Following the adoption of the Bitcoin ETF, NFTs are back in the spotlight
As the United States Securities and Exchange Commission (SEC) has approved the first Bitcoin Exchange Traded Funds (ETFs) in the United States, Web3 experts argue that the approval could boost the dwindling ecosystem of crypto tokens (NFTs).
Just in time: SEC Approves Bitcoin ETF!https://t.co/HpebjhDQJ1
— Cointelegraph (@Cointelegraph) January 10, 2024
Bill Qian, chairman of the crypto investment firm Cypher Capital, said that the place where Bitcoin (BTC) realizes “alternative assets” such as NFTs is an “indirect benefit” from the acceptance of ETFs in the United States. Qian believes that the adoption of ETFs will play a crucial role in mainstream finance's adoption of BTC and will likely influence NFTs.
“Bitcoin's increasing awareness and acceptance could flow upstream, increasing investors' curiosity and interest in NFTs,” Qian explained. He added that expanding knowledge and comfort with digital assets could lead to a “wider embrace of NFTs” as a viable investment alongside BTC.
Oscar Franklin Tan, chief financial officer of Atlas Development, a major contributor to the NFT platform Engine, believes that the spot Bitcoin ETF approval will “grow NFTs.” “Bitcoin has NFTs,” the executive argued, referring to the Ordinal protocol, which has sold more than $800 million in the past 30 days.
The executive also told Cointelegraph that the ETF approvals are “an important confirmation”, indicating that the largest digital asset is now SEC-approved for retail. he said:
“Nobody needs to explain anything. You can just point to ETFs, complete with big names like BlackRock, Fidelity and Coinbase.
In addition, after the spot Bitcoin ETFs, Ether (ETH) ETFs may be next, bringing renewed interest in Ethereum-based NFTs. Tan added, “This brings attention to the early Ethereum NFTs, such as Bored Up Yacht Club and Cryptopunks, which have more history and established communities than Bitcoin NFTs.”
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Sergey Sheleg, Chief Product Officer of Web3's social platform Nicegram, described the integration of traditional financial structures such as ETFs with crypto as a positive sign for the NFT market. The executive believes this will improve confidence and foster institutional engagement in the NFT space.
The executive believes that the regulations around digital assets are evolving very quickly, and this will “help the cause of NFTs” beyond the initial incentive and impact use cases such as ticketing, fractional art ownership and identity management.
Meanwhile, Dirk Lueth, co-founder of NFT gaming platform Upland, said ETFs reduce the risk and complexity of entering the crypto market. This creates greater convenience in extending buying activities in the NFT space.
Lute believes this will grow with market liquidity, expected reductions in price volatility, better infrastructure and greater regulatory transparency. The executive also said that the approval will raise awareness and ensure that the crypto industry is “here to stay and has a future in America.”
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