeking alternative sources for feedstock crude, causing major disruptions in the traditional crude oil trading patterns. Volatility in tanker rates has increased, especially for tankers carrying refined products. As volatility of spot charter rates increases, higher trading volumes in freight futures would be expected as market participants tend to increase their hedging requirements. In addition, oil price volatility has increased significantly, impacting tanker spot rate freight rates. 

 

Most recently, Hamas attacked Israel, with Israel then declaring war on Hamas in the Gaza Strip. This conflict has stoked fears of oil supply instability in the Middle East and globally. While not having an immediate impact on global oil production or tanker trade patterns, escalation or expansion of hostilities, interventions by other groups or nations, the imposition of economic sanctions on any of the oil producing nations, disruption of shipping transit in the Straits of Hormuz or other significant trade routes, or similar outcomes could lead to oil supply instability. The conflict is ongoing and, should it escalate and expand toother oil producing nations in the region, it may have a profound negative impact on oil prices and, as a result, the supply and demand for freight that could have a negative impact on spot freight rates for dry bulk and liquid freight and on Freight Futures.

 

In addition, The People’s Republic of China (“China”) accounts for a sizable part of oil demand, and changes in the economic and political environment in China and policies adopted by the government to regulate its economy may have a material adverse effect on tanker charter rates and as a result, Freight Futures.

 

(b) Liquidity Risk

 

In certain circumstances, such as the disruption of the orderly markets for the futures contracts or Financial Instruments in which the Fund invest, the Funds might not be able to dispose of certain holdings quickly or at prices that represent what the market value may have been in an orderly market. Futures and option positions cannot always be liquidated at the desired price. It is difficult to execute a trade at a specific price when there is a relatively small volume of buy and sell orders in a market. A market disruption can also make it difficult to liquidate a position. The large size of the positions that the Funds may acquire increases the risk of illiquidity both by making its positions more difficult to liquidate and by potentially increasing losses while trying to do so. Such a situation may prevent the Funds from limiting losses, realizing gains or achieving a high correlation with the applicable Benchmark Portfolio.

 

(c) Natural Disaster/Epidemic Risk 

 

Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics (for example, the novel coronavirus COVID-19), have been and can be highly disruptive to economies and markets and have recently led, and may continue to lead, to increased market volatility and significant market losses. Such natural disaster and health crises could exacerbate political, social, and economic risks previously mentioned, and result in significant breakdowns, delays, shutdowns, social isolation, and other disruptions to important global, local and regional supply chains affected, with potential corresponding results on the operating performance of the Funds and their investments. A climate of uncertainty and panic, including the contagion of infectious viruses or diseases, may adversely affect global, regional, and local economies and reduce the availability of potential investment opportunities, and increases the difficulty of performing due diligence and modeling market conditions, potentially reducing the accuracy of financial projections. Under these circumstances, the Funds may have difficulty achieving their investment objectives which may adversely impact performance. Further, such events can be highly disruptive to economies and markets, significantly disrupt the operations of individual companies (including, but not limited to, the Funds’ Sponsor and third party service providers), sectors, industries, markets, securities and commodity exchanges, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Funds’ investments. These factors can cause substantial market volatility. exchange trading suspensions and closures and can impact the ability of the Funds to complete redemptions and otherwise affect each Fund’s performance and the Funds’ trading in the secondary market. A widespread crisis may also affect the global economy in ways that cannot necessarily be foreseen at the current time. How long such events will last and whether they will continue or recur cannot be predicted. Impacts from these events could have significant impact on the Funds’ performance, resulting in losses to the Funds.
v3.24.0.1
Profit and Loss Allocations and Distributions
 6 Months Ended
Dec. 31, 2023
Profit and Loss Allocations and Distributions [Abstract]  
Profit and Loss Allocations and Distributions

(7) Profit and Loss Allocations and Distributions

 

Pursuant to the Trust Agreement, income and expenses of the Funds are allocated pro rata among the Shareholders monthly based on their respective percentage interests as of the close of the last trading day of the preceding month.

 

Any losses allocated to the Sponsor which are in excess of the Sponsor’s capital balance are allocated to the Shareholders in accordance with their respective interest in the applicable Fund as a percentage of total Shareholders’ capital. Distributions (other than redemption of units) may be made at the sole discretion of the Sponsor on a pro rata basis in accordance with the respective interests of the Shareholders.
v3.24.0.1
Indemnifications
 6 Months Ended
Dec. 31, 2023
Indemnifications [Abstract]  
Indemnifications

(8) Indemnifications

 

The Sponsor, either in its own capacity or in its capacity as the Sponsor and on behalf of the Funds, has entered into various service agreements that contain a variety of representations, or provide indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Funds. As of December 31, 2023, the Funds had not received any claims or incurred any losses pursuant to these agreements and expects the risk of such losses to be remote.
v3.24.0.1
Termination
 6 Months Ended
Dec. 31, 2023
Termination [Abstract]  
Termination

