- A new study from Fineqia International, an investor in fintech and digital asset technologies, estimates that exchange-traded funds and notes holding crypto reached US$80.5 billion in assets under management in March, after a 55 per cent surge in February
- Bitcoin gained 41.4 per cent from January to February, reaching US$61,250, while ETF and ETN assets offering exposure to Bitcoin rose by 59.5 per cent, reaching US$60.6 billion in AUM at the end of January
- Fineqia International is a digital asset business building and investing in technologies across tokenization, blockchain, NFTs, fintech and artificial intelligence
- Fineqia stock is down by 50 per cent year-over-year
A new study from Fineqia International (CSE:FNQ), an investor in fintech and digital asset technologies, estimates that exchange-traded funds (ETFs) and notes (ETNs) holding crypto reached US$80.5 billion in assets under management (AUM) in March, after a 55 per cent surge in February.
The 55 per cent gain was 50 per cent higher than that of the funds’ underlying crypto assets, which grew by only 37 per cent in February from US$1.73 trillion to US$2.37 trillion. The previous high for global AUM was US$58.5 billion, which was reached at the end of 2021.
“If you can’t beat ’em, join ’em, is the mantra,” Bundeep Singh Rangar, Fineqia’s chief executive officer, said in a statement. “Old-school fund managers risk ignoring Bitcoin’s unprecedented returns over the past 15 years at their own peril. The legitimization of the coin via spot ETFs, likely easing of interest rates and reduced token supply are all likely to support its rising price.”
Asset growth has been propelled by the January approval of 10 spot Bitcoin ETFs from the likes of BlackRock, 21Shares and Grayscale, accounting for US$7.4 billion in net inflows since inception, with BlackRock’s Bitcoin Trust (NDAQ:IBIT) setting the record for the fastest ETF to reach US$10 billion in AUM. In comparison, the SPDR Gold Shares (NYSE:GLD), the first gold ETF in the United States, took more than two years to reach this milestone.
“The institutional race is on and it’s driving demand,” Rangar said. “The high uptake of ETFs is causing its issuers to soak up available Bitcoin supply in the market, driving up prices. And it looks like there might still be some more room to stretch along the price elasticity curve.”
Bitcoin gained 41.4 per cent in February 2024, reaching US$61,250, while ETF and ETN assets offering exposure to Bitcoin rose by 59.5 per cent, reaching US$60.6 billion, representing about 4.9 per cent of the total Bitcoin supply.
Ethereum (ETH), for its part, added 46.9 per cent in February, rising to US$3,473, with ETH-denominated ETFs and ETNs increasing their assets by 46 per cent to US$14 billion. BlackRock and Fidelity are awaiting the SEC’s decision on their applications for spot Ethereum ETFs, which is expected by the end of May.
When it comes to alternative coins beyond Bitcoin and Ethereum, representative ETFs and ETNs added 27.1 per cent in January, rising to US$2.83 billion. This trend is led by Solana, a high-speed blockchain network, which commands nearly half of the AUM.
Fineqia’s calculations include 180 crypto ETFs and ETNs from across the world.
Click here to read the full analysis.
About Fineqia International
Fineqia International is a digital asset business building and investing in technologies across tokenization, blockchain, NFTs, fintech and artificial intelligence.
Fineqia stock (CSE:FNQ) is unchanged, trading at C$0.005 per share as of 9:54 am ET. The stock is down by 50 per cent year-over-year.
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