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Weird Flows in a $1.3 Billion Carbon Fund Are Baffling Analysts

  • KRBN ETF saw eight consecutive days of large oscillating flows
  • EU carbon credits have been roiled after invasion of Ukraine

A major exchange-traded fund tracking carbon credits that didn’t see a single outflow during the first year of its life is suddenly seeing large sums of cash slosh in and out.

For eight days starting late February, the $1.3 billion KraneShares Global Carbon Strategy ETF (ticker KRBN) posted a big inflow one day and a similar or even-larger outflow the next. The pattern finally broke in the latest data with a $52 million withdrawal, the second exit in a row.