Mr. Bundeep Singh Rangar reports

WORLDWIDE DIGITAL ASSET-BASED EXCHANGE TRADED PRODUCTS AUM SURGES 51% YEAR-TO-DATE

Fineqia International Inc.'s analysis of global exchange-traded products (ETPs) with digital assets as underlying collateral, revealed a 51-per-cent growth in total assets under management (AUM) in the year-to-date (YTD) period amid renewed interest by investors.

Year-to-date, total crypto AUM shows a premium growth of 63.5 per cent compared with the underlying value of digital assets, which grew slower at 31.5 per cent since the beginning of the year. In August, total crypto AUM decreased 11 per cent to $30.2-billion from $34-billion. The decrease mirrored the drop in values of digital assets during the same period. The market value of crypto assets fell 11 per cent, to about $1.05-trillion from $1.17-trillion.

"While the momentum so far this year has been quite positive, August reflects historic weakness in the digital asset and capital markets," said Fineqia chief executive officer Bundeep Singh Rangar. "The S&P 500 dropped 1.4 per cent last month, for example, lowering its YTD gains to 18.8 per cent. We'll be on the lookout for changes in the months ahead."

Bitcoin's (BTC) price decreased 11 per cent in August, to $26,000 from $29,200 recorded on July 31. The AUM of ETPs holding BTC correspondingly dropped by 10.7 per cent, to $21.3-billion from $23.8-billion. Ethereum (ETH) fell 11.2 per cent in value to $1,646 from about $1,854. ETH-denominated ETPs AUM decreased 10.9 per cent to $6.8-billion on Aug. 31, compared with $7.6-billion a month earlier.

Grayscale, the American digital asset management company, won a lawsuit against the Securities and Exchange Commission concerning the rejection of its Bitcoin Spot ETF filing. The SEC is now called to re-evaluate the rejection as the judge claimed the reasons were inadequate. Despite this victory, in August the cumulative AUM for the Grayscale Trusts decreased 10.7 per cent, to $21.9-billion from $24.5-billion recorded at the end of July.

This performance closely mirrored the digital asset market and the ETPs digital asset market, showing the decision did not cause any major inflow for Grayscale. The discount for Grayscale Bitcoin Trust (GBTC) narrowed to about 20 per cent, however, marking the lowest discount since the beginning of 2022.

ETPs representing a basket of cryptocurrencies decreased 13.1 per cent in AUM, and ETPs representing alternative coins index decreased 16.2 per cent.

ETPs include exchange-traded funds (ETFs) and exchange-traded notes (ETNs). Fineqia Research's AUM calculation factors in the launch or closure of ETPs during any stated period. The number of tracked ETPs stood at 163 as of the end of August.

All references to price are quoted in United States dollars, and the cryptocurrency prices are sourced from CoinMarketCap.

The ETP and ETF AUM data referenced in this announcement were compiled from reputable sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar Inc. and TrackInSight SAS, by Fineqia's dedicated in-house research department.

About Fineqia International Inc.

Fineqia is a digital asset business that builds and targets investments in early and growth stage technology companies that will be part of the next generation of the Internet. It also provides a platform to support and manage the issuance of debt securities in the United Kingdom. Publicly listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia's portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs (non-fungible tokens), AI and fintech.

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