EToro is launching a digital art fund as a first step toward expanding NFT investment services.
Manager Guy Hirsch claims that by entering the NFT market, his company will be able to broaden its pool of potential investors and business partners in the United States.
Hirsch, on the other hand, believes that the processes for valuing and appraising digital art are becoming more sophisticated.
eToro, a trading platform, announced a $20 million fund to purchase NFTs and support the creators of these tokens. The Bass, a contemporary art museum in Miami, was the site of the company’s announcement on Thursday.
eToro, a trading platform, has launched a new fund called art, which is aimed at artists and brands involved in the NFT sector.
Guy Hirsch, eToro’s managing director in the United States, stated that the new fund is the first step in the company’s larger NFT strategy, which will eventually include a variety of services to allow investors to participate in the emerging market.
A nonfungible token (NFT) is a digital representation of a physical object that cannot be replicated in the digital world.
Previously, only Goldman Sachs and other traditional financial institutions were interested in bitcoin and ether, according to Hirsch. “NFTs effectively turn any and every potential brand into a participant” in this market.
eToro displayed a selection of its digital art collection, which includes well-known works such as the Bored Ape Yacht Club, CryptoPunks, and World of Woman, as part of this new initiative.
eToro also plans to invest $10 million this year to support new NFT projects from emerging creators and brands.
NFTs can be used in a variety of ways, but digital art is just one of them. Hirsch stated at eToro that the company intends to expand its offerings beyond digital art.
Coca-Cola, Nike, McDonald’s, Nike, Gucci, and the National Football League are among the brands that have recently begun to use NFTs in their marketing campaigns.
The Economic Value Of Digital Art
The $69 million sales of Beeple’s work at Christie’s demonstrates a lack of understanding among investors about the value of digital art.
Hirsch believes that price discovery and knowing what to buy are still unanswered questions in the digital art market. Today, investors commonly use the floor price or the smallest amount of money that can be spent to acquire an item from a collection.
“It needs to be more advanced,” Hirsch said. New services similar to traditional art appraisal will emerge in the near future.
If you plan to buy or own something in the next year or two, you’ll be able to get a rough estimate of its value from a market-agreed-upon third-party service.
According to Hirsch, art has been a strong asset class for decades, but only for the super-rich. In any case, EToro’s goal is to bring together new investors and new artists in order to help them both financially prosper.
The largest NFT market, OpenSea, already sells NFTs from some of eToro’s “blue-chip” projects for hundreds of thousands of dollars.
Many of the lesser-known digital artists whose work the company hopes to help bring to market will not be priced as high as the Bored Ape collection, which has attracted celebrity buyers.