The recent approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) has sparked discussions among Web3 professionals about its potential impact on the struggling nonfungible token (NFT) ecosystem.
According to Bill Qian, the chairman of crypto investment firm Cypher Capital, the approval of spot Bitcoin (BTC) ETFs in the US can indirectly benefit perceived “alternative assets” like NFTs. Qian believes that as mainstream finance becomes more accepting of BTC, it will also have a positive effect on NFTs. He suggests that as investors gain a better understanding and comfort with digital assets, they may also show a broader interest in NFTs as a viable investment alongside BTC.
Oscar Franklin Tan, the chief financial officer of Atlas Development, a major contributor to the NFT platform Enjin, shares a similar sentiment. Tan believes that the approval of spot Bitcoin ETFs will boost the NFT market. He points out that Bitcoin already has NFTs, such as the Ordinals protocol, which has generated over $800 million in sales volume in the last 30 days. Tan sees the ETF approvals as crucial validation, indicating that the SEC has approved the largest digital asset for retail investors.
Tan also speculates that Ether (ETH) ETFs could be the next to receive approval, which would bring renewed interest in Ethereum-based NFTs. He mentions popular Ethereum NFTs like Bored Ape Yacht Club and CryptoPunks, which have a longer history and more established communities compared to Bitcoin NFTs.
Sergey Sheleg, the chief product officer of Web3 social platform Nicegram, sees the integration of traditional financial structures like ETFs with crypto as a positive signal for the NFT market. He believes that this could increase confidence and encourage institutional involvement in the NFT space. Sheleg emphasizes that regulations surrounding digital assets are evolving rapidly, which will benefit NFTs beyond the initial hype, especially in areas like ticketing, fractional art ownership, and identity management.
Meanwhile, Dirk Lueth, the co-founder of NFT gaming platform Upland, believes that the approval of ETFs will reduce the perceived risk and complexity of entering the crypto market. This, in turn, will make investors more comfortable engaging in NFT purchases. Lueth predicts that as market liquidity improves, price volatility decreases, infrastructure strengthens, and regulatory clarity increases, the NFT space will continue to grow. He also sees the ETF approvals as a way to raise awareness and confirm the long-term future of the crypto industry in the US.
In summary, the approval of spot Bitcoin ETFs by the SEC has generated optimism among Web3 professionals, who believe that it can have a positive impact on the NFT ecosystem. They foresee increased investor interest and confidence in NFTs, as well as potential growth in Ethereum-based NFTs. The integration of traditional financial structures with crypto is seen as a validation and a catalyst for institutional involvement. The evolving regulations surrounding digital assets are expected to further aid the cause of NFTs and expand their use cases. Overall, the ETF approvals are seen as a significant step towards establishing the crypto industry’s future in the US.