Fineqia International Inc., a leading digital asset and fintech investment business, has reported a 53% growth in total Assets Under Management (AUM) in Exchange Traded Products (ETPs) with digital assets as underlying collateral in the year-to-date (YTD) period. This comes as investors continue to show interest in digital assets.
However, on a quarterly basis, the total AUM dropped 13% in Q3, following growth of 67% and 5% in Q1 and Q2 respectively. Despite this, the year-to-date total AUM shows a premium growth of 18% compared to the underlying value of digital assets, which grew slower at 45%.
In September, total AUM increased 1% to $30.5 billion from $30.2 billion, while the market value of digital assets rose 7% to about $1.15 trillion from $1.08 trillion.
Fineqia CEO Bundeep Singh Rangar attributed the rise in AUM to the performance of Bitcoin, which saw an increase in September. This contrasts with price drops in previous years and monthly declines this year for traditional assets such as global bonds, US treasuries, and S&P 500 stocks. Rangar stated that Bitcoin provided investors with a way to offset the challenges faced by the market.
The report also highlighted the performance of different types of ETPs. ETPs representing a diversified basket of cryptocurrencies decreased 3.2% in AUM in September, with a total decline of 11.5% in Q3. However, these ETPs have still registered a 32% increase in AUM on a year-to-date basis.
On the other hand, ETPs representing an index of alternative coins increased by 2.3% in September, despite a 14.2% decrease in Q3. Meanwhile, ETPs holding individual altcoins showed the weakest growth among digital asset categories, with a 9.5% increase in AUM on a year-to-date basis.
ETPs include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). Fineqia Research’s AUM calculation considers the launch or closure of ETPs during any stated period. The number of tracked ETPs stood at 169 at the end of September, a slight increase from 162 at the beginning of the year.
It is important to note that all price references mentioned are quoted in USD, and the cryptocurrency prices are sourced from CoinMarketCap.
The data used for the analysis was 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 International Inc. is a digital asset business that targets investments in early and growth-stage technology companies. It also provides a platform to support and manage the issuance of debt securities in the UK. The company’s portfolio includes businesses involved in tokenization, blockchain technology, NFTs, AI, and fintech.
While the report provides valuable insights into the performance of digital asset ETPs, it is essential to exercise caution when investing in crypto assets. These assets are generally unregulated, subject to sudden and significant changes in value, and carry a high risk of total loss of investment. Fineqia Inc. is not a crypto asset exchange and is not registered with any authority as such.
It is advisable to seek independent financial and legal advice if you are unsure about the appropriateness of investing in these assets for your circumstances.
More detail via Benzinga here… ( Image via Benzinga )