Catching up With Carbon

Back in late 2011 we highlighted then little-known GRN (iPath Global Carbon ETN, Expense Ratio 0.75%) here, and after all of this time, the fund has finally seen a substantial uptick in trading activity lately amid an impressive run up in price.

Now averaging more than 13,000 shares traded daily, the sole way to play the Carbon credits/trading market in the ETP space is clearly in play based on the larger volume days we have witnessed in the past couple weeks.

Visual bid/ask spreads in the fund remain rather wide, as well asthe potential for larger intraday swings on a percentage basis based on a simple examination of daily candlestick charts for example, but for perhaps an esoteric market such as this in Carbon, this should be plenty expected.

We have not seen any notable asset flows via creation activity recently in GRN yet, but given what seems like a jump in institutional and trading interest in the fund, this will likely follow at some point in the near term. GRN still only has about $3 million in overall assets under management.

Today, the fund is off about 2% but within shouting distance of its intraday high of $9.84 that was touched just seven trading sessions ago, which is the highest the fund has traded since late 2012.