Priyanka
London, United Kingdom–(Newsfile Corp. – September 5, 2024) – Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) (the “Company” or “Fineqia”), a prominent digital asset and fintech investment enterprise, has announced insightful findings from its latest analysis of global Exchange Traded Products (ETPs) backed by digital assets. The report highlights a significant increase in Assets Under Management (AUM), which surged to $83.6 billion year-to-date (YTD), reflecting a substantial 69% rise from the previous $49.5 billion.
The impressive growth in ETPs’ AUM has notably outstripped the overall increase in the value of the underlying crypto assets, which only saw an 18% rise YTD. This disparity, where ETPs’ AUM expanded 3.8 times faster, underscores a robust investor interest and confidence in these financial instruments. The momentum has continued into the third quarter, following strong performances in the first two quarters.
However, August saw a slight dip in the AUM of digital asset-based ETPs, decreasing by 4% to $83.6 billion from $87.1 billion at the end of July. This was in line with a broader market correction where the total digital assets market cap fell by 8.4%, dropping to $2.09 trillion from $2.29 trillion. Despite this correction, net inflows into Bitcoin (BTC) ETPs have driven consistent growth throughout the year.
Bitcoin’s price saw a decrease of 4.9% in August, falling to $59,050 from $62,050 at the end of July. However, on a YTD basis, BTC’s price has appreciated by 39.6% from its starting point of $42,290. Correspondingly, the AUM for BTC-based ETPs dipped slightly by 1.7% in August to $67.7 billion from $68.9 billion but has seen a remarkable 90.3% growth YTD from $35.6 billion.
Regionally, Canada, Brazil, and Switzerland led the inflows in August, while BTC Spot ETFs in the U.S. maintained steady levels, keeping total inflows since inception around $17.5 billion, consistent with figures at the end of July.
“BTC ETPs are proliferating across various jurisdictions like mini-wildfires, ignited by the success of U.S.-based Bitcoin ETFs,” remarked Fineqia’s CEO Bundeep Singh Rangar. “Although the U.S. sparked the initial flame, the resulting blaze has now spread globally.”
In contrast, Ethereum (ETH) experienced a sharper decline in August, with its value dropping by 16% to $2,520 from $3,000 at July’s end. The AUM of ETPs holding ETH also decreased by 16.9%, from $12 billion to $9.9 billion during this period. Notably, ETH spot ETFs saw over $2 billion in net inflows, which were offset by approximately $2.5 billion in outflows from the Grayscale Ethereum ETF (ETHE).
ETHE marked its first day without net outflows on August 30th, with total net outflows reducing to $28 million in the last week of August from $117 million the previous week, signaling a possible slowdown in outflows. Market conditions combined with typically low trading volumes in July and August likely contributed to the slower net inflows for new ETH spot ETFs.
ETPs that represent indices of alternative cryptocurrencies also saw a decline of 4.9% in AUM during August, dropping to $3.14 billion from $3.3 billion at July’s end. Similarly, diversified cryptocurrency baskets’ ETPs saw a 5.9% decrease in AUM to $2.77 billion from $2.94 billion.
The total number of ETPs has grown significantly, increasing by 54 to 216 since January 1st this year—a 33% rise. In August alone, six new ETPs were introduced, increasing the count from 210 at July’s end.
ETPs encompass both Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). Fineqia Research’s AUM calculations take into account new launches and closures within any specified period. By the end of August, there were 216 tracked ETPs.
All pricing references are quoted in USD, with cryptocurrency prices sourced from CoinMarketCap and CoinGecko.
The referenced ETP and ETF AUM data were compiled from credible sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar Inc., and TrackInSight SAS by Fineqia’s dedicated research team.
About Fineqia International Inc.
Fineqia (www.fineqia.com) is a digital asset firm that focuses on investments in early and growth stage technology companies poised to shape the future of the Internet. Publicly listed in Canada (CSE: FNQ) and quoted on Nasdaq and Frankfurt Stock Exchange, Fineqia’s portfolio includes companies at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech innovations. Its venture capital arm, Glass Ventures, supports pioneering Web 3.0 and Web 4.0 companies created by exceptional entrepreneurs. Follow us on Twitter at https://twitter.com/FineqiaPlatform and LinkedIn at https://www.linkedin.com/company/fineqia/.
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Forward-Looking Statements
Certain statements in this release may include forward-looking information as defined under applicable Canadian securities laws (“forward-looking statements”). These statements address activities or developments that Fineqia expects or anticipates may occur in the future and are identifiable by terms like “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or similar expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in these statements. Factors include failure to secure sufficient financing and other risks disclosed in Fineqia’s public records filed with relevant securities regulators. These statements are valid only as of their date and Fineqia disclaims any obligation to update them unless required by law.
Crypto assets are generally unregulated and subject to significant value changes and high risk of total loss of investment. Investors are unlikely to have recourse to regulatory protections or compensation schemes. Independent financial and legal advice is recommended for those unsure about these assets’ appropriateness for their circumstances. Fineqia Inc. is not a crypto asset exchange and is not registered as such with any authority.
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SOURCE: Fineqia International Inc.
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