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Worldwide digital asset based ETP AUM 77 per cent ahead YTD: Fineqia International

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Fineqia International has announced that its analysis of global ETPs with digital assets as underlying collateral revealed Assets Under Management (AUM) year-to-date (YTD) increased to USD87.9 billion, marking a 77 per cent increase from USD49.5 billion. The total number of ETPs increased by 32 to 194, or 20 per cent more, than those on Jan. 1 this year, the firm says.

In June, the AUM of ETPs holding underlying digital assets decreased 8 per cent, from USD95.4 billion recorded at the end of May. During the same period, the digital assets market cap dropped by 9.1 per cent to USD2.43 trillion from USD2.68 trillion. In Q2, total AUM of such ETPs decreased by 6.9 per cent from USD94.4 billion recorded at the end of Q1.

The growth in ETPs’ AUM has outpaced the increase in the value of underlying digital assets YTD by approximately 108 per cent. ETPs’ AUM saw a 77 per cent increase, compared to a 37.3 per cent rise in the digital assets market cap. This premium growth persisted in Q2, after a strong Q1, despite a market downturn. In Q2, the AUM of ETPs holding digital assets decreased by 6.9 per cent, while the total market cap of digital assets dropped by 13.7 per cent.

The significant premium is still attributed to the approval of BTC Spot ETFs, which began trading on Jan. 11 and saw a cumulative net inflow of around USD14.5 billion in Q1 and Q2. Market participants are now anticipating the launch of Ethereum (ETH) Spot ETFs in July. This could lead to additional net inflows and pave the way for broader adoption of altcoins wrapped into financial products.

“Ethereum backed ETFs will further legitimize digital assets as an institutional grade investment class,” says Fineqia’s CEO Bundeep Singh Rangar. “BTC Spot ETFs cracked open the door, and ETH ETFs will swing it further.”

In June, the price of BTC dropped by 8.4 per cent, to USD61,850 from USD67,550 at the end of May. During the same time, the AUM of ETPs with BTC as the underlying asset saw a 7.9 per cent decrease, dropping to USD67.5 billion from USD73.3 billion recorded at the end of May. This data indicates a neutral flow into BTC ETPs for June.

In Q2, the AUM of ETPs holding BTC as underlying, recorded a 7.3 per cent decrease from USD72.8 billion at the end of Q1 2024. During the same time, BTC price dropped 11.2 per cent to USD61,850 from USD69,650 recorded at the beginning of Q2. These statistics underscore the significant impact of the BTC Spot ETFs launch on the premium growth for ETPs holding digital assets.

During June, Ethereum (ETH) decreased 9.9 per cent in value to USD3,409 from USD3,784 recorded at the end of May. In the same period, the AUM of ETPs holding ETH as underlying dropped 8.2 per cent, to USD14 billion from USD15.3 recorded at the end of May. In Q2, ETH price decreased 2.8 per cent from USD3,508 at the end of Q1. During the same time, ETH-denominated ETPs AUM decreased 1.9 per cent from USD14.3 recorded at the beginning of Q2.

The data indicates a slight premium for ETPs holding ETH as the underlying asset following the announcement of ETH Spot ETF approval in the US. This premium is expected to significantly increase, however, once the ETFs start trading as a presumed consequence of additional inflows.

ETPs representing an index of alternative coins dropped 10 per cent in AUM during June, to USD3.23 billion, from USD3.36 billion recorded at the end of May. During Q2, the drop was 17.2 per cent from USD3.9 billion at the end of Q1.

ETPs representing a diversified basket of cryptocurrencies decreased by 4.9 per cent in June, to USD3.09 billion from USD3.25 billion recorded at the end of May. In Q2, the total drop was 7.9 per cent from USD3.36 billion at the end of Q1.

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