London, United Kingdom–(Newsfile Corp. – September 5, 2024) – Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) (“Fineqia” or “the Company”), a premier digital asset and fintech investment firm, has disclosed an insightful analysis revealing a remarkable year-to-date (YTD) increase in Assets Under Management (AUM) for Exchange Traded Products (ETPs) with digital assets as the underlying collateral. This surge has propelled the AUM to an impressive $83.6 billion, marking a significant 69% rise from the previous figure of $49.5 billion.

The expansion in ETPs’ AUM has significantly outpaced the overall growth in the value of digital assets, demonstrating a more than 3.8-fold increase. Specifically, while ETPs’ AUM surged by 69%, the broader digital assets market cap saw an 18% uptick. This substantial premium growth has been consistent throughout Q3, following robust performances in both Q1 and Q2.

In August, however, the AUM of ETPs holding digital assets experienced a slight dip of 4%, decreasing from $87.1 billion at the end of July to $83.6 billion. Concurrently, the total digital assets market cap fell by 8.4%, dropping from $2.29 trillion to $2.09 trillion. Despite these fluctuations, the premium in ETPs’ growth remains robust, largely driven by net inflows into Bitcoin (BTC) ETPs, which have been a key growth catalyst throughout the year.

The price of BTC itself dropped by 4.9% in August, from $62,050 at the end of July to $59,050. Nevertheless, BTC’s price has seen a substantial YTD increase of 39.6%, rising from $42,290 at the beginning of the year. The AUM for BTC-based ETPs saw a minor decline of 1.7% in August, falling from $68.9 billion in July to $67.7 billion, yet it has still achieved an impressive YTD growth of 90.3%, up from $35.6 billion.

Geographically, the most significant inflows during August were recorded in Canada, Brazil, and Switzerland. Meanwhile, BTC Spot ETFs in the U.S. maintained steady inflows, keeping the total inflow since inception around $17.5 billion, consistent with figures from the end of July.

“BTC ETPs are spreading like mini-wildfires across different jurisdictions, fueled by the success of US Bitcoin ETFs,” commented Bundeep Singh Rangar, CEO of Fineqia. “The US might have struck the match, but the blaze is now global.”

Ethereum (ETH) faced a challenging month in August, with its value decreasing by 16% from $3,000 at the end of July to $2,520. Correspondingly, the AUM for ETPs holding ETH as an underlying asset fell by 16.9%, dropping from $12 billion to $9.9 billion. Despite this decline, ETH spot ETFs managed to attract over $2 billion in net inflows; however, these gains were counterbalanced by approximately $2.5 billion in outflows from the Grayscale Ethereum ETF (ETHE).

ETHE noted its first day without net outflows on August 30th and experienced a significant reduction in net outflows during the last week of August, totaling $28 million compared to $117 million the previous week. This suggests a potential slowdown in outflows. The typically low trading activity during July and August, combined with less favorable market conditions, may have contributed to slower net inflows into newly issued ETH spot ETFs during their initial trading weeks.

Moreover, ETPs representing an index of alternative coins saw a 4.9% decrease in AUM during August, falling from $3.3 billion to $3.14 billion by month’s end. ETPs that represent a diversified basket of cryptocurrencies also saw a decline of 5.9% in AUM, reducing from $2.94 billion to $2.77 billion.

The total number of ETPs rose significantly by 54 to reach 216 by the end of August, marking a 33% increase since January 1st this year. In August alone, six new ETPs were added to the market.

ETPs encompass both Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). Fineqia Research’s AUM calculation takes into account the launch or closure of ETPs over any given period. As of the end of August, there were 216 tracked ETPs.

All price references are quoted in USD, with cryptocurrency prices sourced from CoinMarketCap and CoinGecko.

The data referenced regarding ETP and ETF AUM was compiled from reputable sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc., and TrackInSight SAS by Fineqia’s dedicated in-house research team.

About Fineqia International Inc.

Fineqia (www.fineqia.com) is a forward-thinking digital asset company specializing in investments in early and growth-stage technology enterprises poised to shape the future internet landscape. Publicly traded in Canada (CSE: FNQ) with listings on Nasdaq and the Frankfurt Stock Exchange, Fineqia’s investment portfolio includes businesses leading advancements in tokenization, blockchain technology, NFTs, AI, and fintech sectors. Fineqia’s emerging VC fund, Glass Ventures, supports pioneering Web 3.0 and Web 4.0 companies helmed by visionary entrepreneurs.

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FORWARD-LOOKING STATEMENTS

This release may contain forward-looking statements as defined under applicable Canadian securities laws. These statements are predictive rather than definitive and reflect expectations for future events or developments that Fineqia anticipates or believes will occur (including potential acquisitions and financings). Such statements are identifiable by terms like “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, or “project”. Forward-looking statements are inherently subject to risks and uncertainties beyond the Company’s control that may cause actual results to differ materially from those expressed or implied. These include financing challenges and other risks detailed in public disclosures filed with relevant securities regulators. Forward-looking statements speak only as of their date unless legally required updates are made.

Investors should note that crypto assets are unregulated and can experience sudden value changes and high risk of total loss. Regulatory protections or compensation schemes are generally unavailable for these assets. Prospective investors should seek independent financial and legal advice regarding these investments’ suitability for their circumstances.

Fineqia Inc. is not a crypto asset exchange and is not registered as such with any authority. This material is intended for general economic commentary and does not constitute a recommendation for any transaction involving the discussed assets.

For more information on this press release’s source version:
https://www.newsfilecorp.com/release/222233