Fineqia International, a leading digital asset and fintech investment company, has reported a significant increase in total Assets Under Management (AUM) for global Exchange Traded Products (ETPs) with digital assets as underlying collateral. According to their analysis, there has been a 51% growth in AUM year-to-date (YTD), indicating a renewed interest from investors.
The total crypto AUM has experienced a premium growth rate of 63.5% compared to the underlying value of digital assets, which grew at a slower rate of 31.5% since the beginning of the year.
However, in August, there was a decrease in total crypto AUM, which dropped by 11% to $30.2 billion from $34 billion. This decrease was in line with the drop in the values of digital assets during the same period, with the market value of crypto assets falling by 11% to about $1.05 trillion from $1.17 trillion.
Fineqia CEO Bundeep Singh Rangar acknowledges the historic weakness in the digital asset and capital markets during August. He points out that while the momentum this year has been positive, the recent drop in the S&P 500 and other factors might indicate potential changes in the months ahead.
The price of Bitcoin (BTC) also saw a decline of 11% in August, dropping to $26,000 from $29,200 recorded at the end of July. This decline affected the AUM of ETPs holding BTC, which decreased by 10.7% to $21.3 billion from $23.8 billion. Ethereum (ETH) experienced a similar drop in value, falling by 11.2% to $1,646 from around $1,854. ETH-denominated ETPs also saw a decrease of 10.9% in AUM, reaching $6.8 billion on August 31 compared to $7.6 billion the previous month.
In other news, Grayscale, the American digital asset management company, won a lawsuit against the SEC regarding the rejection of its Bitcoin Spot ETF filing. The judge claimed that the reasons for rejection were inadequate, and the SEC is now required to re-evaluate the decision. Despite this victory, Grayscale Trusts experienced a decrease of 10.7% in cumulative AUM, dropping to $21.9 billion from $24.5 billion recorded at the end of July. This decrease suggests that the rejection did not result in any major inflow for Grayscale. The discount for Grayscale Bitcoin Trust (GBTC) narrowed to about 20%, marking the lowest discount since the beginning of 2022.
The AUM of ETPs representing a basket of cryptocurrencies decreased by 13.1%, while ETPs representing alternative coins index decreased by 16.2%.
Fineqia Research’s AUM calculation takes into account the launch or closure of ETPs during any given period. As of the end of August, there were 163 tracked ETPs.
All prices mentioned in the article are quoted in USD, and the cryptocurrency prices are sourced from CoinMarketCap.
The AUM data for ETPs and ETFs referenced in this announcement were 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 is a digital asset business that focuses on investing in early and growth-stage technology companies that will be part of the next generation of the internet. They also provide a platform for supporting and managing the issuance of debt securities in the UK. Fineqia is publicly listed in Canada (CSE: FNQ) and has offices in Vancouver and London. Their investment portfolio includes companies at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech.
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