Number of Crypto ETPs Grew 50% in 2022, Even as AUM Mirrored Drop
in Cryptocurrency Prices
London, UK -- January 17, 2023 -- InvestorsHub NewsWire --
Fineqia International Inc.'s (the "Company" or "Fineqia") (CSE:
FNQ) (OTC: FNQQF) (Frankfurt: FNQA) analysis of Exchange
Traded Products (ETPs) worldwide that have cryptocurrencies as
underlying assets, indicated that the number of ETPs increased 50%
to 162 from 109 in 2022, even as their Assets Under Management
(AUMs) decreased 66%, mirroring the 64% fall in
cryptocurrency market values during the same period.
Fineqia research revealed that the number of ETPs increased by 53
to 162 in Dec. from 109 in Jan. Conversely, their total AUM
declined to a third of their value to $20 billion from $58.5
billion in 2022. The price of Bitcoin (BTC) dropped by 65%, while
Ethereum (ETH) decreased by 68% during Jan-Dec. 2022 period.
For the month of Dec., the AUM of ETPs decreased by 5%, while the
value of the cryptocurrency market dropped 8% to about $800
million. That implied a total decline of 64% in 2022 from $2.2
trillion last January.
"The fact that an average of one new ETP was issued each week,
despite the bear market in 2022, can be seen as an indication of
continued investor appetite for this asset class," said Fineqia's
CEO Bundeep Singh Rangar. "Specific events, such as the bankruptcy
of FTX, contributed to a fall in crypto prices and resultant
ETPs started during bear markets experienced significant growth in
subsequent bull markets. Grayscale's Litecoin Trust (LTCN)
launched in 2018, for example, grew more than 220x from an initial
AUM of approx. $472k to about $104 million. Similarly, the AUM of
two 21 Shares ETPs increased about 120x from the time of their
launch in 2019. The 21Shares Ethereum ETP (AETH) grew from about
$1.3 million to $155 million and that of the 21Shares Bitcoin ETP
(ABTC) increased from $1.2 million to nearly $145 million.
By contrast, ETPs launch around the time of BTC's all-time high of
more than $65,000 in Nov. 2021, such as the ProShares Bitcoin
Strategy ETF, launched on Oct. 18, 2021, dropped 54% to about $549
million from $1.2 billion. Similarly, the Invesco Physical Bitcoin
ETN started on Nov. 22, 2021, fell 70% to about $52 million from an
initial $171 million.
In the month of Dec., the AUM ETPs holding BTC dropped by 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 decreased by 18% and those with a
basket of cryptocurrencies dropped by 8%.
One ETP that had the FTX token (FTT) as its underlying asset was
removed from trading, decreasing the total number of ETPs by one to
162, from the 163 previously listed.
All references are in US dollars and 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.
About Fineqia International
is a listed entity in 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 the
administration of debt securities. Fineqia is building out its
alternative finance business and holds a growing portfolio of
blockchain, fintech and cryptocurrency technology companies
Some statements in this release may contain forward-looking
information (as defined under applicable Canadian securities laws)
("forward-looking statements"). All statements, other than of
historical fact, that address activities, events or developments
that Fineqia (the "Company") believes, expects or anticipates will
or may occur in the future (including, without limitation,
statements regarding potential acquisitions and financings) are
forward-looking statements. Forward-looking statements are
generally identifiable by use of the words "may", "will", "should",
"continue", "expect", "anticipate", "estimate", "believe",
"intend", "plan" or "project" or the negative of these words or
other variations on 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, that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results
or events to differ materially from current expectations include,
among other things, without limitation, the failure to obtain
sufficient financing, and other risks disclosed in the Company's
public disclosure record on file with the relevant securities
regulatory authorities. Any forward-looking statement speaks only
as of the date on which it is made except as may be required by
applicable securities laws. The Company disclaims any intent or
obligation to update any forward-looking statement except to the
extent required by applicable securities laws.
FOR FURTHER INFORMATION, PLEASE
Katarina Kupcikova, Analyst
T. +44 7806 730 769
Bundeep Singh Rangar, CEO
T. +1 778 654 2324