KuCoin hits a new milestone by becoming the first exchange with NFT ETFs
Cryptocurrency exchange KuCoin recently emerged as the first ever crypto platform to offer NFT ETFs. As a result, the exchange can now allow its investors to buy fractional ownership of non-fungible tokens, which is a significant move that will give ordinary people access to high-profile NFTs.
So far, NFT collections like Bored Ape Yacht Club have been too expensive for most retail investors, but with NFT ETFs, things will change for KuCoin’s clients.
NFT ETFs are now available
KuCoin is able to offer NFT ETFs thanks to its partnership with Fracton Protocol. This is a service that aims to fractionate NFTs and turn them into fungible ERC-20 tokens. Of course, with the 8 months of the bear market pushing prices in the crypto industry down, the NFT sector also felt the consequences and even the biggest and most robust NFTs have seen a drop in value.
Even so, CoinGecko data shows that the blue-chip NFTs, such as the BAYC collection, are still extremely expensive, with Bored Ape tokens valued at $144,000 (86 ETH) per piece at the time of writing. After fractionalization, KuCoin ERC-20 tokens representing the BAYC NFTs offer ownership of 1/1,000,000 of the actual pool. This makes them much more accessible.
Initially, KuCoin’s NFT ETF sector will offer 5 NFT ETFs. It will include hiBAYC, hiPUNKS, hiKODA, hiSAND33 and hiENS4. However, over time, KuCoin plans to further expand this list and add more popular collections to the mix.
Adding support for NFT ETFs does more than just lower the bar for investors interested in owning expensive NFTs. It also removes the need to manage NFT infrastructure elements, including smart contracts or wallets.
KuCoin is only getting started with fractional NFTs
Commenting on the new development, the exchange’s CEO, Johnny Lyu, noted that the trading platform is very excited to become the first centralized crypto exchange to support NFT ETFs. This will provide users who have always wanted to invest in top NFTs but could never afford them. Now they will be able to trade them directly with USDT. Lyu also confirmed that KuCoin will continue to explore more NFT-related products for the benefit of its users, and tokenize all the most sought-after assets.
KuCoin already offers a number of services other than regular trading. The list is long, and it includes spot trading, margin trading, futures trading, lending, P2P fiat trading, as well as staking. The exchange offers these services to more than 20 million users located worldwide, in 207 different countries and regions of the world.
With the new offering, the number of users could increase even more, as the NFT sector attracted many new individual collectors to the crypto industry after it exploded in early 2021.
To learn more visit our Best NFTs Project Guide.
