In a notable start to 2024, the digital asset landscape witnessed a significant boost in investor confidence and market participation. Fineqia International Inc. (CSE: FNQ), a frontrunner in the digital asset and fintech investment sphere, has shed light on this positive trend through its meticulous analysis of global Exchange-Traded Products (ETPs) that incorporate digital assets as their underlying collateral. According to Fineqia’s research, January saw a 5% increase in total crypto Assets Under Management (AUM), climbing to $52.0 billion from the previous $49.5 billion.

This uptick in AUM is particularly striking given the backdrop of a 2.7% dip in the overall market value of crypto assets, which settled around $1.73 trillion from $1.77 trillion. The divergence between the AUM growth of crypto ETPs and the broader crypto market valuation can be largely attributed to the approval and commencement of trading of BTC Spot ETFs in the United States from January 11 onwards. These approvals have sparked a significant capital inflow into crypto ETPs, marking a pivotal moment for the industry.

The introduction of 10 BTC Spot ETFs by prominent issuers such as Blackrock, 21Shares, Grayscale, and more has been a catalyst for this growth. Notably, this includes nine new issuances and the transformation of the Grayscale Bitcoin Trust (GBTC) into an ETF. These newly issued products alone have attracted approximately $6.9 billion in inflows in January, despite a net outflow from the Grayscale ETF, resulting in a net inflow exceeding $1 billion for the month.

Among these, BlackRock’s iShares Bitcoin Trust (IBIT) stands out, securing its position as one of the top five ETFs of 2024 based on inflows, with a remarkable $3.2 billion amassed in just the first 17 days since its launch. The BTC ETFs have also been buoyed by Google’s updated marketing policies, allowing for increased visibility through ads for “cryptocurrency coin trusts” in search results.

Fineqia CEO Bundeep Singh Rangar likened the approval of BTC Spot ETFs in the U.S. to a green light that has set the investor traffic in motion, with more participants gaining confidence in digital assets. The positive sentiment is reflected in the performance of Bitcoin (BTC) itself, which saw a price increase of 2.5% to $43,300 in January. Similarly, Ethereum (ETH) witnessed a 3.9% rise to $2,365, showcasing the growing investor interest in leading cryptocurrencies.

Despite some segments experiencing a dip, such as ETPs representing a diversified basket of cryptocurrencies and those tracking an index of alternative coins, the overall growth narrative remains strong. The AUM of ETPs with BTC as the underlying asset, for instance, rose by 6.8% in January, underscoring the significant net inflow following the BTC Spot ETFs’ approval.

Fineqia’s analysis, drawing on reputable sources like 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc., and TrackInSight SAS, highlights the robustness of the digital asset ETP market. With a portfolio encompassing the forefront of tokenization, blockchain technology, NFTs, AI, and fintech, Fineqia continues to be at the vanguard of supporting the next generation of the internet through its investments and research efforts. As the digital asset market evolves, the role of ETPs and the impact of regulatory approvals like those for BTC Spot ETFs in the U.S. will be crucial in shaping investor participation and confidence. The early indications from January 2024 suggest a promising year ahead for digital assets, as both new and seasoned investors navigate this dynamic and increasingly mainstream investment landscape.

Bitcoin’s price witnesses a remarkable rise of 155% in 2023

Fineqia International Inc. (CSE: FNQ), a prominent player in digital assets and fintech investments, has released a comprehensive analysis of global Exchange Traded Products (ETPs) that are based on digital assets. This report highlights a significant growth in the Assets Under Management (AUM) of these products. In 2023, the AUM for digital asset-based Exchange Traded Funds (ETFs) and Notes (ETNs) surged by 2.5 times, reaching an impressive figure of nearly $50 billion, up from $20 billion.

The company’s analysis revealed that the worldwide crypto ETPs’ AUM grew at a rate of 19% over the value of the underlying digital assets, which increased by 123%. This disparity in growth rates is mainly attributed to Bitcoin’s dominance in the ETP AUM, holding a 72% share, which is significantly larger than its 53% share in the overall digital asset market. Bitcoin’s price witnessed a remarkable rise of 155% this year, which fueled investor interest in Bitcoin-denominated ETFs and ETNs.

Bundeep Singh Rangar, CEO of Fineqia, commented on this trend stating, “BTC was the sled dog pulling the (digital asset) ETF sleigh this season.” He further added: “Investors believe they might even have sighted a Santa at the SEC.”