(9) Termination

 

The term of each Fund is perpetual unless terminated earlier in certain circumstances as described in the applicable Prospectus.
v3.24.0.1
Net Asset Value and Financial Highlights
 6 Months Ended
Dec. 31, 2023
Net Asset Value and Financial Highlights [Abstract]  
Net Asset Value and Financial Highlights

(10) Net Asset Value and Financial Highlights

 

The Funds are presenting, as applicable, the following net asset value and financial highlights related to investment performance for a Share outstanding throughout the three and six months ended December 31, 2023 and December 31, 2022, respectively. The net investment income and total expense ratios are calculated using average net assets. The net asset value presentation is calculated by dividing each Fund’s net assets by the average daily number of Shares outstanding. The net investment income (loss) and expense ratios have been annualized. The total return is based on the change in net asset value and market value of the Shares during the period. An individual investor’s return and ratios may vary based on the timing of their transactions in Fund Shares.

 

   BREAKWAVE DRY BULK   BREAKWAVE TANKER 
   SHIPPING ETF   SHIPPING ETF 
   For the Three Months Ended
December 31,		   For the Three Months Ended
December 31,		 
   2023   2022   2023   2022 
                 
Net Asset Value                
Net asset value per Share, beginning of period  $5.50   $8.75   $15.48   $- 
Net investment income (loss)   (0.02)   (0.08)   (0.16)   - 
Net realized and unrealized gain (loss)   6.16    0.71    0.72    - 
Net Income (Loss)   6.14    0.63    0.56    - 
Net Asset Value per Share, end of period  $11.64   $9.38   $16.04   $- 
Market Value per Share, end of period  $11.56   $9.19   $16.15   $- 
Ratios to Average Net Assets*                    
Expense Ratio***   4.38%   5.04%   5.24%   0.00%
Expense Ratio*** before Waiver/Assumption   4.38%   5.46%   21.42%   0.00%
Net Investment Income (Loss)   (1.30)%   (3.77)%   (3.77)%   0.00%
Total Return, at Net Asset Value**   111.64%   7.20%   3.62%   0.00%
Total Return, at Market Value**   110.56%   1.66%   2.41%   0.00%

 

*Percentages are annualized
**Percentages are not annualized
***Fund expenses have been capped at 3.50% of average daily net assets, plus brokerage commissions, interest expense, and extraordinary expenses, if any.

 

   BREAKWAVE DRY BULK  

BREAKWAVE TANKER

 
   SHIPPING ETF   SHIPPING ETF 
   For the Six Months Ended
December 31,		  

For the Six Months Ended

December 31,

 
   2023   2022   2023   2022 
                 
Net Asset Value                    
Net asset value per Share, beginning of period  $5.53   $17.06   $20.83   $- 
Net investment income (loss)   (0.03)   (0.18)   (0.37)   - 
Net realized and unrealized gain (loss)   6.14    (7.50)   (4.42)   - 
Net Income (Loss)   6.11    (7.68)   (4.79)   - 
Net Asset Value per Share, end of period  $11.64   $9.38   $16.04   $- 
Market Value per Share, end of period  $11.56   $9.19   $16.16   $- 
Ratios to Average Net Assets*                    
Expense Ratio***   4.32%   4.85%   5.24%   0.00%
Expense Ratio*** before Waiver/Assumption   4.32%   5.21%   18.27%   0.00%
Net Investment Income (Loss)   (1.14)%   (3.76)%   (4.24)%   0.00%
Total Return, at Net Asset Value**   110.49%   (45.02)%   (23.00)%   0.00%
Total Return, at Market Value**   108.29%   (46.48)%   (22.65)%   0.00%

 

*Percentages are annualized
**Percentages are not annualized
***Fund expenses have been capped at 3.50% of average daily net assets, plus brokerage commissions, interest expense, and extraordinary expenses, if any.
v3.24.0.1
Subsequent Events
 6 Months Ended
Dec. 31, 2023
Subsequent Events [To Be Revised] [Abstract]  
Subsequent Events

(11) Subsequent Events

 

The Trust and Breakwave Dry Bulk Shipping ETF (“BDRY”) and Breakwave Tanker Shipping ETF (“BWET,” and together with BDRY, each a “Fund” and collectively, the “Funds”) are managed and controlled by the Sponsor, (Amplify Investments LLC). Effective after the close of trading on February 14, 2024, the Former Sponsor, ETF Managers Capital LLC, entered into a Transfer Agreement to resign as Sponsor to the Trust and transfer its role as the Trust’s sponsor to the Sponsor. Under the terms of the Transfer Agreement, the Former Sponsor no longer has any involvement in the operations, management or marketing of the Fund. Breakwave Advisors LLC (“Breakwave”) continues to serve as the Fund’s commodity trading advisor. The Sponsor, Former Sponsor, Breakwave and the Trust do not believe that the change of Trust sponsor will have any impact on a shareholder’s investment in the Fund.

