The approval of the first spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) is seen as a potential catalyst for revitalizing the Non-fungible tokens (NFTs) sector within the crypto ecosystem, according to Web3 experts. Bill Qian, chairman of crypto investment firm Cypher Capital, suggests that NFTs, as “alternative assets,” could indirectly benefit from the U.S. approval of these Bitcoin ETFs. Qian views the ETFs’ approval as a significant step towards the mainstream financial world embracing Bitcoin, which could positively impact NFTs.
Qian elaborates that the increasing understanding and acceptance of Bitcoin might extend to NFTs, enhancing investor interest and acceptance of NFTs as legitimate investments alongside Bitcoin. Oscar Franklin Tan, CFO of Atlas Development contributing to the NFT platform Enjin, also sees the Bitcoin ETF approvals as a boost for NFTs. He highlights the recent success of the Ordinals protocol on Bitcoin, which has generated significant sales volume, as evidence of Bitcoin’s potential in the NFT space.
Tan told Cointelegraph that the ETF approvals serve as a crucial validation of Bitcoin for retail investors, simplifying the investment process with the involvement of major financial players like BlackRock, Fidelity, and Coinbase. He anticipates that following Bitcoin ETFs, Ether ETFs might be next, potentially reigniting interest in Ethereum-based NFTs, particularly in well-established collections like Bored Ape Yacht Club and CryptoPunks.
Sergey Sheleg, Chief Product Officer of Web3 social platform Nicegram, views the merging of traditional financial structures like ETFs with crypto as a positive development for the NFT market, potentially boosting confidence and institutional involvement. He notes that rapidly evolving regulations around digital assets will support NFTs, especially in practical applications such as ticketing, fractional art ownership, and identity management.
Dirk Lueth, co-founder of NFT gaming platform Upland, believes that the ETFs will lower the perceived risk and complexity of entering the crypto market, thereby encouraging more activity in the NFT space. He anticipates growth in market liquidity, reduced price volatility, improved infrastructure, and clearer regulations. Lueth also sees the approvals as a sign of the crypto industry’s enduring presence and future in the U.S. market.
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