Seychelles-headquartered cryptocurrency exchange KuCoin has launched an exchange-traded fund (ETF) linked to major nonfungible token (NFT) assets like Bosen Ape Yacht Club (BAYC).
KuCoin’s NFT ETF Trading Zone is live, the company said declare. The new investment product was launched in collaboration with NFT infrastructure provider Fracton Protocol.
KuCoin NFT ETF is the ticker or stock symbol of Tether.USD) dominated products that mark basic NFT assets such as Bosen Ape Yacht Club. BYAC is one of five NFT ETFs launched by KuCoin. Traded under the symbol hiBAYC, the asset is an ERC-20 token representing 1/1,000,000 of the BAYC target ownership in the BAYC meta-swap of the Fracton Protocol.
The ETF aims to increase liquidity as it allows exposure to NFTs through stablecoin USDT instead of Ether (ETH). It also removes the risks and concerns of managing NFT infrastructure elements like wallets, smart contracts and marketplaces like OpenSea.
In addition to hiBAYC, these investments include CryptoPunks (hiPUNKS), Koda NFTs (hiKODA), hiSAND33 and hiENS4. Starting with hiBAYC there, an investment product scheduled to list hiPUNKS on August 4. Listings for hiKODA, hiSAND33 and hiENS4 will be announced later, the exchange said.
The ETF marks an important milestone in KuCoin’s efforts to accelerate the establishment of the NFT market by lowering the investment threshold of leading digital collectibles.
The exchange has focused on developing the NFT sector, launching the interactive NFT launch platform Wonderland in April 2022. KuCoin also rolled out WindvaneOther NFT markets provide NFT launchpads, mints, trading, management and other services.
“KuCoin will continue to offer a user-friendly product for investors, allowing them to easily participate in NFT investments,” said KuCoin CEO Johnny Lyu. According to Lyu, KuCoin is the first centralized crypto exchange that supports NFT ETFs that allow users to invest and trade top NFTs directly with USDT.
related: US federal agencies issue legal advisories on NFT investments
KuCoin is not the first to explore NFT ETFs, though. As of December 2021, investment advisor and fintech firm Defiance has signed up launched the world’s first NFT focused ETF on the New York Stock Exchange Arca. The ETF tracks an index of companies operating or planning to operate in the NFT and Metaverse sectors.
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