Fineqia International Inc (CSE:FNQ, OTC:FNQQF), the digital asset and investment company, reported that October saw a record level of assets under management (AUM) for exchange-traded products (ETPs) linked to digital assets, such as bitcoin or ethereum.
The group’s AUM reached $100.5 billion in October, a 13.2% increase from $88.8 billion at September's end and surpasses the previous peak of $95.4 billion in May 2024.
The surge aligns with an 8.9% rise in the overall digital asset market value to $2.54 trillion, driven by steady year-to-date growth, which now stands at 43.3% from $1.8 trillion at the close of 2023.
Fineqia noted that ETP AUM has grown by 102.9% year-to-date, significantly outpacing the broader digital asset market's expansion.
A statement from the company attributed the increase in AUM to the strong inflows seen since the introduction of spot bitcoin (BTC) ETFs on January, which have collectively drawn in about $24.2 billion.
In October, Ethereum (ETH) ETPs also experienced net inflows, enhancing overall ETP growth.
"BTC spot ETFs continue to be the anchor in the market, pulling in the strongest flows," said Fineqia's CEO Bundeep Singh Rangar. "In recent weeks, ETH spot ETFs have also begun to catch a current, with inflows and premiums indicating growing interest from investors keen to explore assets beyond Bitcoin."
In October, the price of BTC rose by more than 10%, reaching $70,350 from $63,725 in September. Concurrently, the AUM for BTC ETPs jumped 15% to $83.2 billion, eclipsing May's prior peak by 14%.
Since the start of the year, BTC’s price has climbed 66%, while BTC ETPs’ AUM has soared by 134%, indicating a premium for BTC ETPs over the underlying asset.
In contrast, ETH saw its price dip almost 4% in October to $2,521. Despite this, the AUM for ETH ETPs rose slightly to $10.3 billion, reflecting increased investor interest in ETH-based ETPs despite recent outflows from products like the Grayscale Ethereum ETF (ETHE), which converted from a trust earlier this year. This conversion initially drove significant outflows but has recently shown a reversal with two consecutive weeks of positive inflows.
The ETPs covering alternative coins and diversified crypto baskets also posted gains, with AUM for alternative coin ETPs rising 6.5% to $3.65 billion in October, and diversified ETPs gaining 7.5% to reach $3.26 billion.
Fineqia Research’s analysis of global digital asset ETPs, now tracking 219 products as of October, considers various data sources, including 21Shares, Grayscale, and VanEck, with price information from CoinMarketCap and CoinGecko.