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Fineqia’s Analysis Reveals 51% Growth in Crypto Assets Under Management in 2023

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Digital asset and fintech investment company Fineqia International Inc. has reported a 51% increase in total Assets Under Management (AUM) for global Exchange Traded Products (ETPs) with digital assets as underlying collateral in the year-to-date period. The growth reflects renewed interest from investors in this sector.

While the total crypto AUM has shown premium growth of 63.5% compared to the value of digital assets, the actual growth rate of digital assets has been slower at 31.5% since the beginning of the year. In August, total crypto AUM decreased by 11% to $30.2 billion from $34 billion. This decrease aligns with the drop in the values of digital assets during the same period, with the market value falling by 11% to about $1.05 trillion from $1.17 trillion.

Bundeep Singh Rangar, CEO of Fineqia, noted that despite the positive momentum throughout the year, August reflected a historic weakness in the digital asset and capital markets. Rangar highlighted that the S&P 500 dropped 1.4% last month, resulting in lower year-to-date gains. He emphasized the need to monitor changes in the coming months.

Bitcoin’s price decreased by 11% in August, falling to $26,000 from $29,200 recorded on July 31. The AUM of ETPs holding Bitcoin also dropped by 10.7%, reaching $21.3 billion from $23.8 billion. Ethereum experienced a value decrease of 11.2%, falling to $1,646 from approximately $1,854. ETH-denominated ETPs AUM decreased by 10.9% to $6.8 billion on August 31, compared to $7.6 billion the previous month.

In other news, Grayscale, an American digital asset management company, won a lawsuit against the SEC regarding the rejection of its Bitcoin Spot ETF filing. The judge ruled that the reasons for rejection were inadequate and ordered the SEC to re-evaluate the decision. Despite this victory, Grayscale Trusts experienced a decrease in cumulative AUM of 10.7% in August, dropping to $21.9 billion from $24.5 billion recorded at the end of July.

The performance of Grayscale Trusts closely mirrored the digital asset market and the ETPs digital asset market, indicating that the legal decision did not cause any major influx for Grayscale. However, the discount for Grayscale Bitcoin Trust (GBTC) narrowed to about 20%, marking the lowest discount since the beginning of 2022.

ETPs representing a basket of cryptocurrencies saw a 13.1% decrease in AUM, while ETPs representing alternative coins index decreased by 16.2%.

Exchange Traded Products (ETPs) include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). Fineqia Research’s calculation of AUM takes into account the launch or closure of ETPs during any stated period. As of the end of August, 163 ETPs were tracked.

All price references in this announcement are quoted in USD, and the cryptocurrency prices are sourced from CoinMarketCap.

The AUM data for ETPs and ETFs mentioned in this report were compiled from reputable sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc., and TrackInSight SAS, by Fineqia’s in-house research department.

Fineqia is a digital asset business that focuses on investments in early and growth stage technology companies that will shape the future of the Internet. The company also provides a platform to support and manage the issuance of debt securities in the UK. Fineqia is publicly listed in Canada and has offices in Vancouver and London. Its investment portfolio includes businesses at the forefront of tokenization, blockchain technology, non-fungible tokens (NFTs), artificial intelligence (AI), and fintech.

It is important to note that some statements in this release may contain forward-looking information, as defined under applicable Canadian securities laws. These statements address activities, events, or developments that the company anticipates occurring in the future, such as potential acquisitions and financings. However, forward-looking statements are subject to various risks and uncertainties, and the actual results may differ from the expectations discussed in these statements. Factors that could cause such differences include the failure to obtain sufficient financing and other risks disclosed in the company’s public disclosure record. The company disclaims any intent or obligation to update any forward-looking statement except as required by applicable securities laws.

Investing in crypto assets carries a high risk of total loss, as these assets are generally unregulated and subject to significant value changes. Investors in these assets are unlikely to have recourse to regulatory protections or access to investor compensation schemes. It is recommended that individuals seeking to invest in crypto assets seek independent financial and legal advice. Furthermore, Fineqia Inc. is not a crypto asset exchange and is not registered with any authority as such.

More detail via Benzinga here… ( Image via Benzinga )

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