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 revealed a 53% increase in total assets under management (AUM ) year-to-date (YTD) amid continued investor interest. On a quarterly basis, total AUM decreased by 13% in the third quarter, after increasing by 67% and 5% in the first and second quarters respectively.
Year-to-date, total AUM has grown at a premium of 18% compared to the underlying value of digital assets, which has grown more slowly at 45%. In September, total AUM rose 1% to $30.5 billion from $30.2 billion. In the same month, the market value of digital assets increased by 7%, to about $1.15 trillion from $1.08 trillion.
“Bitcoin rallied in September, which contrasts price declines in the same month in recent years as well as monthly declines in September this year for many traditional assets such as global bonds, US Treasuries and S&P 500 stocks,” said Fineqia CEO Bundeep Singh Rangar. “It gives investors a way to hedge an otherwise challenging market.”
The price of Bitcoin (BTC) rose 4% in September to $27,000 from $26,000 recorded on August 31. AUM of ETPs holding BTC increased by 1.8%, to $21.7 billion from $21.3 billion. Year-to-date, AUM of ETPs holding BTC is up 59.7%, despite a 12.7% decline recorded in the third quarter. The price of BTC is closely mirrored, down 11.4% in the third quarter.
In September, Ethereum (ETH) rose 1.8% in value to $1,675 from $1,646 recorded at the end of August. ETP denominated in Ethereum (ETH) AUM fell 0.6% to $6.7 billion as of September 30, compared to $6.8 billion a month earlier. On a quarterly basis, AUM of ETPs holding ETH decreased by 14.2%. Similarly, ETH prices fell by 13.3%. Year-over-year, the total AUM of ETPs holding ETH increased by 35.4%.
ETPs representing a diversified basket of cryptocurrencies fell 3.2% in AUM in September, for a total decline of 11.5% in the third quarter. Despite this decline, basket ETPs recorded a 32% increase in AUM on a YTD basis.
ETPs representing an index of alternative currencies rose 2.3% in September against a 14.2% decline in the third quarter. Year-to-date, ETPs holding individual altcoins showed the weakest growth, compared to other digital asset classes, with a 9.5% increase in AUM.
ETPs include Exchange Traded Funds (ETFs) and Exchange Traded Bonds (ETNs). Fineqia Research’s AUM calculation factors at the opening or closing of the ETPs during any stated period. The number of ETPs monitored stood at 169 at the end of September, a slight increase from 162 at the start of the year. All price references are in USD and cryptocurrency prices are from CoinMarketCap. The ETP and ETF AUM data reported in this release were compiled from reliable sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc. and TrackInSight SAS, from Fineqia’s dedicated research department.
Fineqia (www.fineqia.com) is a digital asset firm that originates and targets investments in early 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 UK debt issuance. Publicly listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia’s investment portfolio includes companies at the forefront of tokenization, blockchain technology, NFTs, AI and fintech.