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KuCoin Hits a New Achievement by Becoming the First Exchange with NFT ETFs

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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 allow regular people access to high-profile NFTs.

So far, NFT collections such as Bored Ape Yacht Club have been too expensive for most retail investors, but with NFT ETFs, things will change for KuCoin’s customers.

NFT ETFs are now available

KuCoin is capable of offering NFT ETFs thanks to its partnership with Fracton Protocol. This is a service that aims to fractionize NFTs and turn them into fungible ERC-20 tokens. Of course, with the 8 months of the bear market pushing the prices in the crypto industry down, the NFT sector felt its consequences as well, and even the biggest and most resilient 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 the Bored Ape tokens holding the value of $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 collection. This makes them a lot more accessible.

Initially, KuCoin’s NFT ETF sector will offer 5 NFT ETFs. That will include hiBAYC, hiPUNKS, hiKODA, hiSAND33, and hiENS4. However, in time, KuCoin plans to expand this list further and add more popular collections into 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 fractionalized NFTs

The exchange’s CEO, Johnny Lyu, commented on the new development noting that the trading platform is very excited to become the first centralized crypto exchange to support NFT ETFs. This will bring convenience for users who have always wanted to invest in top NFTs but could never afford them. Now, they will be able to trade them with USDT directly. Lyu also confirmed that KuCoin will continue to explore additional NFT-related products for the benefit of its users, and tokenize all the most sought-after assets.

KuCoin already offers a variety 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 provides these services to more than 20 million users located all over the world, in 207 different countries and regions of the world.

With the new offering, the number of users may increase even more, as the NFT sector attracted many new individual collectors to the crypto industry after it blew up in early 2021.

To learn more visit our best NFTs projects guide.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

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