Fineqia International Inc.’s (the “Company” or “Fineqia”) (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) analysis of Global Exchange Traded Products (ETPs) that have cryptocurrencies as underlying assets, revealed a drop of 7.5% during the month of Sept. in the value of their Assets Under Management (AUM).
Total AUM declined to $23.5 billion from $25.4 billion between Sept. 1 and Oct. 1 across 157 listed crypto ETPs, which included two new Ethereum-based ETPs, according to Fineqia Research. The ETPs include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs).
On a year-to-date (YTD) basis, the AUM of crypto ETPs dropped to $23.4 billion across the 157 ETPs from $58.5 billion, representing the value of listed 109 ETPs at the start of the year. On Oct. 1, the total cryptocurrency market cap was below $1 trillion, with a further decline of 3.3% in Sept., compared with $2.2 trillion in Jan. This is believed to be a consequence of the increase in interest rates worldwide and tightening liquidity to combat inflation amid a surge in energy prices.
“Unsurprisingly, the crypto ETP market largely tracked the underlying crypto market this past month,” said Fineqia CEO Bundeep Singh Rangar. “The macroeconomic environment and geopolitical developments are likely to continue to influence demand for and prices of cryptoassets.”
ETPs holding Bitcoin (BTC) declined 4% to $16 billion from $16.7 billion in the same period. That closely correlated with the 4% slide in the BTC price, which dropped to about $19,000 on Oct. 1 compared with $20,000 a month earlier. ETPs representing alternative coins, or a basket of cryptocurrencies, dropped 6% and 7% respectively.
Ethereum (ETH) denominated ETPs dropped by 16% in the month of Sept. to $5.6 billion from $6.7 billion. That is strongly correlated to Ethereum (ETH) price which declined by 17.3% in the same period. Ethereum (ETH) price suffered strong fluctuation during Sept., mostly due to the merge executed on Sept. 15, which led to a change in the consensus mechanism of the blockchain from Proof of Work (PoW) to Proof of Stake (PoS).
On a Year to Date (YTD) basis, the value of crypto asset denominated ETPs declined more than the broader cryptocurrency market in 2022. While total AUM decreased 60%, similar to a 57% drop in the broader crypto market, this was despite a 44% increase in the number of ETPs. BTC price dropped by 59% on a YTD basis, while ETH price decreased by 66% in the same period.
All references to dollars are to US dollars.
All cryptocurrency prices are sourced from CoinMarketCap.
All ETFs and ETPs AUM were compiled from publicly available sources, such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc., and TrackInSight SAS by Fineqia’s in house Research Department.
Fineqia is a listed entity in the Canada (CSE: FNQ), US (OTC: FNQQF) and Europe (Frankfurt: FNQA). Fineqia’s strategic focus has been to provide a platform and associated services to support securities issuances and manage administration of debt securities. Fineqia is currently building out its alternative finance business and it currently holds a growing portfolio of blockchain, fintech and cryptocurrency technology companies worldwide.
For more information, visit www.fineqia.com
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