While some collectors have killed NFTs, Canary Capital believes that asset classes can find fans on Wall Street.
In a recent interview with Decryption, Canary Capital CEO Steven McClurg suggests that the NFT market will experience revival soon, potentially tracking investors’ interest in digital art collectibles with chatter about funds tracking NFT prices.
While ETFs covered in NFTs may not have been conceived a few years ago, McClurg said as federal regulators embrace new crypto-friendly regulations and “more fluid” NFTs are on the market, the likelihood that such funds will be available to US investors. Decryption.
“Today’s SEC is more open to proactively managed products and creates more liquid ‘digital art’,” says McClurg. “Now that the major barrier has been removed, I thought it was an opportunity to try an ETF wrapped in NFT.”
Executive comments come just 10 days after Canary capital is submitted Pudgy Penguins and Penguins etf In the US, there is a movement to split Crypto Twitter.
Some members of the Crypto Community laughed at ETF filing and announced the announcement of Canary Capital as nothing more than fluff and fanfare designed to pump the Pudgy Penguins collection.
Experts said before Decryption Putting NFTs in ETF wrappers can cause structural and technical issues, and the relatively illiquidity of NFTS also brings market production problems.
However, digital art advocates hope that NFT-based ETFs can stimulate the tough NFT market.
According to the 2024 industry for Web3 data providers, the NFT market hit its lowest level in three years last year, with both sales and trading volume falling nearly 20% compared to the previous year. Report. Meanwhile, pAccording to Coingecko, Opular NFT collections such as Pudgy Penguins, Crypto Punks and Milady Maker have lost 30%, 7% and 17% of their value in the past year, respectively. data.
Despite its market slump, McClurg is optimistic digital art is on the path to wider adoption in the near future.
“We see a long-term trend in digital art and digital rights to these works, as the SEC has determined that digital art and collectibles are not securities,” says McClurg. “Major barriers have been removed.”
Edited by James Rubin