 

In preparing these interim financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the interim financial statements were issued. This evaluation did not result in any other subsequent events that necessitated disclosures and/or adjustments to the financial statements.
v3.24.0.1
Accounting Policies, by Policy (Policies)
 6 Months Ended
Dec. 31, 2023
Summary of Significant Accounting Policies [Abstract]  
Basis of Accounting

(a) Basis of Accounting

The accompanying combined interim financial statements of the Funds have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Each Fund qualifies as an investment company for financial reporting purposes under Topic 946 of the Accounting Standard Codification of U.S. GAAP.

The accompanying combined interim financial statements are unaudited, but in the opinion of management, contain all adjustments (which include normal recurring adjustments) considered necessary to present fairly the interim financial statements. These interim financial statements should be read in conjunction with the Fund’s annual report on Form 10-K for the year ended June 30, 2023, BDRY’s prospectus dated March 24, 2023 (the “BDRY Prospectus,”), and BWET’s prospectus dated April 28, 2023 (the “BWET” Prospectus”). Interim period results are not necessarily indicative of results for a full-year period.

 
Use of Estimates

(b) Use of Estimates

The preparation of the combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and accompanying notes. Actual results could differ from those estimates. There were no significant estimates used in the preparation of the combined financial statements/
Cash

(c) Cash

Cash, when shown in the Combined Statements of Assets and Liabilities, represents non-segregated cash with the custodian and does not include short-term investments.
Cash Held by Broker

(d) Cash Held by Broker

Breakwave is registered as a “commodity trading advisor” and acts as such for the Funds. The Funds’ arrangement with its FCM requires the Funds to meet their variation margin requirement related to the price movements, both positive and negative, on futures contracts held by the Funds by keeping cash on deposit with the Commodity Broker (as defined below). These amounts are shown as segregated cash held by broker in the Combined Statements of Assets and Liabilities. Each Fund deposits cash or United States Treasury Obligations, as applicable, with the FCM subject to the CFTC regulations and various exchange and broker requirements. The combination of each Fund’s deposits with the FCM of cash and United States Treasury Obligations, as applicable, and the unrealized gain or loss on open futures contracts (variation margin) represents each Fund’s overall equity in its brokerage trading account. The Funds use their cash held by the FCM to satisfy individual variation margin requirements. The Funds earn interest on their cash deposited with the FCM and interest income is recorded on the accrual basis.
Final Net Asset Value for Fiscal Period

(e) Final Net Asset Value for Fiscal Period

The calculation time of the Fund’s final net asset value for creation and redemption of Fund shares for the three and six months ended December 31, 2023 and 2022 was at 4:00 p.m. Eastern Time on December 29, 2023 and December 30, 2022, respectively.

Although the Fund’s shares may continue to trade on secondary markets subsequent to the calculation of the final NAV, the 4:00 p.m. Eastern Time represented the final opportunity to transact in creation or redemption baskets for the three and six months ended December 31, 2023 and December 31, 2022.

Fair value per share is determined at the close of the NYSE Arca.

For financial reporting purposes, each Fund values its investment positions based upon the final closing price in their primary markets. Accordingly, the investment valuations in these interim combined financial statements differ from those used in the calculations of the Fund’s final creation/redemption NAVs at December 29, 2023 and December 30, 2022.
Investment Valuation

(f) Investment Valuation

Short-term investments, excluding U.S. Treasury Bills, are carried at amortized cost, which approximates fair value. U.S. Treasury Bills, when held by the Funds, are valued as determined by an independent pricing service based on methods which include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions.

Futures and options contracts are valued at the last settled price on the applicable exchange on which that futures and/or options contract trades.

 
Financial Instruments and Fair Value

(g) Financial Instruments and Fair Value

Each Fund discloses the fair value of its investments in accordance with the Financial Accounting Standards Board (“FASB”) fair value measurement and disclosure guidance which requires a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The disclosure requirements establish a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent to the Fund (observable inputs); and (2) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the disclosure requirements hierarchy are as follows:

Level I: Quoted prices (unadjusted) in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.
Level II: Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly. Level II inputs include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).
Level III: Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.

In some instances, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

Fair value measurements also require additional disclosure when the volume and level of activity for the asset or liability have significantly decreased, as well as when circumstances indicate that a transaction is not orderly.

The following tables summarize BDRY’s valuation of investments at December 31, 2023 and at June 30, 2023 using the fair value hierarchy:

    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 11,704,549 a     $ 23,286,315 b     $ 34,990,864  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.
    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 39,591,860 a     $ (13,669,745) b     $ 25,922,115  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities.

