Worldwide Digital Asset Based Exchange Traded Products AUM Grew 59% Year-To-Date
The AUM increase was at a 37% premium to the underlying value of digital assets, which grew slower at 43% since the beginning of the year.
LONDON, June 7, 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 59% growth in total Assets Under Management (AUM) in the year-to-date period.
The AUM increase was at a 37% premium to the underlying value of digital assets, which grew slower at 43% since the beginning of the year. This can be attributed to the price rise of main digital assets that underpin ETPs such as Bitcoin and Ethereum vis-à-vis smaller alternative coins, as well as capital inflows into these listed products.
"The tide is higher now than at the beginning of the year, and it has lifted most ships," said Fineqia CEO Bundeep Singh Rangar. "The market is holding steady at this higher watermark."
The 43% price gain since the beginning of the year overshadowed a 3% decrease in AUM in the month of May, to $31.7 billion from $32.6 billion, and the 5% monthly decline in the overall value of crypto assets to $1.14 trillion from about $1.20 trillion.
The total value of the crypto market at the end of May this year was 13% lower than that at the end of May last year, marking the smallest year-on-year decrease so far this year.
Bitcoin (BTC) dropped 7% in May, declining to $27,200 from $29,200 recorded on April 30. The AUM of ETPs holding BTC correspondingly decreased by 4%, reaching $21.7 billion from $22.6 billion.
Ethereum (ETH) decreased 2% in value, dropping to $1,875 from about $1,910. Ethereum (ETH) denominated ETPs grew 1.6% increase in AUM, however, reaching $7.6 billion on May 31, compared with $7.5 billion a month earlier.
ETPs representing alternative coins decreased 8.6%, and those with a basket of cryptocurrencies declined 2.6% in AUM.
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 154 as of the end of May.
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 listed entity in Canada (CSE: FNQ), US (OTC: FNQQF) and Europe (Frankfurt: FNQA). Fineqia's strategic focus has been to provide a platform and associated services to support securities issuances and manage administration of debt securities. Fineqia is building out its alternative finance business and holds a growing portfolio of blockchain, fintech and cryptocurrency technology companies worldwide.
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. [email protected], T. +44 7806 730 769; Media Contact: Angus Campbell, Nominis Advisory, [email protected]
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