Cryptocurrency exchange KuCoin, is offering retail investors the opportunity to get into the non-fungible token (NFT) game by investing in an exchange-traded fund (EFT), according to a press release. They boast of becoming the first centralized exchange to offer this feature. 

The ETFs are being offered in partnership with Fracton Protocol, a service dedicated to fractionalizing valuable NFTs into fungible Ethereum-based ERC-20 tokens, the press release said. 

The ERC-20 tokens contained in KuCoin’s NFT funds represent 1/1,000,000 ownership of the target BAYC collection, for example, in the hiBAYC token. The KuCoin NFT ETF Trading Zone will first list five NFT ETFs covering hiBAYC, hiPUNKS, hiSAND33, hiKODA and hiENS4 as underlying assets.

In the future, KuCoin aims to expand their offered NFT ETFs to feature more NFT collections. 

“We are very excited to become the first centralized crypto exchange to support NFT ETFs that allow users to conveniently invest and trade top NFTs directly with USDT,” KuCoin CEO, Johnny Lyu said. “In the future, KuCoin will keep exploring more NFT-related products for our users.” 

KuCoin currently offers spot trading, margin trading, P2P fiat trading, futures trading, staking and lending. Their 20 million users stretch across the globe in virtually every country and region. 

In May of this year, KuCoin raised $150 million in a Series B funding round led by Jump Crypto, for a valuation of $10 billion. Their goal at that time was to use the funds to continue to grow a plethora of their services. The announcement Friday marks a new service coming to life. 

Author: Tyler Irvin