Fineqia International Inc
LONDON, Oct. 1 /PRNewswire/
Fineqia International Inc. (“The Company” or “Fineqia”) (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) analysis of cryptocurrency-based Exchange Traded Products (ETPs) worldwide that the number of ETPs increased by 50% from 109 in 2022 to 162. However, assets under management (AUMs) have fallen by 66%, reflecting the 64% drop in cryptocurrency market caps over the same period.
Fineqia’s research showed that the number of ETPs rose by 53 to 162 in December, up from 109 in January. In contrast, the amount of total assets under management in 2022 fell from USD 58.5 billion to USD 20 billion, a third of their initial value. The price of Bitcoin (BTC) fell by 65%, while the value of Ethereum (ETH) fell by 68% in the period from January to December 2022.
In December, ETPs’ AUM fell by 5%, while the value of the cryptocurrency market fell by 8% to around $800 million. That’s a total drop of 64% in 2022 from $2.2 trillion last January.
“The fact that an average of one new ETP was launched every week despite the bear market in 2022 can be seen as an indication of continued investor interest in this asset class,” said Bundeep Singh Rangar, CEO of Fineqia. “Certain events, like FTX’s bankruptcy, contributed to a drop in crypto prices and consequently AUMs.”
ETPs launched during a bear market have seen significant growth in subsequent bull markets. For example, Grayscale’s Litecoin Trust (LTCN), launched in 2018, grew more than 220 times from an initial AUM of approx. US$472,000 to about US$104 million. Similarly, two 21-share ETPs have seen their AUM grow 120x since their inception in 2019. 21Shares Ethereum ETP (AETH) grew from about $1.3 million to $155 million, and 21Shares Bitcoin ETP (ABTC) rose from $1, 2 million to nearly $145 million.
In contrast, ETPs that launched around the time of BTC’s all-time high of more than $65,000 in November 2021 declined. Take for example the ProShares Bitcoin ETF, which launched on October 18, 2021, and is down 54% from 1 .2 billion to about $549 million. Similarly, the Invesco Physical Bitcoin ETN, which launched on November 22, 2021, fell 70% from its initial $171 million to around $52 million.
In December, AUM for BTC-backed ETPs fell 3% from $14 billion to $13.5 billion. AUM for ETH-denominated ETPs fell 7.5% from $5.3 billion to $5 billion. Alternative coin ETPs fell 18% and basket cryptocurrency ETPs fell 8%.
An ETP that had the FTX token (FTT) as its underlying was withdrawn from trading, reducing the total number of ETPs by one from 163 to 162.
All figures are in USD and all cryptocurrency prices are from CoinMarketCap.
All AUM amounts of ETFs and ETPs were compiled by Fineqia’s internal research department from publicly available sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc. and TrackInSight SAS.
About Fineqia International Inc.
Fineqia (www.fineqia.com) is a public company in Canada (CSE: FNQ), the United States (OTC: FNQQF) and Europe (Frankfurt: FNQA). Fineqia’s strategic focus is to provide a platform and related services to support securities issuance and debt management. Fineqia is currently expanding its alternative finance business and currently has a growing portfolio of blockchain, fintech and cryptocurrency technology companies worldwide.
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For more information: Katarina Kupcikova, analyst, e-mail: email@example.com, tel. +44 7806 730 769; Bundeep Singh Rangar, CEO, Email: firstname.lastname@example.org, Tel. +1 778 654 2324
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