Mr. Bundeep Singh Rangar reports

GLOBAL DIGITAL ASSET-BASED EXCHANGE TRADED PRODUCTS AUM NEARLY DOUBLES IN Q1; SURGES 17% IN MARCH

Fineqia International Inc.'s analysis of global exchange-traded products (ETPs) with digital assets as underlying collateral revealed a 17-per-cent increase in assets under management (AUM), reaching $94.4-billion, from $80.5-billion in March. In the first quarter, total AUM increased by 91 per cent from $49.5-billion recorded at the beginning of 2024.

The growth in ETPs AUM outpaced the increase in the value of underlying crypto assets in Q1 by about 55 per cent. The premium is largely credited to the approval of bitcoin (BTC) spot ETFs (exchange-traded funds) in the United States, which began trading on Jan. 11, boosting capital inflow in financial products with underlying digital assets. In March, the total market cap of digital assets surged by 19 per cent, to about $2.82-trillion from $2.37-trillion. In Q1, the total digital assets market value rose 59 per cent from $1.77-trillion recorded at the end of the previous year.

The 10 BTC spot ETFs, featuring issuers such as Blackrock, 21Shares, Grayscale and others, attracted $12.1-billion in net inflows since their inception. This represents a $4.7-billion net inflow in March, in addition to the cumulative $7.4-billion net inflow recorded at the end of February.

The Grayscale Bitcoin ETF (GBTC) had the most AUM with approximately $21.5-billion in assets. It previously traded as a trust before being converted into an ETF when it experienced $15.2-billion in outflows, offsetting the total $27.3-billion inflows into the new ETFs. About 50 per cent of the total inflow flowed into Blackrock Bitcoin ETF (IBIT), which recorded more than $14-billion inflow since inception.

"The flood of investor enthusiasm that followed the SEC's [Securities and Exchange Commission] approval of bitcoin ETFs is now a steady stream," said Bundeep Singh Rangar, Fineqia's chief executive officer. "As BTC's price holds at more than double that of this time last year, it's likely to garner continued interest amidst expectations of further increases over the next 12 months."

In March, the price of BTC increased by 13.7 per cent, rising to $69,650 from $61,250 at the end of February. During the same period, the AUM of ETPs with BTC as the underlying asset saw a 20.1-per-cent increase, reaching $72.8-billion from $60.6-billion recorded at the end of February.

In Q1, the AUM of ETPs holding BTC as underlying more than doubled, recording a 104.6-per-cent increase from $35.6-billion at the end of 2023. During the same time, BTC price increased 64.7 per cent to $69,650 from $42,300 recorded at the beginning of January. These statistics underscore the significant impact of the recent BTC spot ETFs launch in the recent market uptrend.

During March, ethereum (ETH) rose 1 per cent in value to $3,508 from $3,473 recorded at the end of February. In Q1, ETH price increased 54 per cent from $2,277 at the end of 2023. In the same period, ETH-denominated ETPs AUM increased 51.5 per cent to $14.3-billion from $9.5-billion recorded at the beginning of 2024. During March, ETPs holding ETH as underlying experienced 2 per cent growth to $14.3-billion.

ETPs representing a diversified basket of cryptocurrencies increased 9.5 per cent in AUM during March, to $3.36-billion, from $3.01-billion recorded at the end of February. During Q1, the growth was 49.1 per cent from $2.25-billion at the start of 2024.

ETPs representing an index of alternative coins increased by 38.1 per cent in March to $3.90-billion from $2.83-billion recorded at the end of February. In Q1, the total growth was 74.9 per cent from $2.23-billion at the end of 2023.

Solana (SOL) was dominant in this index, comprising almost half of the alternative coins AUM. ETPs with SOL as the underlying asset increased 48.1 per cent in their AUM in March, to $1.87-billion from $1.26-billion recorded at the end of February, and a total growth of 83.9 per cent year-to-date, from $1.02-billion recorded at the end of last year.

ETPs include exchange-traded funds 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 182 as of the end of March.

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

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. Fineqia's portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs (non-fungible tokens), AI (artificial intelligence) and fintech (financial technology). Fineqia's VC fund in formation, Glass Ventures, backs category-defining Web 3.0 and Web 4.0 companies built by world-class entrepreneurs.

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