Global Digital Asset-Based Exchange Traded Products AUM Reaches All-Time High of $100 Billion

Rhea-AI Summary

Global Exchange Traded Products (ETPs) with underlying digital assets reached a new all-time high of $100.5 billion in October 2024, marking a 13.2% increase from September. The total digital asset market value grew by 8.9% to $2.54 trillion. Bitcoin (BTC) ETPs saw their AUM grow by 15.4% to $83.2 billion, while Ethereum (ETH) ETPs increased by 1.4% to $10.3 billion despite a 3.5% price decrease in ETH. Year-to-date, ETPs' AUM rose by 102.9%, significantly outpacing the underlying crypto assets growth, largely due to Bitcoin Spot ETFs which accumulated net inflows of approximately $24.2 billion since their January launch.

Positive

• AUM reached new all-time high of $100.5 billion in October
• Bitcoin ETPs AUM grew 15.4% to $83.2 billion
• Year-to-date ETPs AUM increased 102.9%
• Bitcoin Spot ETFs accumulated $24.2 billion in net inflows
• Alternative coin ETPs AUM grew 6.5% to $3.65 billion

Negative

• Ethereum price decreased 3.5% in October
• Grayscale Ethereum ETF experienced significant outflows exceeding $3 billion

London, United Kingdom--(Newsfile Corp. - November 7, 2024) - Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) (FSE: FNQA) (the "Company" or "Fineqia"), a leading digital asset and investment business, announces that its analysis of global Exchange Traded Products (ETPs) with underlying digital assets revealed that Assets Under Management (AUM) reached a new all-time high (ATH) of $100.5 billion in October, a 13.2% increase from $88.8 billion at the end of September, surpassing the previous ATH of $95.4 billion recorded at the end of May this year.

The market value for digital assets grew by 8.9% to $2.54 trillion from $2.33 trillion during October, supporting a year-to-date increase of 43.3% from $1.8 trillion at the end of 2023. Over the same period, ETPs' AUM rose by 102.9%, from $49.5 billion at the beginning of 2024, significantly outpacing the growth of the underlying crypto assets by 137%.

This premium largely reflects the approval of Bitcoin (BTC) Spot ETFs, which launched on January 11 and have since accumulated net inflows of approximately $24.2 billion. Ethereum (ETH) ETPs also saw net inflows in October, contributing to the month's ETP growth vis-à-vis the underlying digital asset market.

"BTC spot ETFs continue to be the anchor in the market, pulling in the strongest flows," said Fineqia's CEO Bundeep Singh Rangar. "In recent weeks, ETH spot ETFs have also begun to catch a current, with inflows and premiums indicating growing interest from investors keen to explore assets beyond Bitcoin."

In October, BTC price increased by 10.4%, rising to $70,350 from $63,725 at the end of September. During the same period, the AUM of BTC ETPs grew by 15.4%, rising to $83.2 billion from $72.1 billion, surpassing the previous ATH of $73.3 billion recorded at the end of May 2024 by 13.7%.

Year-to-date, BTC's price has risen by 66.1%, to $70,350 from $42,290 at the end of 2023. In the same period, BTC ETPs' AUM has surged by 133.9%, rising from $35.6 billion to $83.2 billion. This reflects a 102.5% premium in ETPs holding BTC relative to the underlying asset, underscoring BTC's significant influence on the ETP premium observed throughout 2024.

In October, ETH saw its price decrease by 3.5%, falling to $2,521 from $2,612 at September's close. Over the same period, however, the AUM of ETH ETPs rose by 1.4%, reaching $10.3 billion, up from $10.2 billion. Year-to-date, ETH's price has increased by 10.7%, to $2,521 from $2,277 at the end of 2023, while the AUM of ETH ETPs has grown by 9.3%, climbing to $10.3 billion from $9.4 billion.

The data indicate that the gap between ETH price increases and the growth in AUM for ETPs holding ETH has narrowed in the past two months, suggesting rising demand for ETH-based ETPs. This trend is also driven by reduced outflows from the Grayscale Ethereum ETF (ETHE) following its conversion from a trust, which had led to significant net outflows in ETH ETPs, recently surpassing $3 billion but now showing signs of decline.

Newly launched ETPs have yet to fully counterbalance these outflows, achieving a cumulative inflow of about $2.6 billion. In the past three weeks, however, ETH ETPs have recorded two weeks of positive inflow. That contrasted the first three months since inception, during which only two out of twelve weeks saw positive inflows. This shift is attributed to decreasing outflows from ETHE alongside rising inflows from the newer ETFs.

The AUM of ETPs tracking an index of alternative coins grew by 6.5% in October, reaching $3.65 billion, up from $3.43 billion in September. Year-to-date, AUM for ETPs holding alternative coins has increased by 63.7%, from $2.23 billion.

Meanwhile, ETPs representing a diversified basket of cryptocurrencies saw their AUM rise by 7.5% in October, moving to $3.26 billion from $3 billion at the end of September. Year-to-date, these ETPs have seen a 44.9% AUM increase, rising from $2.25 billion at the beginning of the year.

Fineqia Research's AUM calculation factors in the launch or closure of ETPs during any stated period. The number of tracked ETPs stood at 219 as of the end of October.

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

The ETP and ETF AUM data 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.

About Fineqia International Inc.

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. Publicly listed in Canada (CSE: FNQ) with quoted symbols on the Nasdaq and the Frankfurt Stock Exchange, Fineqia's portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech. Fineqia's VC fund in formation, Glass Ventures, backs category-defining Web 3.0 and Web 4.0 companies built by world-class entrepreneurs. https://twitter.com/FineqiaPlatform and https://www.linkedin.com/company/fineqia/.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Katarina Kupcikova, Marketing & Communications Manager
E. katarina.kupcikova@fineqia.com
T. +44 7806 730 769

FORWARD-LOOKING STATEMENTS

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. Crypto assets are generally unregulated, subject to sudden and significant changes in value and carry a high risk of total loss of the investment. As these are unregulated assets, investors are unlikely to have recourse to any regulatory protections or access to investor compensation schemes. If you are unsure as to the appropriateness of these assets for your circumstances, you should take independent financial and legal advice. Fineqia Inc. is not a crypto asset exchange and is not registered with any Authority as such. This material is general economic commentary and does not constitute a recommendation to buy, sell or otherwise transact in any of the assets discussed.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229164

FAQ

What was the total AUM for digital asset ETPs in October 2024?

Global digital asset ETPs reached a new all-time high of $100.5 billion in AUM during October 2024, representing a 13.2% increase from September.

How much have Bitcoin Spot ETFs accumulated in net inflows since launch?

Bitcoin Spot ETFs have accumulated approximately $24.2 billion in net inflows since their launch on January 11, 2024.

What was the performance of FNQQF's Ethereum ETPs in October 2024?

Ethereum ETPs AUM rose by 1.4% to $10.3 billion in October 2024, despite a 3.5% decrease in ETH price.

How many ETPs were being tracked at the end of October 2024?

The number of tracked ETPs stood at 219 as of the end of October 2024.