Worldwide Digital Asset Based Exchange Traded Products AUM Grew 75% YTD, 2.5X Above Underlying Value

Rhea-AI Summary

Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) reports that global Exchange Traded Products (ETPs) with digital assets as underlying collateral saw a 75% increase in Assets Under Management (AUM) year-to-date, reaching $87 billion. This growth outpaced the underlying digital assets market cap rise of 29% by more than 2.5 times.

In July, despite a 6% drop in the total digital assets market cap, ETPs' AUM decreased by only 0.9%. Bitcoin (BTC) ETPs grew by 2%, while Ethereum (ETH) ETPs declined by 14.8%. The launch of ETH Spot ETFs on July 23rd saw initial outflows, similar to the pattern observed with BTC Spot ETFs launch.

The total number of ETPs increased by 48 to 210 since January, with 16 new ETPs added in July alone, largely due to ETH Spot ETFs launch.

Positive

• Global ETPs AUM increased by 75% YTD to $87 billion
• ETPs' AUM growth outpaced underlying digital assets market cap rise by 2.5 times
• BTC ETPs AUM grew by 2% in July
• Total number of ETPs increased by 28% since January
• BTC Spot ETFs saw net inflows of approximately $17.5 billion since inception

Negative

• ETH ETPs AUM declined by 14.8% in July
• Grayscale Ethereum Trust's AUM decreased by approximately 40% in July
• ETH Spot ETFs experienced about $2 billion in outflows from Grayscale Ethereum Trust

London, United Kingdom--(Newsfile Corp. - August 8, 2024) - Fineqia International Inc. (CSE: FNQ) (OTC: 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) year-to-date (YTD) increased to $87 billion, marking a 75% increase from $49.5 billion.

The growth in ETPs' AUM outpaced the rise in the value of underlying digital assets year-to-date more than 2.5 times. ETPs' AUM increased by 75%, compared to a 29% rise in the overall digital assets market cap. This premium growth continued into July, following strong performances in Q1 and Q2.

In July, the AUM of ETPs holding digital assets as their underlying decreased by 0.9%, down from $87.9 billion at the end of June. During the same period, the total digital assets market cap fell by 6%, dropping to $2.29 trillion from $2.43 trillion at the end of June. The substantial premium is still attributed to the net inflows observed for BTC Spot ETFs in July, bringing the total net inflow since inception to approximately $17.5 billion.

In July, BTC's price saw an increase of 0.4%, rising to $62,075 from $61,850 at the end of June. Concurrently, the AUM of ETPs with BTC as the underlying asset grew by 2%, reaching $68.9 billion from $67.5 billion at the end of June. This data suggests net inflows into BTC ETPs for July, driven primarily by strong inflows into BTC Spot ETFs in the United States.

"In the recent turbulent skies of the market, BTC ETPs are soaring like eagles," said Fineqia's CEO Bundeep Singh Rangar. "Their strength and resilience continue to lift them above the fray, pulling in investors along the way."

In July, Ethereum (ETH) saw its value decrease by 12%, dropping to $3,000 from $3,409 at the end of June. During the same period, the AUM of ETPs holding ETH as the underlying asset declined by 14.8%, falling to $12 billion from $14 billion.

ETH Spot ETFs began trading on July 23rd and recorded about $500 million in net outflows by the end of the month. This trend mirrors the pattern seen with the launch of BTC Spot ETFs, where inflows into the newly launched ETFs were partially offset by outflows from the Grayscale Bitcoin Trust (GBTC), which was converted into an ETF. In the first three weeks of trading, BTC Spot ETFs saw a cumulative net inflow of approximately $350 million. Once outflows from GBTC stabilised, the net inflow began to rise significantly.

Similarly, Grayscale Ethereum Trust (ETHE) experienced strong outflows which surpassed the cumulative inflow observed for the newly launched ETFs. By the end of July, the newly launched ETH ETFs had seen about $1.5 billion in net inflows, while ETHE experienced approximately $2 billion in outflows.

Less favourable market conditions compared to the BTC Spot ETFs launch may have reduced the pace of net inflows during the initial trading days while also accelerating outflows. In July, Grayscale Ethereum Trust's AUM decreased by approximately 40%, dropping from $10.2 billion at the end of June to $6 billion. This indicates that the net outflows from ETPs holding ETH as the underlying asset are due to the outflows from ETHE. If the trend seen with BTC Spot ETFs repeats, net inflows are expected to increase and attract new capital into the market once ETHE outflows begin to decline.

"As Ethereum ETFs take the stage, they're laying down tracks for others to follow," said Fineqia's CEO Bundeep Singh Rangar. "Their launch paves the way for other digital assets to be adopted by the ETF industry."

ETPs representing an index of alternative coins rose 2.2% in AUM during July, to $3.3 billion, from $3.23 billion recorded at the end of June. ETPs representing a diversified basket of cryptocurrencies decreased by 4.9% in July, to $2.94 billion from $3.09 billion recorded at the end of June.

The total number of ETPs increased by 48 to 210, or 28% more, than those of Jan.1 this year. In July alone, the number of ETPs rose by 16, largely driven by the launch of ETH Spot ETFs, which contributed 8 new ETPs to the total.

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 210 as of the end of July, an increase of xx compared with the same period in 2023.

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

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/219246

FAQ

What was the YTD increase in AUM for digital asset-based ETPs according to Fineqia (FNQQF)?

According to Fineqia (FNQQF), the Assets Under Management (AUM) for global Exchange Traded Products (ETPs) with digital assets as underlying collateral increased by 75% year-to-date, reaching $87 billion.

How did the growth of ETPs' AUM compare to the underlying digital assets market cap in 2024?

The growth in ETPs' AUM outpaced the rise in the value of underlying digital assets by more than 2.5 times. ETPs' AUM increased by 75%, compared to a 29% rise in the overall digital assets market cap.

What was the performance of Bitcoin (BTC) and Ethereum (ETH) ETPs in July 2024 according to Fineqia (FNQQF)?

According to Fineqia (FNQQF), in July 2024, Bitcoin (BTC) ETPs AUM grew by 2%, reaching $68.9 billion. In contrast, Ethereum (ETH) ETPs AUM declined by 14.8%, falling to $12 billion.

How many new ETPs were added in July 2024, and what was the total number according to Fineqia's (FNQQF) report?

According to Fineqia's (FNQQF) report, 16 new ETPs were added in July 2024, bringing the total number of ETPs to 210, which is a 28% increase from January 1, 2024.