After Spot Bitcoin ETF Greenlight, NFTs Anticipate a Resurgence

With the recent approval of the first spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC), Web3 experts argue that this development could breathe new life into the diminishing sub-crypto ecosystem of nonfungible tokens (NFTs). Bill Qian, chairman of the crypto investment firm Cypher Capital, suggests that so-called ‘alternative assets’ like NFTs could experience an indirect benefit from the approval of spot Bitcoin ETFs in the United States. Qian predicts that as mainstream finance warms up to Bitcoin (BTC), it will likely spill over to increase investor interest in and curiosity about NFTs.

After Spot Bitcoin ETF Greenlight, NFTs Anticipate a Resurgence

According to Qian, the growing acceptance of Bitcoin could lead to a broader embrace of NFTs as a viable investment alongside BTC. Oscar Franklin Tan, the CFO of Atlas Development and a key contributor to the NFT platform Enjin, believes that the approval of spot Bitcoin ETFs will have a positive impact on NFTs. Tan points out that Bitcoin already has NFTs, referencing the Ordinals protocol, which has seen over $800 million in sales volume in the last 30 days.

Tan considers the ETF approvals as crucial validation, indicating that the largest digital asset, Bitcoin, is now SEC-approved for retail investors. He emphasizes that the approval, backed by big names such as BlackRock, Fidelity, and Coinbase, speaks for itself without needing further explanation. Tan also speculates that after spot Bitcoin ETFs, Ether (ETH) ETFs could be the next in line, potentially renewing interest in Ethereum-based NFTs. He suggests that this shift in focus might bring attention back to original Ethereum NFTs like Bored Ape Yacht Club and CryptoPunks, which have a longer history and more established communities than Bitcoin NFTs.