According to reports, the Seychelles-based crypto exchange, KuCoin, has issued an ETF (exchange-traded fund). This ETF differs from other types, usually tied to a cryptocurrency.
KuCoin’s ETF is linked to popular NFTs such as the BAYC (Bored Ape Yacht Club). According to the company’s announcement, the trading zone for its NFT ETF has gone live.
Additionally, the exchange launched the new investment product by partnering with Fracton Protocol, a provider of NFT infrastructure. Meanwhile, the latest NFT ETF from KuCoin is a Tether-dominated product.
KuCoin To Launch Five NFT-based ETFs
Also, KuCoin is launching other NFT ETFs apart from the NFT ETF linked to BAYC. The company said it is launching five NFT exchange-traded funds.
The BAYC-based ETF will trade under the title hiBAYC. Also, reports say the ETF is an ERC-20 token representing 1/1,000,000 of the actual BAYC in the Fracton Protocol.
The aim of the ETFs is to increase the rate of liquidity. It also allows customers to have exposure to NFT through stablecoin, USDT, and not Ethereum.
It also removes the concerns and risks surrounding the management of NFT elements such as smart contexts, NFT markets like OpenSea, and wallets. Apart from the hiBAYC, the company will also launch other ETFs.
They include CryptoPunks (hiPUNKS), hiSAND33, hiENS4, and Koda NFTs (hiKODA). However, only hiBAYC has been listed by KuCoin.
The company said it would list hiPUNKS ETF on the 4th of August. It will later communicate the launch date for the others (hiSAND33, hiENS4, and hiKODA).
KuCoin And The NFT Industry
Furthermore, the latest ETF is a major milestone in the company. KuCoin has been working to fully establish the market for NFTs by reducing the investment threshold of major digital collectibles.
Also, the firm has focused on improving the NFT industry by releasing Wonderland, an interactive NFT platform, in April. Additionally, the exchange released another NFT market, Windvane.
Windvane provides users with an NFT minting, launchpad, trading, and management services, among others. According to Johnny Lyu, the CEO of KuCoin, the firm will keep providing friendly products for its investors.
These products would allow them to take part in NFT investments. Also, Lyu said KuCoin remains the first centralized exchange to have support for NFT ETFs. These ETFs allow investors to trade leading NFTs using USDT.
Meanwhile, the KuCoin exchange is not the first firm to explore the usage of NFT ETFs. Let December, a fintech company and investment adviser, Defiance, issued the first NFT-based ETF on the NYSE (New York Stock Exchange Arca).
The ETF helps to track the index of firms that operate or wish to operate in the metaverse and NFT industries.