Transfers between levels are recognized at the end of the reporting period. During the six months ended December 31, 2023 and the year ended June 30, 2023, BDRY recognized no transfers from Level 1, Level 2 or Level 3.

 

The following tables summarize BWET’s valuation of investments at December 31, 2023 and at June 30, 2023 using the fair value hierarchy:

    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 596,829 a     $ (83,410) b     $ 513,419  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities
    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 475,048 a     $ 825,287 b     $ 1,300,335  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.

Transfers between levels are recognized at the end of the reporting period. During the six months ended December 31, 2023 and the year ended June 30, 2023, BWET recognized no transfers from Level 1, Level 2 or Level 3.

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.
Investment Transactions and Related Income

h) Investment Transactions and Related Income

Investment transactions are recorded on the trade date. All such transactions are recorded on the identified cost basis, and marked to market daily. Unrealized gain/loss on open futures contracts is reflected in Receivable/Payable on open futures contracts in the Combined Statements of Assets and Liabilities and the change in the unrealized gain/loss between periods is reflected in the Combined Statements of Operations. The Funds interest earned on short-term securities and on cash deposited with Marex Financial Ltd. is accrued daily and reflected as Interest Income, when applicable, in the Combined Statements of Operations.
Federal Income Taxes

(i) Federal Income Taxes

Each Fund is registered as a Delaware statutory trust and is treated as a partnership for U.S. federal income tax purposes. Accordingly, the Funds do not expect to incur U.S. federal income tax liability; rather, each beneficial owner is required to take into account their allocable share of the Funds’ income, gain, loss, deductions and other items for the Funds’ taxable year ending with or within the beneficial owner’s taxable year.

Management of the Funds has reviewed the open tax years and major jurisdictions and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns at December 31, 2023 and June 30, 2023. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. On an ongoing basis, management will monitor its tax positions taken to determine if adjustments to its conclusions are necessary based on factors including, but not limited to, further implementation of guidance expected from the FASB and on-going analysis of tax law, regulation, and interpretations thereof. The Funds’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years after they are filed.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Dec. 31, 2023
Summary of Significant Accounting Policies [Abstract]  
Schedule of Fair Value Hierarchy The following tables summarize BDRY’s valuation of investments at December 31, 2023 and at June 30, 2023 using the fair value hierarchy:
    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 11,704,549 a     $ 23,286,315 b     $ 34,990,864  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.
    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 39,591,860 a     $ (13,669,745) b     $ 25,922,115  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities.
    December 31, 2023 (unaudited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 596,829 a     $ (83,410) b     $ 513,419  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities
    June 30, 2023 (audited)
    Short-Term
Investments		 Futures
Contracts		 Total
Level I – Quoted Prices     $ 475,048 a     $ 825,287 b     $ 1,300,335  
a– Included in Investments in securities in the Combined Statements of Assets and Liabilities.
b– Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.
v3.24.0.1
Investments (Tables)
 6 Months Ended
Dec. 31, 2023
Investments [Abstract]  
Schedule of Effect of Derivative Instruments on the Statements of Operations Fair Value of Derivative Instruments, as of December 31, 2023
    Asset Derivatives   Liability Derivatives  
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Dry Bulk Index Rates Market Risk   Receivable on open futures contracts   $ 23,286,315 *     —      —  
* Represents cumulative appreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Dry Bulk Index Rates Market Risk         -       Payable on open futures contracts     $ 13,669,745 *
* Represents cumulative depreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.
    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Crude Oil Tanker Index Rates Market Risk         -       Payable on open futures contracts     $ 83,410 *
* Represents cumulative depreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.

 

    Asset Derivatives   Liability Derivatives
Derivatives   Combined Statements of
Assets and Liabilities		   Fair
Value		     Combined Statements of
Assets and Liabilities		     Fair
Value		  
Crude Oil Tanker Index Rates Market Risk  

