Fineqia International Inc (CSE:FNQ, OTC:FNQQF) has highlighted a “watershed year” for digital assets as its analysis of global Exchange Traded Products (ETPs) with digital assets as underlying collateral revealed a 205% year-on-year increase in assets under management (AUM), reaching an all-time high of $151 billion in 2024.
This growth significantly outpaced the broader digital asset market, which rose 91.7% in capitalization to $3.39 trillion from $1.77 trillion at the year's start.
The company attributed the sharp rise in exchange traded products (ETP) AUM, which includes exchange-traded funds (ETFs) and notes (ETNs), to consistent net inflows and key milestones during the year, including the introduction of Bitcoin (BTC) and Ethereum (ETH) spot ETFs and the US presidential election.
“2024 was a watershed year for digital assets, with BTC spot ETFs breaking the dam and ETH spot ETFs widening the stream,” said Fineqia CEO Bundeep Singh Rangar in a statement.
The launch of BTC spot ETFs in January 2024 was a major catalyst for sustained inflows throughout the year. Similarly, the rollout of ETH spot ETFs in July drove strong inflows in the fourth quarter. BTC spot ETFs alone attracted $35.2 billion in net inflows over the year, accounting for the bulk of the growth in AUM.
Sentiment was further bolstered by the victory of Donald Trump in the November US presidential election, as he signaled support for digital asset adoption.
In the fourth quarter, AUM for digital asset ETPs surged 70%, rising to $151 billion from $88.8 billion at the end of the third quarter. Despite a 4.9% dip in total digital market capitalization in December, ETP AUM continued to rise, reflecting consistent net inflows during the month. Bitcoin, whose price increased 121% in 2024 to close the year at $93,425, saw the AUM of its ETPs grow 250% to $124.6 billion. In the fourth quarter alone, Bitcoin’s price rose by 46.6%, with ETP AUM climbing 72.8%.
Ethereum also saw significant growth in 2024, with its price rising 46.3% to $3,332. The AUM of ETH ETPs surged 72.1% to $16.3 billion for the year, fueled by the launch of ETH spot ETFs in July. These ETFs recorded $2.7 billion in net inflows during the year, with $2 billion coming in December alone.
ETPs representing diversified crypto baskets also experienced substantial growth, with AUM increasing 87.8% to $4.23 billion over the year. ETPs holding alternative coins saw their AUM grow by 160% in 2024, reaching $5.79 billion.
Although December brought a slight decline in some categories, the fourth quarter as a whole reflected strong performance, driven by increased investor interest and market momentum.