Fineqia International Inc (CSE:FNQ, OTC:FNQQF) earlier this week reported a 41% increase in assets under management (AUM) for its crypto exchange-traded products (ETPs) during the last quarter. The company said this growth outpaced the broader cryptocurrency market, which saw a 24% gain, resulting in a 72% performance premium for structured products.
Senior associate Matteo Greco told Proactive that the increase reflects a broader trend that began with the approval of Bitcoin Spot ETFs in the US in January 2024. He said these products appeal to investors seeking exposure to digital assets without the operational or legal complexities of holding cryptocurrencies directly.
Proactive: You're out with your monthly report, which shows that ETPs saw a 41% jump in assets under management last quarter. What's driving the strong investor preference for structured crypto products over direct holdings?
Matteo Greco: Yes, we've seen a 41% increase in AUM for crypto ETPs in the last quarter. Compared to the total crypto market cap increase of 24%, that’s about a 72% premium for the structured products.
This trend has been ongoing since the start of 2024, coinciding with the approval of Bitcoin Spot ETFs. These products appeal to both retail and institutional investors who are familiar with traditional finance. Holding crypto directly can be complex, and the main selling point of these products is they remove that complexity while allowing exposure to a new asset class. This is what's driving strong demand, especially in North America, but also globally.
Bitcoin ETPs are now worth over $150 billion. How do you interpret this outperformance compared to Bitcoin's actual price growth?
Yes, a pivotal moment was January 2024 when the Bitcoin Spot ETFs were approved in the US. This gave unprecedented visibility and access for traditional investors. These products reduce operational and legal frictions compared to holding crypto directly.
Since then, we’ve had a positive snowball effect. When approval came, Bitcoin was at around $40,000. Now it’s about three times that. The price increase drove demand, and increased demand pushed prices higher—driving ETP performance far beyond where it was one or two years ago.
Moving on to Ethereum, Ethereum ETPs bounced back in the second quarter despite Ethereum's weak price. What does that say about changing investor sentiments?
Ethereum is a bit tricky. Recently, we've seen strong performance which will likely show in the July report. Over a broader timeframe, though, price action has been unstable.
Yet, in Q4 2021, Q1 2025, and Q2 2025, only March showed net outflows for Ethereum ETPs. Despite weak price performance, demand has been strong, driven by the success of Bitcoin ETFs. This is helping offset Ethereum’s price struggles and suggests growing interest in crypto assets more generally.
Altcoin ETPs continue to lag while basket products are gaining. Are investors becoming more risk averse?
This ties into my last point. Europe was first to allow a broad set of crypto assets in ETPs. But in 2024–2025, North America saw broader adoption, reaching a wider audience.
Altcoin ETPs have been in Europe for some time, so we haven’t seen a demand shock. But that could change. We’ve recently seen Solana and Ripple ETFs launched in Canada. I think we’ll see growth in AUM for altcoin ETPs in the coming months.
You talk about a structural shift in crypto investing. Do you expect the momentum behind digital asset ETPs to hold into 2026?
It’s hard to predict the future, but since early 2024 we've seen consistent inflows—first Bitcoin, then Ethereum. More issuers are now filing for other assets in North America.
Earlier in 2025, Bitcoin dropped from $109,000 to about $70,000, a 30% loss. But net outflows from Bitcoin ETPs were only about 15%. That shows these investments are largely long-term. It gives me confidence that even in downtrends, these products will still attract demand. While momentum matters, the track record suggests steady growth.
Quotes have been lightly edited for style and clarity