Global Digital Asset-Based Exchange Traded Products AUM Reaches All-Time High $95.4 Bn; 18% Surge in May

Rhea-AI Summary

Fineqia International announced that the global AUM of digital asset-based Exchange Traded Products (ETPs) surged to an all-time high of $95.4 billion in May, marking an 18% increase from April's $81 billion. Year-to-date, AUM rose by 93%, up from $49.5 billion at the end of 2023. The market cap of digital assets also increased by 16.9% in May, reaching $2.68 trillion. This growth was driven by optimism over Ethereum (ETH) Spot ETFs, approved by the SEC on May 23. Bitcoin (BTC) and Ethereum recorded significant gains, with BTC increasing by 12.3% to $67,150 and ETH by 26.8% to $3,785. BTC-based ETPs saw a 15.9% rise in AUM, while ETH-based ETPs increased by 27.9%. Notably, BlackRock's BTC Spot ETF surpassed Grayscale's in AUM. ETPs for a diversified basket of cryptocurrencies and altcoins also saw substantial gains.

Positive

• AUM of digital asset-based ETPs reached an all-time high of $95.4 billion.
• 18% increase in AUM from April to May.
• Year-to-date AUM rose by 93%, up from $49.5 billion.
• Market cap of digital assets increased by 16.9% in May, reaching $2.68 trillion.
• Bitcoin price increased by 12.3% in May.
• Ethereum price surged by 26.8% in May.
• ETH Spot ETFs approved by SEC, boosting market confidence.
• BTC-based ETPs AUM rose by 15.9% in May.
• ETH-based ETPs AUM increased by 27.9% in May.
• BlackRock's BTC Spot ETF surpassed Grayscale's in AUM.

Negative

• No immediate negatives were highlighted in the press release. However, investors should remain cautious of potential volatility in the digital asset market.

London, United Kingdom--(Newsfile Corp. - June 13, 2024) - Fineqia International Inc. (CSE: FNQ) (OTC Pink: FNQQF) (FSE: FNQA) (the "Company" or "Fineqia"), 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 Assets Under Management (AUM) increased to $95.4 billion from $81 billion at the end of April, marking a 18% increase.

Year-to-date, ETPs holding digital assets have seen a 93% rise in AUM, up from $49.5 billion at the end of 2023. The total AUM recorded at the end of May represents a new all-time high for ETPs holding digital assets, surpassing the previous high of $94.4 billion recorded at the end of March.

In May, the total market value of digital assets increased by 16.9%, to approximately $2.68 trillion from $2.29 trillion. This indicates a 6.5% premium growth for ETPs compared to the underlying assets during May. While the AUM of ETPs holding digital assets rose by 93% year-to-date, the digital assets market cap increased by 51%, from $1.77 trillion. This highlights a premium growth of approximately 82% for ETPs relative to the underlying assets.

The premium observed in May can be partially attributed to the increasing confidence of market participants concerning the approval of Ethereum (ETH) Spot ETFs, which was confirmed with the approval by the U.S. Securities and Exchange Commission (SEC) on May 23, further boosting demand and positive sentiment around financial products with underlying digital assets.

"Ethereum ETFs are like the second domino in a long line," said Fineqia CEO Bundeep Singh Rangar. "What started with Bitcoin is now carrying on to ETH and paves the way for multiple altcoins to likely be approved as mainstream digital assets in the future. This is already evident in various parts of the world, fundamentally reshaping investment theses."

In May, the price of Bitcoin (BTC) rose by 12.3% to $67,150 from $60,150. Simultaneously, the AUM of ETPs with BTC as their underlying asset experienced a 15.9% increase, rising to $73.3 billion from the $63.2 billion recorded at the end of April. These figures underscore a net inflow throughout May, following a month of lower demand in April that indicated neutral flow into ETPs holding BTC.

Notably in May, BlackRock's BTC Spot ETF (IBIT) officially surpassed Grayscale's BTC Spot ETF (GBTC) in AUM. This shift reflects the ongoing trend of outflows from GBTC following its conversion from a trust to an ETF, contrasting the robust inflows into IBIT since its inception. By the end of May, both ETFs had more than $19 billion in AUM, with IBIT holding $19.7 billion and GBTC holding $19.2 billion.

Year-to-date, ETPs holding BTC tallied a 106% increase, while the BTC price rose 59.7%. This highlights a 77.6% premium in growth for financial products with BTC as the underlying asset in 2024, aptly demonstrated by the approximately $14 billion in net inflow recorded in BTC Spot ETFs across the U.S.

In May, Ethereum (ETH) saw a 26.8% increase in value, rising to $3,785 from $2,985 at the end of April. During the same period, the AUM of ETH-denominated ETPs increased by 27.9%, reaching $15.3 billion from $12 billion. Year-to-date, ETPs holding ETH have shown a 61.9% increase, while the price of ETH has risen 66.2%.

