August 02, 2022
By Murtuza Merchant
In a bid to provide its customers fractional ownership in well-known digital tokens like the Bored Ape Yacht Club, cryptocurrency exchange KuCoin has announced the launch of NFT exchange-traded funds (ETFs).
The offering is aimed at improving the liquidity of NFT assets and lowering the investment threshold of blue-chip NFTs for its users, according to the exchange.
In partnership with Fracton Protocol, a service dedicated to fractionalizing valuable NFTs into fungible Ethereum-based ERC-20 tokens, five NFT ETFs will be listed initially, including hiBAYC, hiPUNKS, hiSAND33, hiKODA, and hiENS4 as underlying assets.
The ERC-20 tokens represent 1/1,000,000 ownership of the NFT collection
An example of a hiBAYC coin representing 1/1,000,000 ownership of the BAYC collection is one of the ERC-20 tokens that are part of KuCoin’s NFT funds.
KuCoin stated that by decreasing the investment threshold of high-potential and top NFTs in the crypto industry, the launch of the KuCoin NFT ETF aids the exchange in its efforts to accelerate the development of a mature NFT market.
NFT purchases through USDT
It added that additionally, it offers a superior trading experience with top-notch liquidity, a better method to invest in leading NFTs through direct purchases using USDT rather than ETH, and the freedom from handling NFT infrastructure elements like OpenSea, wallets, and smart contracts.
“As a trading platform that is maintaining its rate of penetration in the NFT sector, KuCoin will continue to offer user-friendly products for investors, allowing them to easily participate in NFT investments. We are very excited to become the first centralized crypto exchange to support NFT ETFs that allow users to conveniently invest and trade top NFTs directly with USDT. In the future, KuCoin will keep exploring more NFT-related products for our users.” Johnny Lyu, CEO of KuCoin said.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.
The point of view of your article has taught me a lot, and I already know how to improve the paper on gate.oi, thank you. https://www.gate.io/pt-br/signup/XwNAU
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me? https://www.binance.com/el/join?ref=V2H9AFPY