Worldwide Digital Asset-Based ETP AUM Remains 64% Ahead YTD Despite Monthly Drop

Rhea-AI Summary

Fineqia International Inc. reports a 64% growth in total Assets Under Management (AUM) for Exchange Traded Products (ETPs) with digital assets despite a monthly drop, maintaining a 24.5% premium over the digital assets market. The surge is attributed to the approval of Bitcoin (BTC) Spot ETFs in the U.S. and the launch of crypto ETFs in various countries.

Positive

• 64% growth in total AUM for ETPs holding digital assets YTD.

• Financial products backed by digital assets maintain a 24.5% premium over the digital assets market.

• Approval of Bitcoin Spot ETFs in the U.S. stimulates capital inflows into ETPs with digital assets.

• Launch of crypto ETFs in Hong Kong with more countries expected to follow suit.

Negative

• Monthly drop in total AUM from $94.4 billion to $81 billion, marking a 14.2% decrease.

• Total market value of digital assets decreased by 18.8% to $2.29 trillion from $2.82 trillion in April.

• Price decline of BTC by 13.6% and ETH by 14.9% in April affecting respective ETPs' AUM.

• ETPs representing an index of alternative coins decreased by 23.9% in AUM in April.

London, United Kingdom--(Newsfile Corp. - May 9, 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 a 64% growth in total Assets Under Management (AUM) in the year-to-date (YTD) period amid continued interest by investors. On a monthly basis, the total AUM dropped to $81 billion from $94.4 billion at the end of March, marking a 14.2% decrease.

The total market value of digital assets decreased by 18.8%, to about $2.29 trillion from $2.82 trillion in April. Even amid the market decline, financial products backed by digital assets maintained a 24.5% premium over the digital assets market, consistent with the trend seen in Q1. Year-to-date, ETPs holding digital assets rose 64% in AUM, while the digital assets market cap increased by 29.2%. This highlights a premium growth for ETPs of approximately 117% in comparison to the relative underlying.

This surge in premium is predominantly attributed to the approval of Bitcoin (BTC) Spot ETFs in the U.S., which commenced trading on Jan. 11, stimulating capital inflows into financial products featuring digital assets as underlying assets throughout Q1.

"It's fully baked now," said Bundeep Singh Rangar, CEO of Fineqia. "With the initial rise from the SEC's yeast effect having cooled off, the loaves are ready and being served on the ETF and ETN shelves across the world."

Hong Kong has recently witnessed the launch of crypto ETFs, with the U.K. poised to follow suit soon. Countries like Singapore, Japan, South Korea, and Thailand are actively constructing more conducive regulatory environments. These efforts align with those of a handful of other countries such as Australia, Brazil, Canada, Germany, Liechtenstein, and Switzerland that had previously permitted such products.

During April, the price of BTC declined by 13.6% to $60,150 from $69,650 at the end of March. Simultaneously, the AUM of ETPs with BTC as their underlying asset experienced a 13.2% decrease, dropping to $63.2 billion from the $72.8 billion recorded at the end of March. These figures emphasize a neutral flow throughout April, with the reduction in AUM perfectly reflecting the decline in the underlying asset's price. Year-to-date, ETPs holding BTC have shown a 77.7% increase, while the BTC price has risen by 42.2%. This highlights an 84% growth in premium for financial products with BTC as the underlying asset in 2024.

In April, Ethereum (ETH) saw a 14.9% decline in value, dropping to $2,985 from the $3,508 recorded at the end of March. During the same period, the AUM of ETH-denominated ETPs decreased by 16.4%, falling to $12 billion from the $14.3 billion recorded at the end of March. Year-to-date, ETPs holding ETH have shown a 26.6% increase, while the ETH price has grown by 31.1%.

This emphasizes how the growing expectation among market participants of the SEC rejecting the approval of ETH Spot ETFs in May has led to a decrease in institutional exposure to ETH in favour of BTC.

ETPs representing a diversified basket of cryptocurrencies decreased 9.5% in AUM during April, to $2.8 billion, from $3.36 billion recorded at the end of Mar. Year-to-date, AUM of ETPs holding a basket of cryptocurrencies rose 24.2% from $2.25 billion at the beginning of 2024.

ETPs representing an index of alternative coins decreased by 23.9% in April to $2.97 billion from $3.9 billion recorded at the end of March. Year-to-date, the total growth was 33.2% from $2.23 billion at the end of 2023. Solana (SOL) remains the dominant force in this index, comprising almost half of the alternative coins AUM.

In April, ETPs with SOL as the underlying asset saw a 31.4% decrease in AUM, falling to $1.29 billion from the $1.87 billion recorded at the end of March. During the same period, the SOL price dropped by 37.4%, declining to $127 from the $203 recorded at the end of March. These statistics highlight that the premium observed in April in the AUM of ETPs holding digital assets as underlying compared to the broader digital assets market value can be mainly attributed to the resilience shown by ETPs holding SOL.

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 192 as of the end of April.

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/208384

FAQ

What is the total AUM growth percentage for ETPs holding digital assets YTD?

ETPs holding digital assets saw a 64% increase in total AUM Year-to-Date.

What contributed to the surge in premium for ETPs with digital assets?

The surge is mainly attributed to the approval of Bitcoin Spot ETFs in the U.S.

Which countries have recently witnessed the launch of crypto ETFs?

Hong Kong has recently launched crypto ETFs, with the U.K. expected to follow soon.

How did the price decline of BTC and ETH impact their respective ETPs' AUM in April?

The price decline of BTC by 13.6% and ETH by 14.9% in April influenced the AUM of ETPs holding these assets.

What was the AUM change for ETPs representing an index of alternative coins in April?

ETPs representing an index of alternative coins decreased by 23.9% in AUM in April.