Fineqia International Inc (CSE:FNQ, OTC:FNQQF) reported a 2.5x surge in global Exchange Traded Products (ETPs) with digital assets as underlying collateral, propelling total Assets Under Management (AUM) to nearly $50 billion from $20 billion in 2023.
In a statement, Fineqia said its analysis revealed a substantial 19% premium growth in worldwide crypto ETPs AUM compared to the underlying digital assets, which grew at a slower rate of 123%.
The surge is primarily attributed to Bitcoin's commanding 72% share of ETP AUM, surpassing its 53% share in the overall digital asset market.
Fineqia CEO Bundeep Singh Rangar acknowledged Bitcoin's role in the growth.
"BTC was the sled dog pulling the (digital asset) ETF sleigh this season,” he told shareholders. “Investors believe they might even have sighted a Santa at the SEC.”
During 4Q, ETPs with Bitcoin as the underlying asset experienced 64% AUM growth to $35.6 billion, fueled by a 57% rise in BTC price to $42,300. Throughout the year, BTC-denominated ETPs witnessed a remarkable 162% growth, outpacing the 155% increase in the underlying BTC price.
Investors are eagerly anticipating potential submissions from 13 issuers, including Blackrock, Fidelity, Grayscale, and VanEck, for spot Bitcoin ETFs, with approval expected by the Securities and Exchange Commission (SEC) in the US as early as this week.
The total AUM of ETPs holding digital assets witnessed a robust 62% growth to $49.5 billion in 4Q, marking a $19 billion increase from the end of 3Q. This growth surpassed the 53.8% increase in the market cap of all digital assets, reaching $1.77 trillion from $1.15 trillion during the same period.
December alone saw a 14% increase in total crypto AUM from November, reaching $43.4 billion, while the market value of crypto assets rose by 19%, totaling $1.43 trillion. Ethereum (ETH) also experienced a surge, rising 11.5% in value to $2,277 during December, with ETH-denominated ETPs AUM growing faster at 14.2% to $9.4 billion.
ETPs representing a diversified basket of cryptocurrencies recorded a 23.9% increase in AUM in December, marking a significant 138% increase over the course of 2023. ETPs holding individual altcoins showed a 165% AUM increase during the year, reaching $2.23 billion.
The comprehensive analysis by Fineqia Research tracks 171 ETPs, including Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs), factoring in launches or closures during any stated period.