KuCoin, a Seychelles-based cryptocurrency exchange, has introduced an exchange-traded fund (ETF). This ETF exposes investors to non-fungible tokens (NFTs) like the Bored Ape Yacht Membership (BAYC).
KuCoin enumerates an NFT ETF
Friday marked the inauguration of the KuCoin NFT ETF Trading Zone, according to an announcement by the company. This ETF was introduced through a collaboration with the Fracton Protocol, a provider of NFT infrastructure.
The KuCoin NFT ETF is denominated in USDT. The underlying asset of the ETF is the NFT property. The ETF features the most prominent NFTs on the market, such as BAYC, which is one of KuCoin’s five NFT ETFs.
This ETF will trade with the ticker symbol hiBAYC. In all likelihood, it will be an ERC-20 token indicating 1/1,000,000 ownership of the targeted BAYC NFT during the BAYC meta-swap of the Fracton Protocol.
The goal of the ETF is to increase liquidity. It provides the NFT using the USDT stablecoin instead of Ether (ETH). Therefore, it eliminates the risks and concerns associated with the management of NFT infrastructure solutions such as wallets, marketplaces, and smart contracts.
The hiBAYC NFT will not be a component of this fundraising offering. The funding may also accommodate CryptoPunks, which may trade under the ticker symbol hiPUNKS, Koda NFTs under the ticker symbol hiKODA, hiSAND33, and hiENS4.
On August 4, the hiPUNKs fundraising product will go live. The listings for hiKODA, hiSAND33, and hiENS4 may be introduced at a later date, per the change’s notification.
KuCoin’s NFT-related initiatives
This ETF is a significant milestone for KuCoin. It should help the change achieve its goal of accelerating the NFT market by lowering the funding threshold for one of the most valuable digital collectibles. It will allow the company to seek additional opportunities in the net 3.0 and crypto space.
KuCoin has taken numerous steps to advance the NFT industry. In April of this year, the exchange released Wonderland, a platform for launching NFTs. Windvane, a market for NFTs, was additionally launched by the trade. Windvane provides a variety of services, including a launchpad for NFTs, minting, and trading.
The CEO of the exchange, Johnny Lyu, reacted on the event, stating that KuCoin would continue to offer traders access to user-friendly products and enable them to participate in NFT investments. The CEO also stated that KuCoin was the first centralized cryptocurrency exchange to handle NFT ETFs, allowing users to speculate and trade major NFTs using the USDT stablecoin.