AUM for Digital Asset Exchange-Traded Products Surged 67% in Q1, 34% Higher Than YTD Asset Prices

Rhea-AI Summary

Fineqia International Inc. reported a significant 67% increase in Assets Under Management (AUM) for digital currency Exchange Traded Products (ETPs) in Q1 2023, reaching $33.3 billion, up from $20 billion. This growth coincided with a 50% rise in the overall cryptocurrency market value, which surged to $1.19 trillion from $800 billion. Major contributors to this increase were Bitcoin and Ethereum, with prices rising 71% and 52%, respectively. The company noted strong investor interest and net inflows into digital asset ETPs, with a 17% month-over-month increase in AUM in March. Notably, ETPs holding Bitcoin and Ethereum accounted for 93% of total digital asset AUM. Fineqia's analysis tracked 160 ETPs during the quarter, reflecting positive momentum in the cryptocurrency market.

Positive

• 67% increase in ETP AUM to $33.3 billion in Q1 2023.
• Overall cryptocurrency market value rose to $1.19 trillion.
• Strong performance driven by Bitcoin and Ethereum, up 71% and 52% respectively.
• Strong investor interest indicated by significant net inflows into digital asset ETPs.

Negative

• None.

LONDON, April 12, 2023 /PRNewswire/ - Fineqia International Inc.'s (the "Company" or "Fineqia") (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) analysis of global Exchange Traded Products (ETPs) with digital currencies as underlying assets, revealed a 67% increase in the value of Assets Under Management (AUM) during the first quarter of 2023. The cryptocurrency market value rose 50% during the same period, reflecting a 34% premium in ETP investment inflows and growth relative to crypto asset valuations.

Total crypto ETP AUM increased to $33.3 billion from $20 billion during Q1, while the overall value of cryptocurrencies rose to $1.19 trillion from $800 billion, according to Fineqia Research. The AUM increase was predicated on the year to date (YTD) rise in the prices of Bitcoin (BTC) and Ethereum (ETH), which increased 71% and 52% respectively, and accompanying capital inflows. Since ETPs holding BTC and ETH jointly account for 93% of digital asset ETP AUM, this high weighting lent itself to the significant rise in AUMs during Q1.

"Upward momentum was the hallmark of the quarter," said Fineqia CEO Bundeep Singh Rangar. "Our research shows strong net inflows for digital asset ETPs, indicating renewed investor interest."

During the month of March, the crypto ETP AUM increased 17% from $28.3 billion. That was higher than the 11% rise in the cryptocurrency prices from $1.07 trillion during the same month.

The price of Bitcoin (BTC) reached $28.500 on Mar.31, a 21% increase to about $23.500 recorded on Feb.28. In the same period, AUM of ETPs holding BTC rose 21% to $23.2 billion from 19.2$ billion. During March, Ethereum (ETH) price increased to $1.825 from about $1.650, an 11% rise in value. The AUM of Ethereum (ETH) denominated ETPs closely followed with an 11% increase to $7.6 billion on Mar.31 from $6.85 billion on Feb.28.

ETPs representing alternative coins remained stable for the second month in a row, recording only a 1% increase, and those with a basket of cryptocurrencies went up by 14%.

ETPs are an overall category that can include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). Fineqia Research tracked 160 ETPS during the quarter and adjusts for those ETPs started or shut down during the periods analysed.

All references to price are quoted in USD, and all cryptocurrency prices are sourced from CoinMarketCap.

Data referenced on ETP and ETF AUM were compiled from publicly available sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc., and TrackInSight SAS by Fineqia's in house research department.

About Fineqia International

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, and fintech.

View original content to download multimedia:https://www.prnewswire.com/news-releases/aum-for-digital-asset-exchange-traded-products-surged-67-in-q1-34-higher-than-ytd-asset-prices-301795377.html

SOURCE Fineqia International Inc.

FAQ

What was the increase in AUM for Fineqia's digital asset ETPs in Q1 2023?

Fineqia's digital asset ETPs experienced a 67% increase in AUM, reaching $33.3 billion.

How did the cryptocurrency market perform in the first quarter of 2023?

The overall cryptocurrency market value rose by 50%, reaching $1.19 trillion.

What contributed to the increase in AUM for digital asset ETPs?

The increase was driven by significant rises in Bitcoin and Ethereum prices, which were up 71% and 52%, respectively.

What percentage of digital asset ETP AUM is held in Bitcoin and Ethereum?

ETPs holding Bitcoin and Ethereum account for 93% of digital asset ETP AUM.