Assets under management of global cryptocurrency ETPs slow down decline

Fineqia reveals a 7.5% drop in the value of their assets under management (AUM) in September, compared to an 11% drop in August.

In its global analysis of exchange-traded products (ETPs) with cryptocurrencies as the underlying assets, Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) revealed a decline of 7.5% in the value of their assets under management (AUM) in the month of September.

According to Fineqia Research, total assets under management increased from $25.4 billion to $23.5 billion between September 1 and October 1 for 157 listed crypto ETPs, including two new Ethereum-based ETPs. ETPs include exchange-traded funds (ETFs) and exchange-traded notes (ETNs).

Year-to-date (YTD), crypto ETP assets under management fell to $23.4 billion across 157 ETPs, from $58.5 billion previously. This new figure is equivalent to the value of 109 listed ETPs at the start of the year. On October 1, the total cryptocurrency market capitalization was below $1 trillion, with a further 3.3% drop in September from $2.2 trillion in January. This situation would be the consequence of the rise in interest rates around the world and the tightening of liquidity to fight against inflation in a context of soaring energy prices.

“Unsurprisingly, the crypto ETP market has largely tracked the underlying cryptocurrency market over the past month,” said Fineqia CEO Bundeep Singh Rangar. “The macroeconomic environment and geopolitical developments are likely to continue to influence demand and prices for crypto-assets.”

Bitcoin (BTC) ETPs saw their value fall from $16.7 billion to $16 billion over the same period, a decrease of 4%. This decrease is closely linked to the 4% decline in the price of BTC, which fell to around $19,000 on October 1, compared to $20,000 the previous month. ETPs representing alternative cryptocurrencies or a basket of cryptocurrencies fell 6% and 7% respectively.

ETPs denominated in Ethereum (ETH) fell 16% during the month of September, from $6.7 billion to $5.6 billion. This decline is strongly linked to the price of Ethereum (ETH) which fell by 17.3% during the same period. The price of Ethereum (ETH) has undergone strong fluctuations during the month of September, mainly due to the merger executed on September 15, which led to a change in the consensus mechanism of the blockchain from the type “ Proof-of-Work” (PoW) to the “Proof-of-Stake” (PoS) type.

In 2022, compared to the beginning of the year (YTD), the value of cryptocurrency-denominated ETPs has seen a steeper decline than the overall cryptocurrency market. While total AUM fell by 60%, a decrease similar to the 57% decline seen across the cryptocurrency market as a whole, the number of ETPs increased by 44%. The price of BTC has fallen 59% to date (YTD), while the price of ETH has fallen 66% over the same period.

Any mention of the term “dollars” refers to the US dollar.
All cryptocurrency prices are from CoinMarketCap.
All fund and exchange-traded product AUMs have been compiled by Fineqia’s research department from publicly available sources, such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc., and TrackInSight SAS.

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Assets under management of global cryptocurrency ETPs slow down decline

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