COtwo Advisors Physical European Carbon Allowance Trust Reports Financial Results for Period Ending August 31, 2025

COtwo Advisors Physical European Carbon Allowance Trust has reported its financial results for the period ending August 31, 2025, following its commencement of operations on June 17, 2025. The Trust's total assets amounted to $2,540,649, primarily consisting of investments in European Union Carbon Emission Allowances (EUAs) valued at $2,516,249. The Trust's net assets stood at $2,538,983, with a net asset value (NAV) per share of $16.93 based on 150,000 shares issued and outstanding. The Trust did not have any comparative financial statements as it had no operations prior to this fiscal period.

In terms of financial performance, the Trust reported a net investment loss of $3,721 for the three months ended August 31, 2025. This loss was attributed to expenses, including sponsor fees of $3,875, and a net realized loss of $619 from EUAs sold to cover these expenses. The Trust also recorded a net realized gain of $6,657 from foreign currency transactions, but an unrealized loss of $2,359 on its investments in EUAs contributed to a net decrease in net assets resulting from operations of $42. The NAV per share decreased slightly from $16.95 at the beginning of the period to $16.93 by the end.

Operationally, the Trust issued 150,000 shares in exchange for 30,000 EUAs during the reporting period, with no shares redeemed. The Trust's investment strategy focuses on holding EUAs, which are essential for compliance with the European Union Emissions Trading System (EU ETS). As of August 31, 2025, the Trust held 29,700 EUAs, reflecting a market value of $2,516,249. The Trust's cash and cash equivalents totaled $24,327, which is intended to cover operational expenses.

The Trust's management has indicated that the performance of EUAs is influenced by various factors, including weather conditions, economic activity, and geopolitical events. The Trust's investment objective is to reflect the performance of EUA prices, less operational expenses. Looking ahead, management expects that the primary drivers of EUA price levels will continue to be weather patterns, economic conditions in the EU, and ongoing geopolitical tensions, particularly the conflict between Ukraine and Russia.

Overall, COtwo Advisors Physical European Carbon Allowance Trust is positioned to navigate the complexities of the carbon allowance market, with a clear focus on its investment strategy and operational management. The Trust's performance will be closely monitored as it continues to establish its presence in the market for EUAs.