LONDON, January 17, 2023 /CNW/ – Analysis by Fineqia International Inc. (the “Company” or “Fineqia”) (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) of exchange-traded products (ETPs) around the world that have cryptocurrencies as underlying assets, reported that the number of ETPs increased by 50% to 162 from 109 in 2022, even as their assets under management (AUM) fell by 66%, reflecting the 64% drop in cryptocurrency market values over the same period.
Fineqia’s research found that the number of FTEs rose by 53 to 162 in December, from 109 in January. Conversely, their total AUM decreased to a third of their value for $20 billion from $58.5 billion in 2022. The price of Bitcoin (BTC) fell 65%, while Ethereum (ETH) decreased by 68% in JanuaryDec. 2022 period.
For the month of December, assets under management of ETPs decreased by 5%, while the value of cryptocurrency market fell 8% to around $800 million. This implied a total decline of 64% in 2022 compared to $2.2 trillion last January.
“The fact that on average one new ETP was issued every week, despite the 2022 bear market, can be seen as an indication of continued investor appetite for this asset class,” said Fineqia CEO , Bundeep Singh Rangar. “Special events, such as the bankruptcy of FTX, contributed to the decline crypto prices and resulting AUMs. »
ETPs launched during bear markets have seen significant growth in subsequent bull markets. Shades of grey Litecoin Trust (LTCN) launched in 2018, for example, grew more than 220x from an initial AUM of c. $472,000 at about $104 million. Similarly, the assets under management of two 21-stock ETPs have increased around 120 times since their launch in 2019. Ethereum ETP (AETH) rose from around $1.3 million to $155 million and that of 21Shares Bitcoin ETP (ABTC) went from $1.2 million after $145 million.
In contrast, ETPs are launched around the time of BTC’s all-time high of over $65,000 in Nov 2021such as ProShares Bitcoin ETF Strategy, launched on October 18, 2021fell 54% to around $549 million from $1.2 billion. Similarly, the Invesco Physical Bitcoin ETN started on November 22, 2021dropped by 70% to around $52 million of an initial $171 million.
In the month of December, AUM ETPs holding BTC fell 3% to $13.5 billion from $14 billion. The AUM of ETH– denominated ETPs decreased by 7.5% to $5 billion from $5.3 billion. ETPs representing alternative coins fell by 18% and those with a basket of cryptocurrencies fell by 8%.
An ETP that had the FTX (FTT) token as its underlying asset was removed from trading, reducing the total number of ETPs by one to 162, from the previously listed 163.
All references are in US dollars and all cryptocurrency prices are from CoinMarketCap.
All ETFs and ETP AUMs have been compiled from publicly available sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc. and TrackInSight SAS by Fineqia’s internal research department.
About Fineqia International Inc.
Fineqia (www.fineqia.com) is a listed entity in Canada (CSE: FNQ), USA (OTC: FNQQF) and Europe (Frankfurt: FNQA). Fineqia’s strategic direction has been to provide a platform and associated services to support securities issuances and manage debt securities administration. Fineqia is growing its alternative finance business and has a growing portfolio of blockchain, fintech and cryptocurrency technology companies around the world.
Certain statements in this release may contain forward-looking information (as defined by applicable Canadian securities laws) (“forward-looking statements”). All statements, other than historical facts, that address activities, events or developments that Fineqia (the “Company”) believes, expects or anticipates will or may occur in the future (including including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by the use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “have the ‘intent’, ‘plan’ or ‘project’ or the negative of these words or other variations of 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, which may cause the Company’s actual results to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially current expectations include, among other things, the inability to obtain sufficient financing and other risks disclosed in the Company’s public disclosure filing with securities regulators. res competent. Any forward-looking statement speaks only as of the date it is made, except as required by applicable securities laws. The Company disclaims any intention or obligation to update any forward-looking statement, except as required by applicable securities laws.
SOURCE Fineqia International Inc.
For further information: Katarina Kupcikova, analyst, E. [email protected], T. +44 7806 730 769; Bundeep Singh Rangar, CEO, E. [email protected]Phone +1 778 654 2324