Crypto Trading Platform eToro Releases $20 Million NFT Fund
eToro disclosed that it plans to commit $10 million to support emerging creators and brands in bringing their new NFT projects to market this year.
eToro, a social trading and multi-asset brokerage company, announced the company’s move to launch a $20 million fund to purchase non-fungible tokens (NFT) and bolster creators at The Bass—a contemporary art museum in Miami—last April 7th. The fund is part of the firm’s new initiative called eToro.art, which aims to support NFT creators and brands.
According to eToro’s U.S. managing director Guy Hirsch, the new fund marked the beginning of a greater NFT strategy for the company, which will eventually offer a multitude of services to allow investors to participate in the emerging economy.
“Before, with Bitcoin and Ether, you had only the likes of Goldman Sachs or similar traditional financial players participating or looking at expanding into crypto,” Hirsch told CNBC.
He also noted that “NFTs are essentially making any and every potential brand a participant in this market.”
To further display their commitment to NFTs, eToro showcased its digital art collection, including well-known projects such as the Bored Ape Yacht Club, CryptoPunks and World of Women.Â
Moreover, eToro disclosed that it plans to commit $10 million to support emerging creators and brands in bringing their new NFT projects to market this year.
Hirsch added it is one of eToro’s plans to add capabilities that will give customers exposure to use cases beyond digital art. Digital art is just one use case for NFTs.
“Any brand can hone in on this and create some sort of an NFT that represents an ownership stake in part of the brand,” Hirsch added.
Currently, NFT investors typically use the floor price, or the minimum amount of money you can spend to buy an item from a collection. According to Hirsch, price discovery in digital art and knowing what to buy are still “big question marks”.
“It needs to be more sophisticated than that,” Hirsch said. “We see new services emerging that will be akin to the appraisal process of traditional art. Within a year or two we’ll have third-party services that will appraise individual pieces and give you an approximate price on what you’re about to buy or what you own in a way that would be agreed on by market participants.”
Hirch also pointed out how art has been a strong asset class for decades, but only for the ‘super’ rich. With that in mind, eToro assured that they are looking to bring both new artists and new investors together to help both build their wealth in this new way.
“When these artists create a collection or NFT drop, the price on those would be quite low… People would be able to participate, and if the community is strong and if the art is promising, it will appreciate in value, but the entry point would still be accessible to the everyday investor,” Hirsch concluded.
This month, credit card giant Visa Inc has also launched an NFT creator program which aims to bring small businesses into the digital economy. Selected creators will be able to participate in a one-year NFT immersion program. (Read more: Visa Launches NFT Creator Program)
Further, opening more opportunities for NFT creators, OpenSea, the biggest NFT marketplace, confirmed that it is set to welcome NFTs from the public blockchain platform Solana. (Read more: OpenSea Welcomes Solana NFTs)
Aside from eToro several other global companies have also ventured into NFTs, cryptocurrency and the Metaverse. (Read more:Â Global Companies Building in the Metaverse)
This article is published on BitPinas: Crypto Trading Platform eToro Releases $20 Million NFT Fund
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