NFT’s Could Just Be The Next Big Thing In The Crypto Space
One of the things that makes Cryptocurrency so different from what came before it is the incredible dynamism of digital assets themselves.
That was on full display in the realm of NFTs this week.
First, one of the premier digital asset managers Bitwise launched a new index fund for accredited investors that tracks non-fungible tokens.
Yes, you heard that right, an index fund for NFTs. The Bitwise Blue-Chip NFT Index Fund will purchase and hold NFTs from the top 10 NFT collections based on market cap derived by floor prices.
The first edition of the fund will purchase NFTs from collections including CryptoPunks, Bored Ape Yacht Club, Mutant Ape Yacht Club, Autoglyphs, Fidenza, VeeFriends, CyberKongz Genesis, Cool Cats, Meebits, and Chromie Squiggle. The fund will rebalance quarterly.
It goes without saying that this sort of index fund could be a game-changer for bringing more passive investors into the NFT markets. That could provide additional liquidity to the sector.
Speaking of liquidity, that wasn’t the only upgrade to the NFT experience that came this week.
Nexo, a popular crypto-currency exchange platform has launched the first ever NFT Lending Desk.
Owners of blue-chip NFTs (starting with CryptoPunks and Bored Apes) can borrow up to 20% of the value of their NFT without having to sell them.
Initially, this will only be available for NFTs exceeding $500,000 in value but it should expand in the future.
“The thing that makes this industry great is holders with long-term horizons. We’re thrilled to make it even more economically rational to make a bet on the long-lasting value of your NFTs’ The company said in a blog post obtained by flipmemes.