LONDON, Aug. 8, 2023 /PRNewswire/ -- Fineqia International Inc. (the "Company" or "Fineqia") (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA), 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 70% growth in total Assets Under Management (AUM) in the year-to-date (YTD) period amid renewed interest by investors.
The AUM at the end of July was $34 billion compared with $20 billion on Jan. 1 this year. This 70% YTD increase in AUM was a 47.2% premium to the 47.7% rise in the underlying value of digital assets. On a monthly basis, total crypto AUM in July decreased 3.9% to $34 billion from $35.1 billion. During the same time, the overall value of crypto assets fell 1.5%, to about $1.17 trillion from $1.20 trillion.
"Despite net inflows, the fact that more than 90% of digital asset ETP AUMs comprise of Bitcoin (BTC) and Ethereum (ETH) weighed down on the value of AUMs," said Fineqia CEO Bundeep Singh Rangar. "ETPs backed by BTC are 70.1% of the total digital asset ETP market, compared to BTC's 49.8% weight in the overall digital asset market. This heightened dependency on BTC's performance explains the negative delta for ETPs despite the inflow recorded in July."
Bitcoin (BTC) price decreased 4.2% in July, to $29,200 from $30,500 recorded on June 30. The AUM of ETPs holding BTC correspondingly decreased by 3.9%, to $23.8 billion from $24.8 billion.
Similarly, Ethereum (ETH) fell 4% in value to $1,854 from about $1,930. ETH denominated ETPs AUM, about 22% of the overall market, decreased 3% to $7.6 billion on July 31, compared with $7.8 billion a month earlier.
The opinion ruling last month in the SEC v. Ripple Labs by a U.S. District Court in favour of Ripple (XRP) led to an increase in AUM for some altcoins and helped maintain the positive trend for ETPs after the multiple BTC spot ETF filed in June.
ETPs representing a basket of cryptocurrencies rose 1.9% in AUM, almost reaching a total value of $1.5 billion.
In July, the AUM of ETPs holding Ripple (XRP) increased by 57%, to $76.8 million from $49 million. Other altcoins such as Stellar (XLM), Solana (SOL) and Polygon (MATIC) increased in AUM respectively by 40%, 39% and 20%. ETPs representing alternative coins index increased 3.2% to $1.08 billion from $1.04 billion at the beginning of July.
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 157 as of the end of June.
All references to price are quoted in USD, and the cryptocurrency prices are sourced from CoinMarketCap.
The ETP and ETF AUM data referenced in this announcement were compiled from reputable sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc., and TrackInSight SAS, by Fineqia's dedicated in-house research department.
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. It also provides a platform to support and manage the issuance of debt securities in the UK. Publicly listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia's portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech.
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.
CONTACT : Katarina Kupcikova, Analyst, E. katarina.kupcikova@fineqia.com, T. +44 7806 730 769; Media Contact, Angus Campbell, Nominis Advisory, angus@nominis.co
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