In the fourth quarter of 2023 alone, the AUM of ETPs with Bitcoin as the underlying asset experienced a substantial growth of 64%, rising to $35.6 billion from $21.7 billion. This growth was supported by Bitcoin’s price increase of 57% to $42,300. Throughout the year, the AUM of ETPs holding Bitcoin escalated by 162%, outpacing the 155% rise in Bitcoin’s price.

The report also discusses the anticipation surrounding the SEC’s potential approval of spot Bitcoin ETFs by major issuers like Blackrock, Fidelity, Grayscale, and VanEck. The total AUM of ETPs holding digital assets grew by 62% in the fourth quarter to $49.5 billion, surpassing the 53.8% rise in the market cap of all digital assets, which reached $1.77 trillion. This indicates significant net inflows of investment capital, especially during the last quarter of 2023.

In December, the total crypto AUM increased by 14%, and the market value of crypto assets rose by 19%. Bitcoin’s price itself increased by 12.4%, while the AUMs rose by 11.8%.

The report also sheds light on Ethereum (ETH) and other cryptocurrencies. Ethereum’s value increased by 11.5% in December, and the AUM of ETH-denominated ETPs rose by 14.2%. Throughout 2023, the price of Ethereum rose by 90%, with a near equivalent increase in the AUM of ETH ETPs, suggesting neutral capital flows for these products.

ETPs representing a diversified basket of cryptocurrencies also showed significant growth, with a 23.9% increase in AUM during December and a 138% rise over 2023. The AUM for ETPs holding individual altcoins saw a 165% increase in 2023, indicating robust growth in this sector.

According to the news release issued earlier today, Fineqia’s analysis includes data compiled from reputable sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc., and TrackInSight SAS. The company, listed in Canada with offices in Vancouver and London, focuses on investments in early and growth stage technology companies, particularly those involved in tokenization, blockchain technology, NFTs, AI, and fintech. Fineqia is in the process of forming a VC fund, Glass Ventures, to back pioneering Web 4.0 companies.

In a recent interview with Tracy Weslosky from InvestorNews, Bundeep Singh Rangar, CEO and Director of Fineqia International Inc. (CSE: FNQ), provided insights into the company’s investment in Criptonite, a Swiss digital asset management firm, and discussed the current state of the digital asset market. Concurrently, Fineqia released a news report highlighting significant growth in the digital asset sector.

Rangar emphasized Fineqia’s strategic investment in Criptonite to expand its business proposition and European presence. Criptonite specializes in developing institutional-grade products for digital asset investment, aligning with Fineqia’s objectives and long-standing relationship with the firm’s founder. This investment is part of Fineqia’s broader strategy to increase its footprint in the digital asset market, particularly in Europe.

The interview also revealed Fineqia’s analysis of the digital asset market, particularly in Exchange-Traded Products (ETPs) which include Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs). According to their findings, ETPs with digital assets as underlying collateral experienced a notable 91% growth in Assets Under Management (AUM) year-to-date, surpassing the growth of the underlying digital assets themselves by 30%. This growth was primarily driven by Bitcoin (BTC), which comprises a significant portion of the ETPs’ AUM, despite having a smaller share in the overall digital asset market. The growth in Bitcoin’s value, which more than doubled this year, significantly impacted the ETPs’ AUM.

In October, the AUM for digital asset-based ETPs peaked at $38 billion, the highest since May 2022, representing a 25% increase from the previous month. This surge coincided with a general increase in the market value of cryptocurrencies, which saw a 17% rise, reaching about $1.35 trillion, the highest since June 2022.

Rangar also discussed the regulatory landscape, noting a growing regulatory clarity in regions like Europe, UAE, Hong Kong, and Japan. In contrast, the United States has seen a more enforcement-driven approach by the SEC, which is evolving towards a greater certainty. This shift is exemplified by the anticipation of the approval of Bitcoin Spot ETFs in the U.S., evidenced by several pending applications and BlackRock’s plans for an Ethereum Spot ETF. The market is responding positively to these developments, with expectations of SEC approvals driving investor interest and allocation decisions.

Rangar’s commentary on regulatory developments, combined with Fineqia’s analysis, indicates a maturing digital asset market with increasing institutional interest and regulatory clarity. This scenario presents opportunities for growth and innovation in digital asset investment products, a domain where Fineqia is actively positioning itself.

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About Fineqia International Inc.

Fineqia 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. It also provides a platform to support and manage the issuance of debt securities in the UK. Publicly listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia’s portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech.

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Disclaimer: Fineqia International Inc. is an advertorial member of InvestorNews Inc.

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In a recent analysis by Fineqia International Inc. (CSE: FNQ), a prominent digital asset and fintech investment firm, there has been a notable surge in the global market of Exchange Traded Products (ETPs) that are based on digital assets. The year-to-date (YTD) data reveals an impressive 91% increase in the total Assets Under Management (AUM) of these products. This growth rate is particularly significant as it surpasses the expansion rate of the underlying digital assets by 30%.

