Investment funds trimmed their net long positions, the difference between bullish and bearish bets, for a second consecutive week, according to the latest Commitment of Traders (CoT) report released by ICE on Wednesday morning.

Data available as of last Friday showed that net long holdings fell by 4.2 million allowances from the previous week, a decline of around 4.5%, bringing the total to 45 million allowances, the lowest level in a month.

Net long positions peaked at around 126 million allowances in mid-January. Since then, they have fallen by roughly two-thirds to 45 million allowances, reflecting a marked deterioration in market sentiment and a more bearish outlook for EUA prices. Nevertheless, investors continue to maintain sizeable net long exposure, suggesting that many still expect prices to recover over the medium to long term.

The decline in net length was primarily driven by a significant reduction in long positions, which fell to 65.6 million allowances. By contrast, short positions remained broadly stable, increasing by just 0.6 million allowances over the same period.

“Investors remain reluctant to express a strong bearish view at current price levels, suggesting downside expectations remain limited despite the lack of an immediate bullish catalyst,” BBVA analysts said.