Fineqia International Inc. (the “Company” or “Fineqia”) (CSE: FNQ) (OTC: FNQQF) (Frankfurt: FNQA) analysis of global cryptocurrency exchange-traded products (ETPs) as underlying asset is lower Assets under management (AUM) fell 17% in November, closely mirroring the decline in the market value of cryptocurrencies over the same period.
According to Fineqia Research, the total volume of the 163 listed ETPs fell from 25.3 billion USD to 21 billion USD between November 1 and December 1. Two ETPs whose underlying was the FTX token (FTT) ceased trading, while six new ETPs were added, bringing the total number of ETPs listed in 2022 from 159 to 163. had no impact on the overall metrics, totaling approximately $5 million.
ETPs include exchange-traded funds (ETFs) and exchange-traded notes (ETNs). Total cryptocurrency value fell 15% in November to around $850 million, down more than 60% from January’s $2.2 billion.
On a year-over-year basis (YTD), crypto ETP assets under management fell 64%, matching the 61% drop in the broader crypto market. Despite a 50% increase in the number of FTEs to 163 in November from 109 in January, their total assets were $21 billion from $58.5 billion in January. The price of Bitcoin fell 65% while Ethereum fell 67% over the period from January to November 2022.
“The price of cryptocurrencies fell following the bankruptcy of FTX in early November,” said Bundeep Singh Rangar, CEO of Fineqia. “We continue to battle contagion from the FTX bankruptcy, which has weakened the financial position of other companies and pushed some into bankruptcy.”
A number of cryptocurrency-related companies have revealed some level of exposure to the collapse of the FTX cryptocurrency exchange. These companies include Binance, BlockFi, Coinbase, Coinshares, Galaxy Digital, Genesis Global Trading, and Voyager Digital, among others.
The drop in the price of ETH is due to the sale of ETH by suspected FTX hackers. They are estimated to have sold over 50,000 ETH and still hold over 200,000 ETH. Further selling from them could drive the price of ETH further down.
The AUM of ETPs denominated in Ethereum (ETH) fell by 18%, while the price of the cryptocurrency fell by 23%, from near $1,600 to around $1,200. Their assets under management have grown from $6.5 billion to $5.3 billion. ETH has been one of the most volatile crypto assets in both uptrends and downtrends over the past few months.
ETPs holding bitcoin (BTC) fell nearly 17% in November, from $16.8 billion to $14 billion. It outperformed BTC, which was down 20% on December 1 to around $16,500 from $20,600 a month earlier. Alternative coin ETPs fell 15% and cryptocurrency basket ETPs fell 17%.
All figures are in USD and all cryptocurrency prices are from CoinMarketCap.
All ETF and ETP AUM amounts have been compiled by Fineqia’s internal research department from publicly available sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., MorningStars, Inc. and TrackInSight SAS.
About Fineqia International Inc.
Fineqia (www.fineqia.com) is a public company in Canada (CSE: FNQ), the United States (OTC: FNQQF) and Europe (Frankfurt: FNQA). Fineqia’s strategic direction is to provide a platform and related services to support securities issuance and debt management. Fineqia is currently expanding its alternative finance business and currently has a growing portfolio of blockchain, fintech and cryptocurrency technology companies around the world.
Katarina Kupcikova, Analyst, Email:email@example.com, Tel: +44 7806 730 769; Bundeep Singh Rangar, CEO, Email: firstname.lastname@example.org, Tel: +1 778 654 2324
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