KuCoin, the global crypto exchange, has officially become the first centralized exchange to launch NFT ETFs (exchange-traded funds). Launched on Friday, July 29, the new product offers retail investors a chance at fractional ownership of blue–chip NFT collections.
On Friday, KuCoin launched its NFT ETF Trading Zone, with an aim to improve the liquidity of NFT assets. Essentially, the new product from the exchange will lower the investment threshold of blue-chip NFTs. KuCoin launched the NFT ETFs in partnership with Fracton Protocol, which fractionalizes high-value NFTs into Ethereum-based ERC-20 tokens. It has launched USDT-dominated ETF for specific blue chips. In other words, collectors can now invest in high-potential NFTs by paying directly with USDT, instead of ETH.
How does it work?:
, the KuCoin NFT ETF Trading Zone has listed five NFT ETFs. This includes hiPUNKS, hiBAYC, hiSAND33, hiKODA, and hiENS4. To explain, hiBAYC is an ERC-20 token that represents 1/1,000,000 ownership of the BAYC NFT collection. To be sure, Bored Apes are one of the most expensive NFTs in the market. Currently, the cheapest BAYC will cost you around $146,000 (at a floor of 85.83 ETH). Instead of paying such a hefty sum, KuCoin ETFs will enable you to own a BAYC at a fraction of the price.
KuCoin was launched in September 2017 and headquartered in Seychelles, KuCoin is a global cryptocurrency exchange. At present, the platform offers more than 700 digital assets to its 20 million users. It supports spot trading, margin trading, P2P fiat trading, futures trading, staking, and lending.
She is a writer based in the India. She loves to write about the things that spark her interest like tech, art, blockchain, metaverse and NFTs.