This trend is expected to reverse once the SEC approves ETH Spot ETFs for trading, leading to net inflows into financial products holding ETH and mirroring the premium growth observed for ETPs holding BTC. The start date for ETH Spot ETFs is currently expected in July or August 2024, potentially sustaining demand for digital assets ETPs in Q4 2024, resulting in additional net inflows.

ETPs representing a diversified basket of cryptocurrencies saw a 20.8% increase in AUM during May, rising to $3.25 billion from $2.8 billion at the end of April. Year-to-date, the AUM of ETPs holding a basket of cryptocurrencies has risen 44.4%, up from $2.25 billion at the beginning of 2024.

ETPs representing an index of alternative coins increased by 20.8% in May, reaching $3.59 billion from $2.97 billion at the end of April. Year-to-date, the total growth was 60.9%, up from $2.23 billion at the end of 2023. Solana (SOL) remains the dominant asset in this index, comprising almost half of the alternative coins' AUM.

ETPs include Exchange Traded Funds (ETFs), which are common in North America, and Exchange Traded Notes (ETNs) that are more popular in Europe. Fineqia Research's AUM calculation factors in the launch or closure of ETPs during any stated period. The number of tracked ETPs stood at 194 as of the end of May.

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

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.

About Fineqia International Inc.

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. Publicly listed in Canada (CSE: FNQ) with quoted symbols on the Nasdaq and the Frankfurt Stock Exchange, Fineqia's portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech. Fineqia's VC fund in formation, Glass Ventures, backs category-defining Web 3.0 and Web 4.0 companies built by world-class entrepreneurs. https://twitter.com/FineqiaPlatform and https://www.linkedin.com/company/fineqia/.

Media Contacts

Angus Campbell
Nominis Advisory
angus@nominis.co

Athraa Bheekoo
Luna PR
Athraa@lunapr.io

FOR FURTHER INFORMATION, PLEASE CONTACT:

Katarina Kupcikova, Marketing & Communications Manager
E. katarina.kupcikova@fineqia.com
T. +44 7806 730 769

FORWARD-LOOKING STATEMENTS

Some statements in this release may contain forward-looking information (as defined under applicable Canadian securities laws) ("forward-looking statements"). All statements, other than of historical fact, that address activities, events or developments that Fineqia (the "Company") believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the failure to obtain sufficient financing, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made except as may be required by applicable securities laws. The Company disclaims any intent or obligation to update any forward-looking statement except to the extent required by applicable securities laws. Crypto assets are generally unregulated, subject to sudden and significant changes in value and carry a high risk of total loss of the investment. As these are unregulated assets, investors are unlikely to have recourse to any regulatory protections or access to investor compensation schemes. If you are unsure as to the appropriateness of these assets for your circumstances, you should take independent financial and legal advice. Fineqia Inc is not a crypto asset exchange and is not registered with any Authority as such. This material is general economic commentary and does not constitute a recommendation to buy, sell or otherwise transact in any of the assets discussed.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212825

FAQ

What was the AUM of digital asset-based ETPs in May 2024?

The AUM of digital asset-based ETPs reached $95.4 billion in May 2024.

How much did the AUM of digital asset-based ETPs increase in May 2024?

The AUM of digital asset-based ETPs increased by 18% in May 2024.

What is the year-to-date growth in AUM for digital asset-based ETPs as of May 2024?

Year-to-date, the AUM for digital asset-based ETPs rose by 93%, up from $49.5 billion at the end of 2023.

How did the market cap of digital assets change in May 2024?

The market cap of digital assets increased by 16.9% in May 2024, reaching $2.68 trillion.

What was the impact of the SEC's approval of ETH Spot ETFs on the market?

The SEC's approval of ETH Spot ETFs boosted market confidence and demand for financial products with underlying digital assets.

How did Bitcoin's price and AUM in BTC-based ETPs change in May 2024?

Bitcoin's price increased by 12.3%, and the AUM in BTC-based ETPs rose by 15.9% in May 2024.

What were the changes in Ethereum's price and AUM in ETH-based ETPs in May 2024?

Ethereum's price surged by 26.8%, and the AUM in ETH-based ETPs increased by 27.9% in May 2024.

Which BTC Spot ETF surpassed Grayscale's in AUM in May 2024?

BlackRock's BTC Spot ETF surpassed Grayscale's in AUM in May 2024.

How did ETPs representing a diversified basket of cryptocurrencies perform in May 2024?

ETPs representing a diversified basket of cryptocurrencies saw a 20.8% increase in AUM in May 2024.

What are the key contributors to the AUM growth in digital asset-based ETPs?

Key contributors include the SEC approval of ETH Spot ETFs, rising Bitcoin and Ethereum prices, and increasing market confidence in digital asset investments.