Fineqia International, a digital asset and fintech investment business, announces that its analysis of global Exchange Traded Products (ETPs) with digital assets as underlying collateral revealed a 51% growth in total Assets Under Management (AUM) in the year-to-date (YTD) period amid renewed interest by investors.
Year-to-date, total crypto AUM shows a premium growth “of 63.5% compared to the underlying value of digital assets, which grew slower at 31.5% since the beginning of the year.”
In August, total crypto AUM “decreased 11% to $30.2 billion from $34 billion.” The decrease mirrored the drop “in values of digital assets during the same period.” The market value of crypto assets “fell 11%, to about $1.05 trillion from $1.17 trillion.”
Fineqia CEO Bundeep Singh Rangar said:
“While the momentum so far this year has been quite positive, August reflects historic weakness in the digital asset and capital markets. The S&P 500 dropped 1.4% last month, for example, lowering its YTD gains to 18.8%. We’ll be on the lookout for changes in the months ahead.”
Bitcoin’s (BTC) price “decreased 11% in August, to $26,000 from $29,200 recorded on July 31.”
The AUM of ETPs holding BTC “correspondingly dropped by 10.7%, to $21.3 billion from $23.8 billion. Ethereum (ETH) fell 11.2% in value to $1,646 from about $1,854. ETH-denominated ETPs AUM decreased 10.9% to $6.8 billion on Aug. 31, compared with $7.6 billion a month earlier.”
Grayscale, the American digital asset management company, “won a lawsuit against the SEC concerning the rejection of its Bitcoin Spot ETF filing.” The SEC is now called to re-evaluate the rejection as the judge “claimed the reasons were inadequate.” Despite this victory, in August the cumulative AUM for the Grayscale Trusts “decreased 10.7%, to $21.9 billion from $24.5 recorded at the end of July.”
This performance closely “mirrored the digital asset market and the ETPs digital asset market, showing the decision did not cause any major inflow for Grayscale.” The discount for Grayscale Bitcoin Trust (GBTC) narrowed to about 20%, however, “marking the lowest discount since the beginning of 2022.”
ETPs representing a basket of cryptocurrencies “decreased 13.1% in AUM, and ETPs representing alternative coins index decreased 16.2%.”
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 163 as of the end of August.”
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.”
As noted in the update, Fineqia 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.”