The latest Commitment of Traders (CoT) report from the ICE platform, published on Wednesday morning, shows that investment funds have reduced their net long holdings (long positions minus short positions) for eight consecutive weeks.

According to market data available as of last Friday, net long positions declined by a further 13.4 million allowances, or 25.5% compared with the previous week, bringing the total down to 39 million allowances—the lowest level since late August.

Net long positions peaked in mid-January at around 126 million allowances. Since then, they have fallen by roughly 70%, pointing to a sharp decline in investor confidence in further upside and indicating a more bearish outlook for EUA prices.

The sentiment reflected in ICE’s latest report was described by Carbon Pulse as “largely unsurprising,” as it closely mirrored recent market movements, with Dec-26 EUA prices declining by 2% week-on-week.

The Commitment of Traders (CoT) report is a weekly publication released by ICE every Wednesday, providing a snapshot of positions held by different market participants based on data from the preceding Friday. The report serves as a sentiment indicator, helping traders understand how large investors and compliance buyers are positioned regarding future price movements.