Fineqia International Inc.’s analysis of global Exchange Traded Products (ETPs) with cryptocurrencies as underlying assets, revealed a 39% increase in the Assets Under Management (AUM) value during the month of Jan, while the cryptocurrency market value increased by 33% during the same period, reflecting an 18% premium in ETP values due to investment inflows and asset value increase relative to overall crypto asset valuations.
The market value of cryptocurrencies surpassed the $1 trillion mark for the first time since early Nov. 2022, closing the month at $1.05 trillion, up from $800 billion in Dec. The year-on-year data show a 37% decrease in the total crypto market cap compared to the $1.7 trillion total value observed on Feb.1, 2022.
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Total crypto ETP AUM increased to $27 billion from $20 billion between Jan.1 and Feb.1, according to Fineqia Research. Two new ETPs came to market in Jan., bringing the total ETPs to 164 from 162 previously listed. The ETPs include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs).
“It’s encouraging to see a robust recovery in the market, given the challenges faced in 2022,” said Bundeep Singh Rangar, CEO of Fineqia. “With declining inflation and a slowdown in interest rate increases, financial markets are finally getting some much-needed relief.”
The price of Bitcoin (BTC) reached about $22,800 on Feb.1, a 38% increase to $16,600 recorded on Jan.1. In the same period, the AUM of ETPs holding BTC increased 41% to $19 billion from $13.5 billion.
During Jan, Ethereum (ETH)’s price increased to about $1,550 from $1,200, reflecting a 31% rise in value. The AUM of Ethereum (ETH) denominated ETPs closely followed with a 35% increase to $6.7 billion on Feb.1, from $5 billion on Jan.1.
ETPs representing alternative coins increased by 37%, and those with a basket of cryptocurrencies rose by 29%. Year-on-year data still reveals a 40% decrease in price for both Bitcoin and Ethereum, but the current price level is the highest recorded since July 2022 for BTC and Sept. 2022 for ETH, highlighting the positive trend during the month of January.
All references to price are quoted in USD, and all cryptocurrency prices are sourced from CoinMarketCap.
Data referenced on ETP, and ETF AUM were compiled from publicly available sources, including 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc., and TrackInSight SAS by Fineqia’s in house research department.
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