Receivable on open futures contracts

   $ 825,287                 - 
* Represents cumulative appreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.
Schedule of Effect of Derivative Instruments on the Statements of Operations For the Three Months Ended December 31, 2023
Derivatives   Location of Gain (Loss) on Derivatives Realized
Gain on
Derivatives
Recognized in
Income		 Change in
Unrealized Gain
(Loss) on
Derivatives
Recognized in
Income
Dry Bulk Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts     $ 27,728,859     $ 17,188,035  
Derivatives   Location of Gain (Loss) on Derivatives Realized
Loss on
Derivatives
Recognized in
Income		 Change in
Unrealized Gain
(Loss) on
Derivatives
Recognized in
Income
Dry Bulk Index Rates Market Risk   Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts     $ (2,935,993 )   $ 7,140,215  
Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Dry Bulk Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 9,477,594   $ 36,924,759  
Derivatives   Location of Gain (Loss) on Derivatives   Realized
Loss on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Dry Bulk Index Rates Market Risk   Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ (31,400,798 )   $ 13,609,790  
Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Crude Oil Tanker Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 96,553   $ (12,008 )
Derivatives   Location of Gain (Loss) on Derivatives   Realized
Gain on
Derivatives
Recognized
in Income		     Change in
Unrealized
Gain (Loss) on Derivatives Recognized
in Income		  
Crude Oil Tanker Index Rates Market Risk   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   $ 130,178   $ (908,697 )
v3.24.0.1
Creations and Redemptions (Tables)
 6 Months Ended
Dec. 31, 2023
Creations and Redemptions [Abstract]  
Schedule of Share Transactions
Summary of Share Transactions for the Three Months Ended December 31, 2023
   Shares   Net Assets
Decrease		 
Shares Sold   25,000   $145,145 
Shares Redeemed   (6,850,000)   (50,163,369)
Net Decrease   (6,825,000)  $(50,018,224)
Summary of Share Transactions for the Three Months Ended December 31, 2022
   Shares   Net Assets
Decrease		 
Shares Sold   1,475,000   $11,574,875 
Shares Redeemed   (1,575,000)   (13,796,285)
Net Decrease   (100,000)  $(2,221,410)

 

Summary of Share Transactions for the Six Months Ended December 31, 2023
   Shares   Net Assets
Decrease		 
Shares Sold   2,825,000   $13,708,463 
Shares Redeemed   (8,650,000)   (59,822,874)
Net Decrease   (5,825,000)  $(46,114,411)
Summary of Share Transactions for the Six Months Ended December 31, 2022
   Shares   Net Assets
Increase		 
Shares Sold   4,025,000   $35,223,901 
Shares Redeemed   (2,825,000)   (26,377,835)
Net Increase   1,200,000  $8,846,066
Summary of Share Transactions for the Three Months Ended December 31, 2023
   Shares   Net Assets
Increase		 
Shares Sold   25,000   $392,110 
Shares Redeemed   -   -
Net Increase   25,000   $392,110
Summary of Share Transactions for the Six Months Ended December 31, 2023
    Shares     Net Assets
Decrease		  
Shares Sold     25,000     $ 392,110  
Shares Redeemed     (100,000 )     (1,716,210 )
Net Decrease     (75,000 )   $ (1,324,100 )
v3.24.0.1
Net Asset Value and Financial Highlights (Tables)
 6 Months Ended
Dec. 31, 2023
Net Asset Value and Financial Highlights [Abstract]  
Schedule of Net Investment Income (Loss) and Expense Ratios An individual investor’s return and ratios may vary based on the timing of their transactions in Fund Shares.
   BREAKWAVE DRY BULK   BREAKWAVE TANKER 
   SHIPPING ETF   SHIPPING ETF 
   For the Three Months Ended
December 31,		   For the Three Months Ended
December 31,		 
   2023   2022   2023   2022 
                 
Net Asset Value                
Net asset value per Share, beginning of period  $5.50   $8.75   $15.48   $- 
Net investment income (loss)   (0.02)   (0.08)   (0.16)   - 
Net realized and unrealized gain (loss)   6.16    0.71    0.72    - 
Net Income (Loss)   6.14    0.63    0.56    - 
Net Asset Value per Share, end of period  $11.64   $9.38   $16.04   $- 
Market Value per Share, end of period  $11.56   $9.19   $16.15   $- 
Ratios to Average Net Assets*                    
Expense Ratio***   4.38%   5.04%   5.24%   0.00%
Expense Ratio*** before Waiver/Assumption   4.38%   5.46%   21.42%   0.00%
Net Investment Income (Loss)   (1.30)%   (3.77)%   (3.77)%   0.00%
Total Return, at Net Asset Value**   111.64%   7.20%   3.62%   0.00%
Total Return, at Market Value**   110.56%   1.66%   2.41%   0.00%
*Percentages are annualized
**Percentages are not annualized
***Fund expenses have been capped at 3.50% of average daily net assets, plus brokerage commissions, interest expense, and extraordinary expenses, if any.
   BREAKWAVE DRY BULK  

