KuCoin, a cryptocurrency exchange headquartered in Seychelles, has launched an exchange-traded fund (ETF) associated with major non-fungible token (NFT) assets such as the Bored Ape Yacht Club (BAYC).
KuCoin’s NFTETF Trading Zone went live on Friday. publication.. The new investment product will be launched in collaboration with NFT infrastructure provider Fracton Protocol.
The KuCoin NFT ETF is a tether (USDT) predominant product that marks certain underlying NFT assets such as the Bored ApeYacht Club. BYAC is one of the five NFTETFs launched by KuCoin. The asset traded under the symbol hiBAYC is an ERC-20 token that represents 1 / 1,000,000 ownership of the target BAYC in the BAYC metaswap of the Flactone Protocol.
ETFs aim to increase liquidity by allowing exposure to NFTs via USDT stablecoins instead of Ethereum (ETH). It also eliminates risks and concerns regarding the management of NFT infrastructure elements such as wallets, smart contracts and marketplaces such as OpenSea.
In addition to hiBAYC, investments include CryptoPunks (hiPUNKS), Koda NFT (hiKODA), hiSAND33, hiENS4.From hiBAYC on Friday, investment products schedule According to the exchange, a list of hiKODA, hiSAND33 and hiENS4 will be announced at a later date.
ETFs represent an important milestone in KuCoin’s efforts to accelerate the establishment of the NFT market by lowering investment thresholds for key digital collections.
The exchange is focused on developing the NFT sector and launched the interactive NFT launch platform Wonderland in April 2022. KuCoin has also rolled out another NFT marketplace, Windvane, which offers NFT lunchpads, mint, trade, management and other services.
KuCoin will continue to provide investors with user-friendly products, making it easier for investors to participate in NFT investments, said KuCoin CEO Johnny Ryo. According to Lyu, KuCoin is the first centralized crypto exchange to support NFTETFs, allowing users to invest and trade top NFTs directly in USDT.
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However, KuCoin was not the first to investigate NFTETF. In December 2021, Defiance, a registered investment adviser and fintech company, launched the world’s first NFT-focused ETF on the New York Stock Exchange Arca. ETFs track the index of companies that do or plan to do business in the NFT and Metaverse sectors.