Digital assets: global crypto ETP AuM up by 50% YTD, protected structures gain traction

Global exchange-traded products (ETPs) with digital assets as underlying collateral have recorded a 51% growth in total assets under management (AuM) year-to-date (YTD) amid renewed interest from investors, according to Fineqia International.

In August, total crypto AUM decreased 11% to US$30.2 billion from US$34 billion - the decrease mirrored the drop in value of digital assets during the same period

Year-to-date, total crypto AUM shows a premium growth of 63.5% compared to the underlying value of digital assets, which grew more slowly at 31.5% since the beginning of the year. In August, total crypto AUM decreased 11% to US$30.2 billion from US$34 billion - the decrease mirrored the drop in value of digital assets during the same period. The market value of crypto assets fell 11% to US$1.05 trillion from US$1.17 trillion.

The price of bitcoin (BTC) decreased 11% in August, to US$26,000 from US$29,200 recorded on 31 July - the AUM of ETPs holding BTC correspondingly dropped by 10.7%, to US$21.3 billion from US$23.8 billion. 

The performance of Ethereum (ETH) which fell 11.2% in value to US$1,646 was also mirrored by ETH-denominated ETPs which saw their AuM decreasing 10.9% to US$6.8 billion on 31 August, compared with US$7.6 billion a month earlier.

ETPs representing a basket of cryptocurrencies decreased 13.1% in AuM, and ETPs representing alternative coins index decreased 16.2%.

Bitget unveils fully protected snowball play

Crypto derivatives and copy trading exchange Bitget has launched the Bitget Snowball, its groundbreaking structured investment product aimed at sophisticated investors.

The new instrument will provide users with up to 24.5% APR with no risk to the capital invested. The Bitget Snowball structure aligns with the overall "trade smarter" philosophy the firm has been using among a younger and more market-knowledgeable audience of users.

The Bitget Snowball is designed to help users navigate the ever-evolving cryptocurrency market landscape with a heightened level of confidence and security, while maintaining a relatively low-risk profile, according to Gracy Chen (right), managing director at Bitget.

‘Our commitment to empowering users with smart and secure trading solutions is unwavering,’ said Chen. ‘With the launch of Snowball, we are redefining the crypto investment landscape. Snowball isn't just a product; it's a testament to our dedication to helping users trade smarter and more confidently in the dynamic world of cryptocurrencies.’

A snowball is a principal-protected structured financial product linked with the investment portfolio of the options market. The new product leverages the previously released Bitget Earn feature to optimise earnings and safeguard principal - the product is sustained by cumulative yields and avoids extreme market risk under enhanced capital utilisation.

The Bitget Snowball is designed for users of both bullish and bearish approaches. the bullish option is focused on safeguarding users' principal while predicting future prices to fluctuate moderately or experience slight increases within specific price ranges. the bearish option is best suited for users aiming to protect their principal while predicting future prices to fluctuate moderately or experience slight decreases within specific price ranges.

Bitget will provide all subscribing users with a comprehensive scale chart of knock-in and knock-out prices for both bullish and bearish scenarios - users of the snowball will have the right to early redemption as well, the latter being based on the accumulated APR at the time of submitting the early redemption application.

WisdomTree introduces staking in physical ether ETP

Asset manager WisdomTree has enabled staking in its physically-backed ether ETP to capture yield that ranges from four to eight percent pa, according to the company’s announcement.

The ETP – WisdomTree Physical Ethereum (ETHW) – is listed on Börse Xetra, SIX, the Swiss Stock Exchange, and Euronext exchanges in Paris and Amsterdam and has a total expense ratio of 0.95%.

Using Ethereum’s native cryptocurrency as the underlying, the staking feature on the fund allows investors to access the crypto assets without the need to hold them directly, store private access keys, or interact with the blockchain infrastructure, stated the firm.

‘Staking has the potential to make investing in cryptocurrencies more attractive for investors,’ Alexis Marinof (right), head of Europe at WisdomTree, said in the statement.

ETHW became the second ETP to provide a staking reward in WisdomTree’s cryptocurrency product range, following the step of WisdomTree Physical Solana (SOLW). The custodians for WisdomTree’s ETPs are Swissquote and Coinbase Custody Trust Company, according to the firm.

StanChart-backed digital asset platform gets ‘green light’ in Abu Dhabi

Zodia Markets, a digital asset platform backed by Standard Chartered Ventures, has secured approval in principle from the Abu Dhabi Global Market to operate as an over-the-counter (OTC) crypto broker-dealer in Abu Dhabi, the firm stated in an announcement.

According to the Standard Chartered-backed firm, its expansion in the UAE provides institutional investors from the Middle East and Africa with access to ‘this growing, alternative asset class.’

‘Abu Dhabi has already established a clear and forward-looking virtual asset regulatory framework,’ Andrew Price (right), chief compliance officer of Zodia Markets, said. ‘This early adoption and foresight have enabled it to attract innovation, talent and investment while raising the bar for compliance in virtual asset firms’.

In July 2022, the firm announced it received crypto asset registration from the UK Financial Conduct Authority and officially launched its institutional crypto exchange and brokerage business.

Finery announces new hires

Finery Markets, a Limassol-based OTC multi-dealer marketplace for crypto firms and institutions, has appointed Krish Chatterjee as an advisory member for business development in Asia Pacific (Apac).

Chatterjee previously served as a business development consultant at Infinito Blockchain Labs and an international sales and business development manager at Digital Treasury Corporation.

Chatterjee’s appointment was followed by several executive hires at the firm earlier this summer, including Tom Gould as the director of strategic partnerships, Stanislav Bublik as the new chief product officer, and Ruben Frimand Nielsen as the new strategic advisor to the management.

Image: Angelov/Adobe Stock.