The approval of the first spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) could herald a resurgence for nonfungible tokens (NFTs), according to Web3 experts. This landmark decision is seen as a significant boost for the entire crypto ecosystem, particularly for the NFT sector.
Bill Qian, chairman of Cypher Capital, suggests that this approval could indirectly benefit NFTs, often seen as “alternative assets.” Qian emphasizes that the growing acceptance of Bitcoin, spurred by the ETFs, is likely to spill over to NFTs, increasing investor interest and confidence in digital assets.
Oscar Franklin Tan, CFO of Atlas Development, echoes this sentiment. He points out that the spot Bitcoin ETF approvals validate the crypto market, especially for retail investors. Tan foresees a similar positive trajectory for Ether ETFs, which could reignite interest in Ethereum-based NFTs, highlighting the potential for a comeback of established NFTs like Bored Ape Yacht Club and CryptoPunks.
Sergey Sheleg of Nicegram and Dirk Lueth of Upland also share optimistic views. They believe the integration of traditional financial structures like ETFs with crypto is a positive development for the NFT market. This integration is expected to enhance confidence, reduce perceived risks, and increase institutional involvement in NFTs. They anticipate improvements in market liquidity, reduced price volatility, better infrastructure, and more regulatory clarity as key factors driving this growth.
Overall, the crypto industry, particularly the NFT sector, appears poised for a significant boost following the SEC’s approval of Bitcoin ETFs. This development not only validates the crypto industry but also paves the way for broader adoption and integration into mainstream finance.