BREAKWAVE TANKER

 
   SHIPPING ETF   SHIPPING ETF 
   For the Six Months Ended
December 31,		  

For the Six Months Ended

December 31,

 
   2023   2022   2023   2022 
                 
Net Asset Value                    
Net asset value per Share, beginning of period  $5.53   $17.06   $20.83   $- 
Net investment income (loss)   (0.03)   (0.18)   (0.37)   - 
Net realized and unrealized gain (loss)   6.14    (7.50)   (4.42)   - 
Net Income (Loss)   6.11    (7.68)   (4.79)   - 
Net Asset Value per Share, end of period  $11.64   $9.38   $16.04   $- 
Market Value per Share, end of period  $11.56   $9.19   $16.16   $- 
Ratios to Average Net Assets*                    
Expense Ratio***   4.32%   4.85%   5.24%   0.00%
Expense Ratio*** before Waiver/Assumption   4.32%   5.21%   18.27%   0.00%
Net Investment Income (Loss)   (1.14)%   (3.76)%   (4.24)%   0.00%
Total Return, at Net Asset Value**   110.49%   (45.02)%   (23.00)%   0.00%
Total Return, at Market Value**   108.29%   (46.48)%   (22.65)%   0.00%
*Percentages are annualized
**Percentages are not annualized
***Fund expenses have been capped at 3.50% of average daily net assets, plus brokerage commissions, interest expense, and extraordinary expenses, if any.
v3.24.0.1
Organization (Details) - Customer Concentration Risk [Member]
 6 Months Ended
Dec. 31, 2023
Capesize Freight Futures Contracts [Member] | Breakwave Dry Bulk Shipping ETF [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 50.00%
Panamax Freight Futures Contracts [Member] | Breakwave Dry Bulk Shipping ETF [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 40.00%
Supramax Freight Futures Contracts [Member] | Breakwave Dry Bulk Shipping ETF [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 10.00%
Freight Futures Position [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Minimum [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 10.00%
Freight Futures Position [Member] | Breakwave Dry Bulk Shipping ETF [Member] | Maximum [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 40.00%
Freight Futures Position [Member] | Breakwave Tanker Shipping ETF [Member] | Minimum [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 10.00%
Freight Futures Position [Member] | Breakwave Tanker Shipping ETF [Member] | Maximum [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 40.00%
TD20 Freight Futures Contracts [Member] | Breakwave Tanker Shipping ETF [Member]  
Organization (Details) [Line Items]  
Concentration risk percentage 10.00%
v3.24.0.1
Summary of Significant Accounting Policies (Details) - Schedule of Fair Value Hierarchy - USD ($)
Dec. 31, 2023
Jun. 30, 2023
BDRY [Member]    
Schedule of Fair Value Hierarchy [Line Items]    
Short-Term Investments [1] $ 11,704,549 $ 39,591,860
Futures Contracts 23,286,315 [2] (13,669,745) [3]
Total 34,990,864 25,922,115
BWET [Member]    
Schedule of Fair Value Hierarchy [Line Items]    
Short-Term Investments [1] 596,829 475,048
Futures Contracts (83,410) [2] 825,287 [3]
Total $ 513,419 $ 1,300,335
[1] Included in Investments in securities in the Combined Statements of Assets and Liabilities.
[2] Included in Receivable on open futures contracts in the Combined Statements of Assets and Liabilities.
[3] Included in Payable on open futures contracts in the Combined Statements of Assets and Liabilities.
v3.24.0.1
Investments (Details) - Schedule of Fair Value of Derivative Instruments - Interest Rate Risk [Member] - USD ($)
 6 Months Ended 12 Months Ended
Dec. 31, 2023
Jun. 30, 2023
Asset Derivatives [Member] | Dry Bulk Index Rates Market Risk [Member]    
Derivatives, Fair Value [Line Items]    
Combined Statements of Assets and Liabilities Receivable on open futures contracts  
Fair Value $ 23,286,315 [1]
Asset Derivatives [Member] | Crude Oil Tanker Index Rates Market Risk [Member]    
Derivatives, Fair Value [Line Items]    
Combined Statements of Assets and Liabilities   Receivable on open futures contracts
Fair Value $ 825,287
Liability Derivatives [Member] | Dry Bulk Index Rates Market Risk [Member]    
Derivatives, Fair Value [Line Items]    
Combined Statements of Assets and Liabilities Payable on open futures contracts
Fair Value $ 13,669,745 [2]
Liability Derivatives [Member] | Crude Oil Tanker Index Rates Market Risk [Member]    
Derivatives, Fair Value [Line Items]    
Combined Statements of Assets and Liabilities Payable on open futures contracts  
Fair Value [2] $ 83,410  
[1] Represents cumulative appreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.
[2] Represents cumulative depreciation of futures contracts as reported in the Combined Statements of Assets and Liabilities.
v3.24.0.1
