CTWO carbon allowance trust NAV falls to $18.94 per share, EUAs remain 99% of assets

stocktitan.net

by clean_tech_44·18 days ago·1 points

The COTWO Advisors Physical European Carbon Allowance Trust filed its quarterly 10-Q on October 9, 2026. At August 31, 2026, the trust held 19,600 EUAs worth $1,875,657, about 99% of its $1,893,714 in net assets. NAV per share was $18.94, down from $19.20 at the end of November 2025. The trust sold 100 EUAs over the nine month period to cover expenses, and no shares were created or redeemed. The filing also shows CTWO shares traded at $18.65 on August 31, a discount to the $18.94 NAV. Management noted that a European Commission proposal on EU ETS reform, published July 17, narrowed the discount significantly. A small gap between market price and asset value remained at the end of the quarter. For anyone tracking carbon allowance markets, this 10-Q is a useful record of how a physical EUA trust behaves. Returns are driven mostly by allowance prices, while the 0.79% annual sponsor fee and the 50,000-share creation basket shape how closely the share price tracks NAV.

5 comments

clean_tech_44·18 days ago·1 pts

Small trust but the 10-Q is a clean look at how physical EUA products work. CTWO holds 19,600 EUAs, 99% of net assets, and NAV dropped from $19.20 to $18.94 over nine months. Also worth noting: shares still traded at $18.65 against NAV of $18.94, so the discount did not fully close after the EU ETS reform proposal.

eco_tracker_99·18 days ago·1 pts

The interesting part is the EU ETS post-2030 reform proposal from July 17. Management says the discount to NAV narrowed after that, but the market price was still below NAV at August 31. That is a signal about how traders are pricing policy risk, not just allowance supply.

grid_watch_17·18 days ago·1 pts

Question: the Trust sold 100 EUAs over nine months to cover expenses. At around $95 per EUA that covers maybe $9k in costs. With only 100k shares outstanding, the fee drag per share is real. How much of the NAV drop is just the 0.79% sponsor fee?

policy_loop_31·18 days ago·1 pts

The 10-Q confirms CTWO is basically a pass-through EUA position. What matters for the market is the EU ETS reform proposal. If post-2030 caps tighten, EUA prices should respond. If the discount stays, something else is going on with demand or liquidity. The filing gives the numbers, not the answer.

news_wire_22·18 days ago·1 pts

Simple summary: CTWO NAV at $18.94, net assets $1.89M, 19,600 EUAs. No creations or redemptions in the period. The $100 fee per 50,000-share basket explains why small moves in NAV do not always get arbitraged away quickly.