The NFT ETF Trading Zone was recently launched by KuCoin (1), a worldwide cryptocurrency exchange, to improve the liquidity of NFT assets and lower the investment barrier, enabling blue-chip NFTs for up to 20 million users and more.
KuCoin collaborated with Fracton Protocol (2) for this project, which is getting ready to launch five NFT ETFs covering the underlying assets of hiBAYC, hiPUNKS, hiSAND33, hiENS5, and hiKODA for their community (3). With the debut of this initiative, KuCoin became the first centralized cryptocurrency exchange and the first company to introduce ETF products that the USDT heavily dominated. With the help of this new project, a growing number of NFTs and investors will be able to access these NFTs with a major difference and heat the digital market race.
As a 1/1,000,000 ownership stake in the BAYC meta-swap Fracton Protocol (4), BAYC is an ERC-20 token. Along with launching further NFT ETFs in collaboration with Fracton Protocol, KuCoin will promote BAYC by enabling users to own a proportionate share of the NFTs.
The KuCoin NFT ETF Trading Zone has undoubtedly aided in developing a mature NFT market by lowering the investment barrier for high-potential NFTs in the cryptocurrency sector. Additionally, it promotes direct purchases of NFTs using USDT (5) rather than ETH (6) by claiming to offer top-tier liquidity and an amazing trading experience. Also, managing the full NFT infrastructure, including digital wallets, smart contracts, and preferably OpenSea, is unaffected by this.
KuCoin demonstrated its long-standing commitment to the NFT market with the debut of Wonderland (7), a unique NFT launch platform for digital currency and traditional games. With a centralized interface for purchasing, investing, and managing their in-game NFTs and assets, it offers a seamless experience. Another NFT marketplace, Windvane (8), offers an NFT launchpad, NFT minting, trading, management, and several other functions.
Understanding the KuCoin NFT ETF Trading Zone initiative
First off, it is uncommon to find blue-chip NFTs in renowned collections. Most blue-chip NFTs are acquired by the BAYC and CryptoPunks projects, but Azuki, Meebits, Doodles, and Clone X all have a wide range of pricey and endearing characters to choose from (9).
Since NFTs are sold on a 1-for-1 basis, few traders have been able to purchase blue-chip NFTs. Additionally, most of these NFTs are not offered as fractionalized NFTs, allowing users to purchase portions of specific NFTs. This was the central principle behind the ground-breaking KuCoin NFT ETF Trading Zone.
When an investor buys an exchange-traded fund, there is typically no ownership associated with the transaction because exchange-traded funds are trading instruments created based on the underlying pool of assets. However, investors can use trading data to make precise decisions about the liquidity of the underlying asset. By allowing NFT traders to trade their NFT ETFs of the top and leading blue-chip NFTs, KuCoin is attempting to capitalize on the comparable notion.
The KuCoin project is a significant step in the direction of the creation of a centralized counterpart, and it has undoubtedly sparked ideas for centralized authorities once more to mimic the highly anticipated metaverse or web3-related technology.
The centralized NFT ETF Trading Zone, which enables users to join, invest in, and even trade with a direct transaction from USDT, is another feature that KuCoin is allowing investment players to use to maintain a penetration rate in the NFT business.
An overview of KuCoin
KuCoin is one of the top 5 exchanges in the advanced and incredibly inventive cryptocurrency market. Users of this platform are introduced to various trading alternatives, such as Fiat, Spot (10), P2P, and Future. Even these aspects have subcategories based on cryptocurrencies and technological improvements. Additionally, this platform actively supports web 3.0 and the metaverse.
The effective pricing, which offers top-tier blue-chip NFTs for a reduced investment, distinguishes KuCoin the most. The primary quality that distinguishes signals is their endeavor to maintain a minimal infrastructure. The liquidity that KuCoin provides at such a price is what also attracts significant investors in addition to users. Spot trading is comparable to this.
Live market data, including order books with potent cryptocurrencies like the LUNA and LUNC prices, is also available on the KuCoin exchange (11). Even the installation of bots into the system has increased its reach. These bots eventually produce a profitable investment because they run entirely on autopilot, enabling them to succeed and attracting attention from the cryptocurrency market. They also perform trading through these bots.
What is an NFT ETF?
NFT ETFs combine the fundamental components of the cryptocurrency and investing industries, which makes it simpler to examine each separately.
An NFT is a token that tracks a digital asset's ownership and is kept on the same blockchain network that keeps track of cryptocurrency transactions. An exchange-traded fund, or ETF, is a type of investment that contains a collection of assets. ETFs are traded on stock exchanges, and investors can buy and sell shares like stocks.
Combining both features, the NFT ETF focuses on the businesses engaged in NFTs and allocates funds for each holding, allocating, for example, 8% of its total holdings to the largest NFT stock, 7.5% to the second-largest, and so forth.
Now that NFT exchanges, other trading platforms, and the blockchain networks optimized for producing NFTs have been released, businesses will be committed to using NFTs as a significant example of holdings. An NFT ETF is a financial instrument that updates and follows the index of stocks linked to NFT.
Users or investors can purchase shares using stock brokers or platforms. The NFT ETF is also vital to creating a broad portfolio because it offers widespread exposure to NFT-related businesses. The ability of NFTs to change the world is demonstrated by the dramatic increase in recent years in their sales. The possibility of profit certainly exists in this market.