The report highlights that the assets underlying these ETPs, including Bitcoin (BTC) and other cryptocurrencies, experienced a slower growth rate of 70% from January 1 to October 31. This discrepancy is largely attributed to Bitcoin’s dominant role in the ETPs, where it comprises about three-quarters of the AUM, despite representing only half of the digital asset market. The substantial appreciation in Bitcoin’s value this year has therefore had a pronounced impact on the AUM of ETPs, which include both Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs).

October 2023 marked a significant milestone, with the AUM of digital asset-based ETPs reaching a peak of $38 billion, the highest value recorded since May 2022. This peak was a 25% increase from the previous month’s $30.5 billion. Concurrently, the market value of crypto assets experienced a 17% rise, reaching approximately $1.35 trillion, the highest since June 2022.

Bundeep Singh Rangar, CEO of Fineqia, commented on the growing anticipation for the approval of Bitcoin Spot ETFs in the U.S., which is seen as a key factor driving the market’s positive momentum. This anticipation is also evident in the 12 pending BTC spot ETF applications with the U.S. Securities and Exchange Commission (SEC) and BlackRock’s recent move to file for a spot ETH ETF.

The report further details the performance of Bitcoin and Ethereum (ETH) in October. Bitcoin’s price saw a 28% increase, reaching $34,600, and the AUM of Bitcoin-holding ETPs mirrored this growth. Ethereum experienced an 8.2% rise in value, and ETPs holding ETH also saw a similar increase in their AUM.

Additionally, ETPs representing a diverse range of cryptocurrencies and an index of alternative coins, like Solana (SOL), showed significant growth in AUM, with SOL-based ETPs experiencing a notable 172% increase in October.

Fineqia’s research methodology takes into account various factors, including the launch or closure of ETPs, and tracks a total of 168 ETPs as of the end of October. The company, listed in Canada and with offices in Vancouver and London, focuses on investments in early and growth stage technology companies, particularly in areas like tokenization, blockchain technology, NFTs, AI, and fintech.

Fineqia International Inc. (CSE: FNQ) (“Fineqia”), a prominent fintech and digital asset investment company, has recently highlighted a remarkable 51% growth in Assets Under Management (AUM) for global Exchange Traded Products (ETPs) backed by digital assets year-to-date (YTD). This surge saw crypto AUM rise by an impressive 63.5%, a rate that exceeded the growth of the underlying digital assets themselves, which saw an increase of 31.5%.

However, August presented a downtrend as total crypto AUM plummeted by 11%, moving from $34 billion to $30.2 billion. Parallel to this decrease, the market value of digital assets dipped to about $1.05 trillion from an earlier $1.17 trillion. Fineqia’s CEO, Bundeep Singh Rangar, commented on this slump, pointing out the historical weakness observed in digital assets for August, and paralleled it with the S&P 500’s 1.4% drop.

Major cryptocurrencies, namely Bitcoin (BTC) and Ethereum (ETH), were not spared from this decline. Bitcoin’s price saw a reduction of 11%, settling at $26,000 from an earlier value of $29,200. Similarly, Ethereum’s value decreased by 11.2%. This affected the AUM of ETPs holding these assets, with BTC and ETH witnessing a drop of 10.7% and 10.9% respectively.

An important development in the digital asset domain was Grayscale’s lawsuit victory against the SEC. The US-based digital asset management company was previously denied its Bitcoin Spot ETF filing by the SEC. Following the lawsuit, the court has called for a review of this rejection. Yet, even with this legal triumph, Grayscale’s cumulative AUM in August fell by 10.7%. Interestingly, the Grayscale Bitcoin Trust’s discount tightened to 20%, its lowest since 2022.

Performance metrics of other ETPs showed that those representing various cryptocurrencies observed a 13.1% decline in their AUM. Additionally, ETPs focused on alternative coins faced a drop of 16.2%. As of August’s end, the total number of ETPs being tracked was 163, accounting for any launches or closures during the period.

Lastly, to provide context, Fineqia is a pioneering digital asset firm, investing in the vanguard tech companies shaping the future of the internet. They have a keen interest in companies working on tokenization, blockchain, AI, NFTs, and fintech. With its public listing in Canada, Fineqia maintains a significant presence in both Vancouver and London. The above summary was prepared from a news release issued by Fineqia today, titled Worldwide Digital Asset-Based Exchange Traded Products AUM Surges 51% Year-to-Date.