Fineqia International, a leading digital asset and fintech investment business, announces that its analysis of global Exchange Traded Products (ETPs) with digital assets as underlying collateral, revealed a 53% growth in total Assets Under Management (AUM) in the year-to-date (YTD) period amid continued interest by investors. On a quarterly basis, the total AUM dropped 13% in Q3, after growing 67% and 5% in Q1 and Q2 respectively.
Year-to-date, total AUM shows a premium growth of 18% compared to the underlying value of digital assets, which grew slower at 45%. In Sept., total AUM increased 1% to $30.5 billion from $30.2 billion. During the same month, the market value of digital assets rose 7%, to about $1.15 trillion from $1.08 trillion.
“Bitcoin rose in September, which contrasted price drops during the same month in recent years as well as September monthly declines this year for many traditional assets such as global bonds, US treasuries, and S&P 500 stocks,” said Fineqia CEO Bundeep Singh Rangar. “It provided investors a way to offset an otherwise challenging market.”
Bitcoin’s (BTC) price increased 4% in September, to $27,000 from $26,000 recorded on August 31. The AUM of ETPs holding BTC increased by 1.8%, to $21.7 billion from $21.3 billion. Year-to-date, the AUM of ETPs holding BTC rose 59.7%, despite a 12.7% decrease recorded in Q3. BTC price closely mirrored, falling 11.4% during Q3.
During Sept., Ethereum (ETH) rose 1.8% in value to $1,675 from $1,646 recorded at the end of August. Ethereum (ETH)-denominated ETPs AUM decreased 0.6% to $6.7 billion on Sept. 30, compared to $6.8 billion a month earlier. On a quarterly basis, the AUM of ETPs holding ETH decreased by 14.2%. Similarly, ETH prices dropped 13.3%. Year-to-date, the total AUM of ETPs holding ETH increased by 35.4%.
ETPs representing a diversified basket of cryptocurrencies decreased 3.2% in AUM during September, with a total decline of 11.5% in Q3. Despite this drop, basket ETPs registered a 32% increase in AUM on a YTD basis.
ETPs representing an index of alternative coins increased by 2.3% in September against a backdrop of a 14.2% decrease in Q3. Year-to-date, ETPs holding individual altcoins showed the weakest growth, in comparison to other digital assets categories, with a 9.5% increase in AUM.
ETPs include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). Fineqia Research’s AUM calculation factors in the launch or closure of ETPs during any stated period. The number of tracked ETPs stood at 169 as of end of September, a slight increase from 162 at the beginning of the year. All references to price are quoted in USD, and the cryptocurrency prices are sourced from CoinMarketCap. The ETP and ETF AUM data referenced in this announcement were compiled from reputable sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc., and TrackInSight SAS, by Fineqia’s dedicated in-house research department.
Fineqia (www.fineqia.com) is a digital asset business that builds and targets investments in early and growth stage technology companies that will be part of the next generation of the Internet. It also provides a platform to support and manage the issuance of debt securities in the UK. Publicly listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia’s portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech.
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