Investments (Details) - Schedule of Effect of Derivative Instruments on the Statements of Operations - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dry Bulk Index Rates Market Risk [Member] | Breakwave Dry Bulk Shipping ETF [Member]        
Investments (Details) - Schedule of Effect of Derivative Instruments on the Statements of Operations [Line Items]        
Location of Gain (Loss) on Derivatives Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts Net realized loss on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts
Realized Gain on Derivatives Recognized in Income $ 27,728,859 $ (2,935,993) $ 9,477,594 $ (31,400,798)
Change in Unrealized Gain (Loss) on Derivatives Recognized in Income $ 17,188,035 $ 7,140,215 $ 36,924,759 $ 13,609,790
Crude Oil Tanker Index Rates Market Risk [Member] | Dry Bulk Index Rates Market Risk [Member]        
Investments (Details) - Schedule of Effect of Derivative Instruments on the Statements of Operations [Line Items]        
Location of Gain (Loss) on Derivatives Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts   Net realized gain on investments and futures and/or Change in unrealized gain (loss) on investments and futures contracts  
Realized Gain on Derivatives Recognized in Income $ 96,553   $ 130,178  
Change in Unrealized Gain (Loss) on Derivatives Recognized in Income $ (12,008)   $ (908,697)  
v3.24.0.1
Agreements (Details) - USD ($)
 1 Months Ended 3 Months Ended 6 Months Ended
Aug. 14, 2023
Aug. 13, 2023
Jun. 30, 2027
Jun. 30, 2026
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Agreements (Details) [Line Items]                
Waiver of CTA fee amount         $ 7,347   $ 20,130  
Costs and expenses         (676,775) $ (466,922) (1,424,695) $ (910,571)
Paid to bank         31,596 16,637 63,229 33,274
Distribution Services and related administrative services $ 7,150              
Sponsor annual fee         43,955 31,508 87,959 63,016
Support fees         28,622 17,422 $ 59,734 35,122
Brokerage commissions fees             3.50%  
Fund expenses, description             In addition, the assumption of Fund expenses above the BDRY Expense Cap by the Sponsor, pursuant to the undertaking (as discussed in Note 4a), amounted to $-0- and $-0- for the three months ended December 31, 2023 and 2022, respectively, and $-0- and $-0- for the six months ended December 31, 2023 and 2022, respectively.  
Total expenses         758,744 505,629 $ 1,605,556 976,903
Fund expenses             $ 160,731  
BDRY [Member]                
Agreements (Details) [Line Items]                
Distributor, description             BDRY pays the Sponsor an annual fee for wholesale support services of $25,000 plus 0.12% of BDRY’s average daily net assets, payable monthly.  
BDRY [Member] | Sponsors Advisory Services [Member]                
Agreements (Details) [Line Items]                
Management fee expense         125,000   $ 125,000  
ETF Managers Group Commodity Trust I [Member] | Sponsors Advisory Services [Member]                
Agreements (Details) [Line Items]                
Advisory services management fees percentage             1.45%  
Fund expenses annual rate percentage             3.50%  
BDRY [Member]                
Agreements (Details) [Line Items]                
Waiver of CTA fee amount         0 38,707 $ 0 66,332
Costs and expenses         650,217 505,629 1,351,888 976,903
Paid to bank         16,576 16,637 33,173 33,274
Distribution Services and related administrative services         3,944 3,959 7,893 7,918
Support fees         24,094 17,422 $ 50,112 35,122
Brokerage commissions fees             0.40%  
Brokerage commissions         164,318 142,544 $ 356,616 252,166
Trustee fees         628 1,260 $ 1,256 2,520
Percentage of brokerage commissions and fees             3.50%  
BWET [Member]                
Agreements (Details) [Line Items]                
Average daily net assets, percentage             0.30%  
Management fee expense         50,000   $ 50,000  
Advisory services management fees percentage             1.45%  
Fund expenses annual rate percentage             3.50%  
Waiver of CTA fee amount         7,347   $ 20,130  
Future repayments             27,704  
Costs and expenses         74,622   160,731  
Paid to bank         15,020   30,056  
Distribution Services and related administrative services         3,927   7,874  
Sponsor annual fee             $ 15,000  
Sponsor annual fee percentage             0.15%  
Support fees         4,528   $ 9,622  
Brokerage commissions fees             1.35%  
Brokerage commissions         8,823   $ 24,327  
Trustee fees         628   1,256  
Total expenses         108,527   $ 253,668  
Fund expenses         74,622      
Average Assets Under Management [Member]                
Agreements (Details) [Line Items]                
