In an update earlier today, global tech conglomerate Meta shared news of its latest moves surrounding digital collectibles. From September 29th, subsidiaries Facebook and Instagram will now allow users to link their virtual wallets with their accounts and also share non-fungible tokens. Users Across 100 Countries Can Access New Meta Feature Everyone on @instagram and @facebook can now share their digital collectibles in the US, and on Instagram in the previously announced 100+ countries,” Meta announced in a tweet. https://twitter.com/MetaNewsroom/status/1575486040349245446?s=20&t=TpIDHfYcRCtVRMNrwYhWiA…
This new service should help investors access non-fungible tokens and boost the assets’ widespread availability. The Seychelles-based exchange partnered with NFT infrastructure provider Fracton Protocol to ensure the project’s feasibility.
A USDT-Dominated ETF
The KuCoin NFT ETF is using Tether (USDT) as the crypto reference for its trading operations, including five different funds. The most prominent name in the batch is BAYC, which the ETF will trade under the hiBAYC symbol. This ERC-20 token will represent 1/1,000,000 ownership of the target BAYC in the BAYC meta-swap of Fracton Protocol.
The other NFTs in the investment fund include CryptoPunks (hiPUNKS), Koda NFTs (hiKODA), hiSAND33, and hiENS4. However, only hiBAYC and hiPUNKS are listed at the moment. KuCoin will reveal the listings for the remaining three NFTs at a later date.
The ETF seeks to enhance liquidity and increase exposure for NFTs via USDT. The stablecoin should reduce volatility risk and improve NFT infrastructure management, including wallets, smart contracts, and marketplaces like OpenSea.
Additionally, the fund will establish a lower investment entry level for digital collectibles, making NFTs more accessible to investors worldwide.
KuCoin Increases Focus on NFTs
KuCoin has been foraying the NFT niche for quite some time. In April this year, the exchange launched Wonderland, an interactive NFT platform. Moreover, it released Windvane, an NFT marketplace incorporating an NFT launchpad with mint, trade, management, and other available options. These operations should help rebuild the investors’ trust in a crypto exchange with a long history of hacks.
Johnny Lyu, the KuCoin CEO, praised the first NFT ETF allowing people to invest in NFTs via USDT:
KuCoin will continue to offer user-friendly products for investors, allowing them to easily participate in NFT investments.
The exchange is following in the footsteps of fintech firm Defiance, the first company to launch an NFT-focused ETF. The fund has been operating since December 2021 on New York Stock Exchange Arca. It tracks companies operating in NFTs and the Metaverse.