LONDON, October 4, 2022 /PRNewswire/ — In its global analysis of exchange-traded products (ETPs) with cryptocurrencies as underlying assets, Fineqia International Inc. (The “Company” or “Fineqia”) (CSE: FNQ) (OTC: FNQQF) (Frankfurt am Main): FNQA) recorded an 11% drop in its AUM value in August.
Total assets under management increased from $28.5 billion to $25.4 billion between August 1 and September 1. Data on 155 listed ETPs, including exchange-traded funds (ETFs) and exchange-traded notes (ETNs), was compiled by Fineqia Research.
The value of ETPs containing Bitcoin (BTC) fell from $19 billion to $16.7 billion in the same period, a 12% decrease. This decline is closely related to the 13% drop in the price of BTC, which fell to around $20,000 on September 1 from $23,000 the previous month. ETPs representing alternative cryptocurrencies or a basket of cryptocurrencies fell 12% and 13% respectively.
The fall in Ethereum-denominated (ETH) ETP was twice as large as the fall in the underlying price of ETH over this period. This is because the cryptocurrency held its price after investors showed confidence in the system change of the ETH network, which moved from proof-of-work (PoW) consensus mechanism – a more energy-intensive approach – to proof-of-work on September 15th. Stake based mechanism (PoS). Ethereum-based ETP total assets fell 8% from $7.3 billion to $6.7 billion, while the price of ETH itself fell just 2%, or 0.6%, in August.
“Crypto markets are sending both negative and positive signals, reflecting the nervousness they generate in the short term as well as the confidence they inspire in the long term. According to Bandip Singh Rangar, CEO of Fineqia, despite the decline in capital inflows into crypto-traded products, the actual number and variety of products entering the market continues to grow. Private blockchain technology companies continue to receive investment in this declining market. »
According to Bloomberg News and Sky News, Blackrock Inc. recently invested in Coinbase Global Inc. and Barclays Plc in Copper Technologies. So far in 2022, 46 new ETPs have been issued with various crypto-currency assets. Of these ETPs, only four held BTC or ETH as underlying collateral as issuers sought to diversify their offerings.
So far in 2022, compared to the beginning of the year (YTD), the value of ETPs denominated in cryptocurrency has declined more sharply than the cryptocurrency market as a whole. Even though total assets under management decreased by 57%, which is similar to the 55% decrease seen in the cryptocurrency market as a whole, the number of ETPs increased by 42%.
At the beginning of 2022, the assets under management of 109 registered cryptocurrency ETPs were $58.5 billion. As of September 1, the number of publicly traded ETPs has risen to 155 while their value has dropped to $25.2 billion. As of September 1, the total cryptocurrency market capitalization was less than $1 trillion compared to $2.2 trillion in January.
The decision of global central banks to raise interest rates in response to inflation caused by the economic impact of the COVID-19 pandemic, as well as a sharp increase in energy prices, have led to a decrease in demand for cryptocurrencies and other crypto-backed assets.
Any reference to the term “dollars” refers to the US dollar.
All prices for cryptocurrencies are taken from CoinMarketCap.
All AUMs of funds and exchange products have been compiled by Fineqia’s research department from public sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc. and TrackInSight SAS.
https://www.weforum.org/agenda/2022/08/central-banks-hike-interest-rates-inflation-pressures/
https://news.bloomberglaw.com/banking-law/blackrock-teams-up-with-coinbase-in-crypto-market-expansion-1
https://news.sky.com/story/barclays-snaps-up-stake-in-2bn-cryptocurrency-firm-copper-12658295#:~:text=Copper%2C%20what%20is%20advised%20by, UK %20lender%2C%20Sky%20News%20learns.
About Fineqia International Inc.
Fineqia is a legal entity registered in Canada (ECD: FNQ), in the USA (HORS COTE: FNQQF) and in Europe (Frankfurt: FNQA). Fineqia’s strategic goal is to provide a platform and related services to support the issuance of securities and manage the management of debt securities. Fineqia is growing its alternative finance business and currently owns a growing portfolio of blockchain, fintech and cryptocurrency companies around the world.
For more information please visit www.fineqia.com
FORWARD-LOOKING STATEMENTS
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 relate to activities, events, or events that Fineqia (the “Company”) believes, expects or expects to occur in the future (including, without limitation, statements of potential acquisitions and financing), are forward-looking statements. . statements. Forward-looking statements are generally identified by the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”. , “plan” or “project” or the negative form of these words or other variants of these words or similar terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which the Company cannot control or predict, which could cause the Company’s actual results to differ materially from those disclosed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the inability to obtain sufficient funding and other risks identified in the disclosure statement. . Any forward-looking statement is effective only as of the date it is made, except as otherwise required by applicable securities laws. The Company disclaims any intention or obligation to update any forward-looking statements, except as required by applicable securities laws.
Katarina Kupchikova, analyst, e-mail: [email protected], tel.: +44 7806 730 769; Bandeep Singh Rangar, CEO, email: [email protected]phone: +1 778 654 2324
SOURCE Fineqia International Inc.
.