Could Bitcoin ETFs Revive NFT Market?
The U.S. SEC’s approval of Bitcoin ETFs is expected to boost the NFT market and attract more investors.
The United States Securities and Exchange Commission (SEC) recently greenlit the first spot Bitcoin exchange-traded funds (ETFs). This landmark decision could revive the struggling nonfungible token (NFT) sector, according to Web3 experts.
Bitcoin ETF Approval
Cypher Capital’s Chairman, Bill Qian, emphasizes the ripple effect of Bitcoin ETFs’ approval on NFTs, viewed as “alternative assets.” Qian suggests that mainstream finance’s increasing embrace of Bitcoin, catalyzed by the ETF approvals, is likely to extend to NFTs. The increasing recognition and comfort with Bitcoin could heighten interest and investment in NFTs. Qian highlights that the broadening familiarity with digital assets could pave the way for NFTs to be recognized as legitimate investments parallel to Bitcoin.
Atlas Development’s CFO, Oscar Franklin Tan, reinforces the sentiment that the approval of Bitcoin ETFs will bolster the NFT sector. Tan points out the integration of NFTs within Bitcoin, referring to the Ordinals protocol which recently recorded substantial sales volume. Moreover, he notes that the SEC’s endorsement of Bitcoin for retail investors through ETFs is a significant validation for the entire digital asset space.
Furthermore, Tan anticipates that following Bitcoin ETFs, Ether ETFs might be the next big step, which could renew interest in Ethereum-based NFTs. He believes this will refocus attention on established Ethereum NFTs like Bored Ape Yacht Club and CryptoPunks, which boast robust histories and communities compared to Bitcoin-based NFTs.
Integration of Traditional Finance and Crypto
Sergey Sheleg, Chief Product Officer of Web3 social platform Nicegram, views the intertwining of traditional financial structures like ETFs with crypto as a positive development for NFTs. Furthermore, he argues that evolving regulations around digital assets will benefit NFTs, which have transcended their initial hype to find practical applications in areas like ticketing, fractional art ownership, and identity management.
Dirk Lueth, Co-founder of NFT gaming platform Upland, believes that the introduction of ETFs will mitigate perceived risks and complexities associated with entering the crypto market. Consequently, this will encourage more people to explore the NFT space. Moreover, Lueth predicts that the market will witness increased liquidity, reduced price volatility, enhanced infrastructure, and regulatory clarity. He asserts that the ETF approvals not only raise awareness but also affirm the crypto industry’s long-term viability in the U.S.