Worldwide Digital Asset Based Exchange Traded Products AUM Grew 70% YTD

LONDON, Aug. 8, 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 70% growth in total Assets Under Management (AUM) in the year-to-date (YTD) period amid renewed interest by investors.

The AUM at the end of July was $34 billion compared with $20 billion on Jan. 1 this year. This 70% YTD increase in AUM was a 47.2% premium to the 47.7% rise in the underlying value of digital assets. On a monthly basis, total crypto AUM in July decreased 3.9% to $34 billion from $35.1 billion. During the same time, the overall value of crypto assets fell 1.5%, to about $1.17 trillion from $1.20 trillion.

"Despite net inflows, the fact that more than 90% of digital asset ETP AUMs comprise of Bitcoin (BTC) and Ethereum (ETH) weighed down on the value of AUMs," said Fineqia CEO Bundeep Singh Rangar. "ETPs backed by BTC are 70.1% of the total digital asset ETP market, compared to BTC's 49.8% weight in the overall digital asset market. This heightened dependency on BTC's performance explains the negative delta for ETPs despite the inflow recorded in July."

Bitcoin (BTC) price decreased 4.2% in July, to $29,200 from $30,500 recorded on June 30. The AUM of ETPs holding BTC correspondingly decreased by 3.9%, to $23.8 billion from $24.8 billion.

Similarly, Ethereum (ETH) fell 4% in value to $1,854 from about $1,930. ETH denominated ETPs AUM, about 22% of the overall market, decreased 3% to $7.6 billion on July 31, compared with $7.8 billion a month earlier.

The opinion ruling last month in the SEC v. Ripple Labs by a U.S. District Court in favour of Ripple (XRP) led to an increase in AUM for some altcoins and helped maintain the positive trend for ETPs after the multiple BTC spot ETF filed in June.

ETPs representing a basket of cryptocurrencies rose 1.9% in AUM, almost reaching a total value of $1.5 billion.

In July, the AUM of ETPs holding Ripple (XRP) increased by 57%, to $76.8 million from $49 million. Other altcoins such as Stellar (XLM), Solana (SOL) and Polygon (MATIC) increased in AUM respectively by 40%, 39% and 20%. ETPs representing alternative coins index increased 3.2% to $1.08 billion from $1.04 billion at the beginning of July.