Fineqia International Inc., a digital asset and fintech investment business, has reported a 76% growth in total Assets Under Management (AUM) in global Exchange Traded Products (ETPs) with digital assets as underlying collateral.
This increase in AUM has outpaced the growth of the underlying digital assets, which grew at a slower rate of 50% since the beginning of the year.
The rise in AUM can be attributed to the price increase of Bitcoin, the main digital asset underpinning ETPs, compared to smaller alternative coins, as well as strong capital inflows into listed products during June.
Fineqia CEO Bundeep Singh Rangar noted that the upward trend in AUM is attracting capital, and recent filings for spot BTC ETFs in the US indicate a renewed interest among financial institutions. Notable companies such as Fidelity Investments, Invesco, VanEck, 21Shares, and WisdomTree have submitted filings for BTC ETFs, following BlackRock Inc.’s submission to the SEC in June.
In June, the total crypto AUM increased by 10.7% to $35.1 billion, while the overall value of crypto assets grew by 4.7% to about $1.20 trillion.
On a quarterly basis, AUM increased by 5.5% in Q2, following a 67% increase in Q1, and the overall value of crypto assets grew by 0.6% in Q2, compared to a 49% increase in Q1.
The price of Bitcoin increased by 12% in June, reaching $30,500, and the AUM of ETPs holding BTC increased by 14% to $24.8 billion.
Ethereum (ETH) also saw a 3% increase in value to $1,930, and ETH-denominated ETPs’ AUM grew by 3% to $7.8 billion.
ETPs representing alternative coins experienced a 1% increase in AUM, while those with a basket of cryptocurrencies rose by 7%. Fineqia’s AUM calculation considers the launch or closure of ETPs during the stated period, and as of the end of June, there were 154 tracked ETPs.
The data on ETP and ETF AUM mentioned in the announcement were compiled from reputable sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc., and TrackInSight SAS, by Fineqia’s dedicated in-house research department.