The NFT market peaked in 2021 but has plummeted in recent years. However, according to Steven McClurg, CEO of Canary Capital, NFTs may soon revive and even step into Wall Street with a new ETF.
NFT-Backed ETF: A Once Unimaginable Vision, Now a Reality?
In an interview with Decrypt, McClurg stated:
🔹 Previously, an ETF based on #NFT was unimaginable, but now everything has changed.
🔹 The SEC is currently more open to crypto-related investment products, especially those with higher liquidity.
🔹 NFTs have become more liquid, opening opportunities to turn them into mainstream investment assets.
For this reason, Canary Capital has filed to launch the Pudgy Penguins & PENGU ETF in the U.S. – a controversial move on Crypto Twitter.
Can NFT ETFs Save the NFT Market?
Data from DappRadar shows the NFT market is hitting bottom after 3 years:
🔻 Sales and trading volume have decreased by nearly 20% compared to last year.
🔻 The famous Pudgy Penguins collection lost 30% of its value, CryptoPunks fell 7%, Milady Maker dropped 17%.
However, McClurg believes that:
🔹 NFTs are no longer seen as securities, paving the way for mainstream investment products.
🔹 Digital ownership will become a long-term trend as more investors understand the value of digital art.
Do NFTs Have a Chance on Wall Street?
While the idea of an NFT #ETF seems appealing, experts remain skeptical:
❌ NFTs have low liquidity, making market creation difficult.
❌ The traditional ETF structure is not optimized for NFTs and may face technical issues.
❌ Crypto Twitter mocks that this is just a stunt to 'pump' Pudgy Penguins.
But if successful, this could be the breakthrough that helps NFTs revive, bringing digital assets into traditional investment portfolios on Wall Street.
💡 Conclusion: #NFTETF could be a major thrust or just a passing trend – but clearly, NFTs are not 'dead' as many believe.