eToro has a $20 million fund to purchase NFTs. The launch of The Bass, a contemporary art museum in Miami, was announced by the firm Thursday.
The eToro.art initiative aims to support NFT creators and brands.
The new fund marks the beginning of a larger NFT strategy for the company, which will eventually offer a multitude of services to allow investors to participate in the emerging economy.
Digital assets such as art, music, real estate and beyond can't be replicated and are referred to as NFTs.
Before the introduction of ether, you had only the likes of Goldman Sachs or similar traditional financial players participating.
As part of its new initiative, eToro showcased its digital art collection, which includes well-known projects, including the Bored Ape Yacht Club. In order to support emerging creators and brands in bringing their new NFT projects to market this year, eToro plans to commit $10 million.
Digital art is only one use case. eToro plans to give customers exposure to use cases beyond digital art.
Coca-Cola, McDonald's, Nike, Gucci, and the National Football League have all brought NFTs into their marketing initiatives in the past few months.
Any brand can home in on this and create an NFT that represents an ownership stake in part of the brand.
Beeple's piece, which sold at Christie's for 69 million dollars, is one of the reasons why investors are confused by the value of digital art.
The industry is working on price discovery and knowing what to buy in digital art. The floor price is the minimum amount of money you can spend to buy an item from a collection.
It needs to be more sophisticated than that. We will have third-party services within a year or two that will appraise individual pieces and give you an approximate price for what you own in a way that would be agreed on by market participants.
Art has been a strong asset class for a long time, but only for the rich. New artists and investors can be brought together to help build their wealth in a new way.
NFTs from some of the blue-chip projects in eToro's collection go for a minimum of hundreds of thousands of dollars on OpenSea. The company expects that many of the lesser-known digital artists whose work it will help bring to market won't be priced like a Bored Ape.
If the community is strong and the art is promising, people would be able to participate.
He said that some of them will reach the point of Bored Ape status.
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