The tech-savvy millennials and the youth from generation “Z” have been exploring the emerging sectors from the crypto street and beyond. NFTs and digital art have been garnering the interests of the savvy through social media platforms and by word of mouth. The perceptions of enthusiasts have been ranging from collectibles to digital assets, to a matter of pride.
That said, the NFTs are leaving a lasting impression, such that these cannot be ignored. It is now a known fact to the masses that NFTs have been paving a future for artists, creators, developers, and collectors. The ascending sector is set to see another incoming sector post the metaverse, which is an NFT index fund.
Are NFTs For The Future And Beyond?
The sector of Non-fungible tokens has faced the wrath of the supercycle, alongside primary cryptocurrencies. The market cap of the NFT sector is currently hovering at about $20,480,057.09, which is presently up by 17.94%. The sales volume for 24-hours is down by 7.84% at $101,327.67. The total sales registered since the previous day are down by 5.20% at the count of 711.
Matt Hougan the CIO of Bitwise Invest cites the launch of the Bitwise blue-chip NFT index fund. Which is the world’s first NFT index fund. The fund holds the ten most valuable NFT collections, some of which are: Crypto Punks, Bored Apes, Fidenza, amongst others. The index selects and weighs NFTs based on market cap, which is using the floor prices. The index rebalances the weightage quarterly.
It hosts eligibility criteria that filter NFTs based on liquidity, music rights, virtual land, game items, etc. The focus of the initiative is on arts and collectibles. With the goal to own the iconic blue-chips of today and those that emerge in the future. The aim of the index fund is to make owning the blue-chip NFTs simpler.
Matt Hougan furter cites that, although NFTs are bound with risks, with the volatility of the challenging market. NFTs are a breakthrough and rapidly becoming prized artifacts of the new digital era. Over the last decade, crypto has created over $2 trillion in wealth for a digitally native generation. With the evolving digital world, he believes NFTs to be on the right side of the future.
Collectively, Non-fungible tokens and digital art have been making their presence felt at an astonishing rate. The industry has been witnessing numerous celebrities and influential personalities getting their own NFTs. Metaverse has been one of the major catalysts in fuelling the prominence of NFTs. Which now have another distinct destination to move forward.