Worldwide Digital Asset-Based ETPs AUM Surges 79% Year-to-Date; Outpacing Underlying Assets by 150%

Rhea-AI Summary

Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) reports that global Exchange Traded Products (ETPs) with underlying digital assets saw a 79% increase in Assets Under Management (AUM) year-to-date, reaching $88.8 billion in September. This growth outpaced the underlying digital assets' market value increase by 150%.

Key highlights:

• ETPs' AUM rose 6% from August to September
• Digital assets market value grew 11.3% in September
• BTC Spot ETFs saw cumulative net inflows of $18.9 billion since January
• Alternative coin and cryptocurrency basket ETPs showed positive momentum in Q3
• Bitcoin ETPs' AUM surged 102% year-to-date
• Ethereum ETPs experienced outflows, but showed signs of potential reversal

The analysis covers 219 tracked ETPs, including ETFs and ETNs, as of September's end.

Positive

• 79% increase in AUM for digital asset-based ETPs year-to-date, reaching $88.8 billion
• ETP AUM growth outpaced underlying digital assets by 150% year-to-date
• $18.9 billion cumulative net inflow for BTC Spot ETFs since January
• 102% surge in Bitcoin ETPs' AUM year-to-date
• Alternative coin and cryptocurrency basket ETPs showed positive momentum in Q3

Negative

• Ethereum ETPs experienced significant outflows, with AUM decreasing by 27.5% in Q3

London, United Kingdom--(Newsfile Corp. - October 8, 2024) - Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) (FSE: FNQA), a leading digital asset and investment business, announces that its analysis of global Exchange Traded Products (ETPs) with underlying digital assets revealed that Assets Under Management (AUM) rose to $88.8 billion in September, reflecting a 6% increase from $83.6 billion at the end of August. Year-to-date (YTD), total AUM surged 79% from $49.5 billion at the start of 2024.

In September, the market value of digital assets grew by 11.3% to $2.33 trillion, up from $2.1 trillion at the end of August. Year-to-date, the market cap of digital assets rose by 31.5% from $1.8 trillion at the end of 2023. The growth in ETPs' AUM has outpaced the rise in the value of underlying crypto assets by 150% year-to-date.

During Q3, the total AUM of ETPs holding digital assets rose 1%, reaching $88.8 billion, up from $87.9 billion at the end of Q2. Meanwhile, the overall value of the digital assets market dropped 4.2%, falling to $2.33 trillion from $2.43 trillion at the close of June. The premium growth in ETPs holding digital assets continued throughout Q3, building on trends seen in the first two quarters.

ETPs include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). The notable premium is primarily attributed to the approval of BTC Spot ETFs, which began trading on January 11, and have since seen a cumulative net inflow of about $18.9 billion.

"While BTC ETPs set the stage in the first half of the year, Q3 saw a more even playing field as altcoins and basket ETPs gained momentum," said Fineqia's CEO, Bundeep Singh Rangar. "Bitcoin planted the seeds of growth, and now the rest of the market is reaping the rewards."

ETPs holding alternative coins and cryptocurrency baskets also showed positive momentum in Q3. The AUM of ETPs tracking an index of alternative coins increased by 9.6% in Sept., reaching $3.43 billion, up from $3.14 billion in August. During Q3, the AUM grew by 6.1%, up from $3.23 billion at the end of Q2.

ETPs representing a diversified basket of cryptocurrencies saw their AUM increase by 9.6% in September, rising to $3 billion from $2.77 billion at the end of August. During Q3, the AUM fell by 2%, down from $3.1 billion at the end of Q2, suggesting that the positive trend was more concentrated in September.

Year-to-date, the AUM of ETPs holding alternative coins has increased by 53.6%, up from $2.23 billion at the end of 2023. During the same period, ETPs representing a diversified basket of cryptocurrencies saw a 34.8% rise in AUM, increasing from $2.25 billion at the start of the year.

In September, Bitcoin (BTC) price increased by 7.9%, rising to $63,725 from $59,050 at the end of August. During the same period, the AUM of BTC ETPs grew by 6.5%, rising to $72.1 billion from $67.7 billion. In Q3, BTC's price increased by 3.1% from $61,825, while the AUM of BTC ETPs rose by 6.8%, up from $67.5 billion.

Year-to-date, BTC's price has risen by 51%, to $63,725 from $42,290 at the end of 2023. During the same period, the AUM of BTC ETPs surged 102%, growing to $72.1 billion from $35.6 billion. This highlight continued positive inflows into BTC ETPs throughout Q3, extending the trend observed in Q1 and Q2.

Ethereum (ETH) price rose 3.7% in September to $2,612 from $2,519 at the end of August. During the same period, the AUM of ETH ETPs increased by 2.5%, reaching $10.2 billion from $9.9 billion. In Q3, ETH's price dropped by 23.4%, down from $3,409 at the end of Q2, and the AUM of ETH-denominated ETPs decreased by 27.5%, falling from $14 billion.

Year-to-date, ETH's price grew by 14.7%, increasing to $2,612 from $2,277 at the end of 2023. During the same period, the AUM of ETH ETPs increased by 7.8%, rising to $10.2 billion from $9.4 billion at the start of the year.

The data suggests that the substantial outflows from the Grayscale Ethereum ETF (ETHE), following its conversion from a trust, caused net outflows in ETH ETPs. Newly launched ETPs have not fully offset these outflows. In the last week of September, however, ETH ETPs recorded approximately $85 million of inflows that marked the first positive week after six consecutive weeks of outflows. This could indicate a trend reversal, with inflows possibly picking up in the coming weeks.

Fineqia Research's AUM calculation factors in the launch or closure of ETPs during any stated period. The number of tracked ETPs stood at 219 as of the end of September.

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/.

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/225968

FAQ

What was the total AUM for digital asset-based ETPs in September 2024?

The total Assets Under Management (AUM) for digital asset-based Exchange Traded Products (ETPs) reached $88.8 billion in September 2024, according to Fineqia International Inc. (OTC: FNQQF).

How much did Bitcoin ETPs' AUM grow year-to-date as of September 2024?

Bitcoin ETPs' AUM surged by 102% year-to-date, growing from $35.6 billion at the end of 2023 to $72.1 billion in September 2024, as reported by Fineqia International Inc. (OTC: FNQQF).

What was the cumulative net inflow for BTC Spot ETFs since their approval in January 2024?

According to Fineqia International Inc. (OTC: FNQQF), BTC Spot ETFs saw a cumulative net inflow of approximately $18.9 billion since they began trading on January 11, 2024.

How did Ethereum ETPs perform in Q3 2024?

Ethereum ETPs experienced significant outflows in Q3 2024, with their AUM decreasing by 27.5%, falling from $14 billion at the end of Q2 to $10.2 billion by the end of September, as reported by Fineqia International Inc. (OTC: FNQQF).