Miami Beach, Florida saw art enthusiasts of all types flock to one of the world’s premier art events this week, but this year’s crowd also included crypto enthusiasts, investors, and capital investors. risk, reports CNBC.
This year, Art Basel included a slew of blockchain events in the city as well as a number of NFT exhibits as art admirers and crypto investors mingled. NFTs are one of the hottest trends in crypto right now, where property rights are sold for real or virtual world objects. Artists, musicians and celebrities have all jumped into the craze, and the space sees around $ 2 billion in investment per month, according to JPMorgan estimates.
It is widely seen as an unsustainable level of influx, but the underlying blockchain technologies enabling NFT markets may have a longevity that could outlive this recent fad.
“There’s definitely a lot of hype,” said Mike Shinoda, musician and co-founder of Linkin Park, which released a new NFT mixtape this week. “Most people believe there is a version of a bubble. But most of us who are in space think that whether it goes up or down, it’s a new thing that’s here to stay in a version of itself.
Blockchain technology can be difficult and confusing for a lot of people to understand, but the art is something they can easily appreciate. FTX US chief strategy officer Tristan Yver believes digital art can be an easier way to introduce people to the concept of crypto.
“We all have a basic understanding of art. We don’t all have a basic understanding of cryptocurrencies and blockchain – it’s the next step towards mass adoption, ”Yver told CNBC. “NFTs are the first time many people have made a connection with cryptocurrency and blockchain.”
NFTs could be the starting point for people who would otherwise have no reason to interact with or learn more about the crypto space. Blockchain technology and the DeFi revolution continue to garner increasing attention, both from the public and increasingly from regulators. For now, the space remains unregulated and the options seem limitless.
“Once people get into NFTs, they want to know more about everything that’s going on in the blockchain – it’s impossible not to fall into the rabbit hole,” said Packy McCormick, Founder of Not Boring Capital . “There are going to be a ton of people going to speculate. But important projects will have sustainability and over time, quality will win out. “
Invest in NFT fundamentals with BITQ
For investors wishing to gain exposure to the potentials of the NFT space and the underlying blockchains behind this most recent development in the crypto space, the ETF Bitwise Crypto Industry Innovators (BITQ) offers both.
BITQ tracks the Bitwise Crypto Innovators 30 Index, an index with at least 85% allocation to companies that are cryptocurrency exchanges carrying bitcoin and other cryptocurrencies, crypto miners, companies in mining equipment and service providers. The remaining 15% is allocated to large-cap support companies, with at least a large portion of their business dedicated to crypto.
BITQ carries crypto companies such as Coinbase Global Inc (COIN) at 10.11%; Coinbase is working on creating an NFT marketplace and currently has a waitlist on its website. BITQ also offers crypto miners such as Hut 8 Mines (HUT CN) at 4.36%, and other crypto investment firms that work in NFT spaces, such as Galaxy Digital Holdings (GLXY: TSE) at 10.26%.
The fund has an expense ratio of 0.85% and net assets of nearly $ 130 million.
For more news, information, and strategy, visit Crypto Channel.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.