COtwo Advisors Physical European Carbon Allowance Trust (CTWO) is a commodity trust that holds European Union Allowances (EUAs), the emissions permits traded under the EU Emissions Trading System. The Trust makes money by charging shareholders a Sponsor's management fee, which is the only ordinary expense paid by the Trust, against assets consisting entirely of physical EUAs held through the Union Registry. The Trust is sponsored and managed by COtwo Advisors LLC, headquartered at 140 Elm Street, Suite 6, New Canaan, CT 06840, with Ronald Gutstein serving as Chief Executive Officer since inception. As of September 30, 2025, Lepercq De Neuflize Asset Management LLC held 79,712 shares, representing 79.7% of shares outstanding, indicating high shareholder concentration. The Trust files annual reports with the SEC and had audit fees of $40,000 for the year ended November 30, 2025. NAV per share is calculated by valuing the Trust's EUAs, subtracting accrued liabilities, and dividing by shares outstanding.

Revenue model

The Trust's only ordinary expense paid directly by the Trust is the Sponsor's management fee charged against Trust assets. No transactional, subscription, or ad-supported revenue streams are disclosed. The Trust does not generate operating income from trading EUAs; shareholder returns derive from changes in EUA market value.

Products and services

The Trust holds physical European Union Allowances (EUAs), each of which entitles the holder to emit one tonne of CO2 equivalent under the EU Emissions Trading System. EUAs are stored in accounts within the Union Registry. The Trust issues and redeems shares in baskets through Authorized Participants.

Customers and end markets

The Trust's shares are held by institutional and individual investors seeking exposure to EU carbon allowance prices. As of September 30, 2025, Lepercq De Neuflize Asset Management LLC held 79.7% of shares outstanding. The secondary EUA market sees trading volumes in excess of €2 billion daily on average, per the 10-K filed 2026-03-02.

Value-chain role

The Trust acts as a passive holding vehicle for physical EUAs. COtwo Advisors LLC serves as Sponsor, an Administrator handles NAV calculation and operational recordkeeping, a Cash Custodian holds cash, and the Union Registry holds the EUAs. Authorized Participants facilitate share creation and redemption.

Geographic exposure

The Trust's underlying assets are EUAs governed by the EU Emissions Trading System. The Sponsor is domiciled in New Canaan, CT, USA. EUA spot trading occurs on the European Energy Exchange (EEX) and futures trade on ICE Endex.

Source: SEC 10-K, filed 2026-03-02

Industry: Finance Services