Fineqia International, a leading digital asset and fintech investment firm, announces that its analysis of global Exchange Traded Products (ETPs) with digital assets as underlying collateral shows a 53% growth in total assets under management (AUM) has brought light in the past year. date (YTD) period amid continued investor interest. On a quarterly basis, total assets under management fell 13% in the third quarter, after growing 67% and 5% in the first and second quarters respectively.
Year-to-date, total assets under management show premium growth of 18% compared to the underlying digital asset value, which grew more slowly at 45%. In September, total assets under management rose 1% from $30.2 billion to $30.5 billion. In the same month, the market value of digital assets increased by 7%, from $1.08 trillion to approximately $1.15 trillion.
“Bitcoin rose in September, contrasting with same-month price declines in recent years and monthly declines in September this year for many traditional assets such as global bonds, US government bonds and S&P 500 stocks,” said Fineqia CEO Bundeep Singh Rangar. “It offered investors a way to offset an otherwise challenging market.”
The price of Bitcoin (BTC) rose 4% in September, from $26,000 on August 31 to $27,000. The AUM of ETPs holding BTC increased 1.8%, from $21.3 billion to $21.7 billion. Year-to-date, the AUM of ETPs holding BTC has increased by 59.7%, despite a 12.7% decline in the third quarter. The price of BTC closely matched, falling 11.4% in the third quarter.
In September, Ethereum (ETH) rose 1.8% in value to $1,675, compared to $1,646 at the end of August. Ethereum (ETH)-denominated ETPs AUM fell 0.6% to $6.7 billion on September 30, compared to $6.8 billion a month earlier. On a quarterly basis, assets under management of ETPs holding ETH fell by 14.2%. Similarly, ETH prices fell by 13.3%. Since the beginning of the year, the total assets under management of ETPs holding ETH have increased by 35.4%.
ETPs representing a diversified basket of cryptocurrencies fell 3.2% in assets under management in September, with a total decline of 11.5% in the third quarter. Despite this decline, basket ETPs recorded a 32% increase in assets under management on a YTD basis.
ETPs representing an index of alternative currencies rose 2.3% in September, against the backdrop of a 14.2% decline in the third quarter. Year-to-date, ETPs holding individual altcoins showed the weakest growth, compared to other digital asset categories, with a 9.5% increase in assets under management.
ETPs include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). Fineqia Research’s AUM calculation takes into account the launch or closure of ETPs over a period of time. The number of ETPs tracked stood at 169 at the end of September, a slight increase from 162 at the beginning of the year. All references to price are in USD and cryptocurrency prices are sourced from CoinMarketCap. The ETP and ETF AUM data referenced in this announcement has been 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.
Fineqia (www.fineqia.com) is a digital asset company that builds and focuses investments in early-stage 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. Listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia’s investment portfolio includes companies leading the way in tokenization, blockchain technology, NFTs, AI and fintech.