eToro, a trading platform, has announced a $20 million fund to buy NFTs and support inventors. The debut was unveiled Thursday at The Bass, a contemporary art museum in Miami.
The fund was established by the trading platform as part of a new project dubbed eToro.art, which aims to assist NFT producers and brands.
The new fund, according to Guy Hirsch, eToro’s US managing director, is the start of a larger NFT strategy for the company, which will eventually offer a variety of services to allow investors to engage in the growing economy.
Nonfungible tokens, or NFTs, are digital assets that reflect real-world goods that cannot be duplicated, such as art, music, real estate, and so on.
“With bitcoin and ether before, only Goldman Sachs and other traditional financial players were engaging or looking to expand into crypto,” Hirsch said to CNBC. “NFTs effectively turn any and every potential brand into a player in this market.”
eToro displayed its digital art collection as part of its new initiative, which includes well-known initiatives such as the Bored Ape Yacht Club, CryptoPunks, and World of Women. eToro also wants to invest $10 million this year to help budding creators and companies bring their innovative NFT initiatives to market.
NFTs can be used for a variety of applications, including digital art. eToro plans to introduce capabilities that will expose users to use cases other than digital art, according to Hirsch.
Big businesses from every industry, including Coca-Cola, McDonald’s, Nike, Gucci, the National Football League, and others, have included NFTs into their marketing activities in the last few months.
Hirsch continued, “Any business can hone in on this and construct some form of NFT that symbolizes an ownership share in part of the brand.”
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