Institutional investors have been flooding the Bitcoin[1] market, with their price gains over the past year providing ample evidence of the same. In fact, according to many, it was this flood of institutional entry that allowed the world’s largest cryptocurrency to go on a bull run and climb to its latest ATH on the charts. However, Bitcoin isn’t the only popular deal in the market. Thanks to the fact that the market is slowly becoming mainstream, institutions are investing in other forms too.
Bitcoin’s popularity and success have reaped rewards for the rest of the market, including the cryptocurrency industry’s alts, with Ethereum being one of them. Ergo, investment in Bitcoin has seeped into Ethereum as well. However, institutional investment in Ethereum is not the only way by which it as a platform stands to benefit. The emergence of Non-fungible tokens is a case in point here.
In order to understand this, it is also crucial to acknowledge the world of Non-fungible Tokens, commonly referred to as NFTs. A recent report by LongHash highlighted that institutions are exploring new business models based on blockchain and it is in this context that Ethereum-based Non-Fungible Tokens and digital collectibles are coming in.
According to the report[2], since the 1970s, a variety of art funds have become available, funds that give investors access to the growth that can come from owning one-of-a-kind assets such as paintings. Such art funds’ market may be transforming now to include NFTs and this, to a significant degree, further expands the range Ethereum as a platform is able to operate on and take advantage of.
The report went on to highlight that,
“It’s not just individual art collectors who are investing in NFTs. On February 12, 2021, Coatue Management, a well-known hedge
