First US Physical Carbon Allowance ETP Launches with State Street as Provider

State Street Appointed Servicing Provider for COtwo Advisors’ First US-Listed Physical Carbon Allowance ETP

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06/25/2025 - 10:15 AM

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) today announced that it has been appointed as fund administrator and transfer agent for the COtwo Advisors Physical European Carbon Allowance Trust (NYSE Arca: CTWO)—the first US-listed exchange-traded product (ETP) backed by physical European Union Allowances (EUAs).

The CTWO fund, launched by COtwo Advisors, provides investors with direct exposure to the European Union Emissions Trading System (EU ETS), the world’s largest and most liquid carbon market. The fund is designed to offer a tax-efficient, transparent, and accessible vehicle for carbon allowance investing, with trading available on NYSE Arca.

As servicing provider, State Street will deliver a full suite of exchange traded fund (ETF) infrastructure solutions—including fund accounting, administration, and transfer agency—to provide operational efficiency, scalability, and reliability to support COtwo’s innovative fund.

“Launching CTWO with State Street as our servicing partner will help us deliver a seamless and reliable experience to investors,” said Ron Gutstein, Founder & CEO COtwo Advisors LLC. “Their deep ETF servicing capabilities and global operational scale make them an ideal partner as we expand access to the EU carbon market.”

“We are pleased to support COtwo Advisors in bringing this pioneering carbon market product to US investors,” Jeff Sardinha, head of ETF Solutions- Americas, State Street. “Our appointment reflects our commitment to delivering full-service expertise needed to support a wide range of our clients’ investment solutions.”

CTWO is structured to hold physical European Union Allowances (EUAs), avoiding the decay and tax inefficiencies associated with futures-based products. The fund also enables extended trading hours for EUA exposure via NYSE Arca, allowing investors to respond to market developments after European markets close.

For more than 30 years, State Street has been at the forefront of ETF innovation, helping shape what is now a global $14 trillion ETF marketplace. Today, State Street remains the world’s largest ETF servicer, supporting more than 2,800 ETFs across 13 countries. With fully integrated global ETF servicing capabilities, State Street enables clients to efficiently engage with the evolving ETF landscape through its proprietary technology and scalable operating model. From fund launch to ongoing operations, State Street’s solutions are designed to align with industry best practices—regardless of structure, asset class, or investment strategy.¹

About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $46.7 trillion in assets under custody and/or administration and $4.7 trillion* in assets under management as of March 31, 2025, State Street operates globally in more than 100 geographic markets and employs approximately 53,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of March 31, 2025 includes approximately $106 billion of assets with respect to SPDR^® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

¹ Source: State Street 2025 Global ETF Outlook