Advisory services management fees percentage             0.05%  
Annual fee payable             $ 45,000  
Assets under management percentage             0.01%  
Custody fees             $ 4,800  
Forecast [Member]                
Agreements (Details) [Line Items]                
Future repayments     $ 20,130 $ 7,574        
Sponsor [Member] | BDRY [Member]                
Agreements (Details) [Line Items]                
Waiver of CTA fee amount         $ 0 $ 38,707 $ 0 $ 66,332
Sponsor [Member]                
Agreements (Details) [Line Items]                
Average daily net assets, percentage             0.15%  
ETFMG Financial LLC [Member] | Sponsors Advisory Services [Member]                
Agreements (Details) [Line Items]                
Administrative and other expenses absorbed by sponsor   $ 15,000            
Average daily net assets, percentage   0.02%            
v3.24.0.1
Creations and Redemptions (Details)
Dec. 31, 2023
USD ($)
shares
Creations and Redemptions (Details) [Line Items]  
Number of shares | shares 25,000
Breakwave Tanker Shipping ETF [Member]  
Creations and Redemptions (Details) [Line Items]  
Transaction fee | $ $ 300
v3.24.0.1
Creations and Redemptions (Details) - Schedule of Share Transactions - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Breakwave Dry Bulk Shipping ETF [Member]        
Principal Transaction Revenue [Line Items]        
Shares Sold 25,000 1,475,000 2,825,000 4,025,000
Shares Sold, Net Assets Decrease $ 145,145 $ 11,574,875 $ 13,708,463 $ 35,223,901
Shares Redeemed (6,850,000) (1,575,000) (8,650,000) (2,825,000)
Shares Redeemed, Net Assets Decrease $ (50,163,369) $ (13,796,285) $ (59,822,874) $ (26,377,835)
Net Increase (6,825,000) (100,000) (5,825,000) 1,200,000
Net Increase, Net Assets Decrease $ (50,018,224) $ (2,221,410) $ (46,114,411) $ 8,846,066
Breakwave Tanker Shipping ETF [Member]        
Principal Transaction Revenue [Line Items]        
Shares Sold 25,000   25,000  
Shares Sold, Net Assets Decrease $ 392,110   $ 392,110  
Shares Redeemed   (100,000)  
Shares Redeemed, Net Assets Decrease   $ (1,716,210)  
Net Increase 25,000   (75,000)  
Net Increase, Net Assets Decrease $ 392,110   $ (1,324,100)  
v3.24.0.1
Risk (Details)
 6 Months Ended
Dec. 31, 2023
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member]  
Risk (Details) [Line Items]  
Concentration risk, percentage 10.00%
v3.24.0.1
Net Asset Value and Financial Highlights (Details)
Dec. 31, 2023
Net Asset Value and Financial Highlights [Line Items]  
Percentage of fund expenses capped 3.50%
Breakwave Dry Bulk Shipping ETF [Member]  
Net Asset Value and Financial Highlights [Line Items]  
Percentage of fund expenses capped 3.50%
v3.24.0.1
Net Asset Value and Financial Highlights (Details) - Schedule of Net Investment Income (Loss) and Expense Ratios - $ / shares
 3 Months Ended 6 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Breakwave Dry Bulk Shipping ETF [Member]        
Net Asset Value        
Net asset value per Share, beginning of period $ 5.5 $ 8.75 $ 5.53 $ 17.06
Net investment income (loss) (0.02) (0.08) (0.03) (0.18)
Net realized and unrealized gain (loss) 6.16 0.71 6.14 (7.5)
Net Income (Loss) 6.14 0.63 6.11 (7.68)
Net Asset Value per Share, end of period 11.64 9.38 11.64 9.38
Market Value per Share, end of period $ 11.56 $ 9.19 $ 11.56 $ 9.19
Ratios to Average Net Assets*        
Expense Ratio [1],[2] 4.38% 5.04% 4.32% 4.85%
Expense Ratio before Waiver/Assumption [1],[2] 4.38% 5.46% 4.32% 5.21%
Net Investment Income (Loss) [2] (1.30%) (3.77%) (1.14%) (3.76%)
Total Return, at Net Asset Value [2],[3] 111.64% 7.20% 110.49% (45.02%)
Total Return, at Market Value [2],[3] 110.56% 1.66% 108.29% (46.48%)
Breakwave Tanker Shipping ETF [Member]        
Net Asset Value        
Net asset value per Share, beginning of period $ 15.48 $ 20.83  
Net investment income (loss) (0.16) (0.37)  
Net realized and unrealized gain (loss) 0.72 (4.42)  
Net Income (Loss) 0.56 (4.79)  
Net Asset Value per Share, end of period 16.04   16.04  
Market Value per Share, end of period $ 16.15 $ 16.16  
Ratios to Average Net Assets*        
Expense Ratio [1],[2] 5.24% 0.00% 5.24% 0.00%
Expense Ratio before Waiver/Assumption [1],[2] 21.42% 0.00% 18.27% 0.00%
Net Investment Income (Loss) [2] (3.77%) 0.00% (4.24%) 0.00%
Total Return, at Net Asset Value [2],[3] 3.62% 0.00% (23.00%) 0.00%
Total Return, at Market Value [2],[3] 2.41% 0.00% (22.65%) 0.00%
[1] Fund expenses have been capped at 3.50% of average daily net assets, plus brokerage commissions, interest expense, and extraordinary expenses, if any.
[2] Percentages are annualized
[3] Percentages are not annualized
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