KuCoin becomes the first CEX to launch NFT ETF Trading Zone

On July 29, the leading crypto exchange platform KuCoin announced the lunch of its NFT ETF (Exchange-traded fund) Trading Zone. The new offering aims to improve the NFTs’ liquidity and minimize the investment threshold of blue-chip NFTs.

With the launch, KuCoin became the first centralized crypto exchange platform to support such an instrument. The exchange is also the first market player to launch a USDT-dominated ETF product that marks specific underlying blue-chip NFT assets.

The primary goals of KuCoin NFT ETF Trading Zone 

The new Trading Zone will open up top NFTs to a wider range of investors looking to purchase blue-chip NFTs. The KuCoin NFT ETF Trading Zone, according to the official statement, will first feature 5 NFT ETFs covering the underlying assets of hiBAYC, hiPUNKS, hiSAND33, hiKODA, and hiENS4 in collaboration with Fracton Protocol.

HiBAYC is an ERC-20 token that, in the BAYC Meta-Swap of the Fracton Protocol, represents 1/1,000,000 ownership of the target BAYC. The exchange platform said that it would introduce more NFT ETFs in collaboration with the Fracton Protocol’s corporate division in the near future.

In May, as TheCoinRise reported, KuCoin secured $150 million in a pre-series B funding round that helped it to expand its operations and product offerings. 

Commenting on the new product launch, the CEO of the company, Johnny Lyu, said that the exchange is maintaining its “state of penetration” in the NFT space.

“KuCoin will continue to offer user-friendly products for investors, allowing them to easily participate in NFT investments. [The team is] very excited to become the first centralized crypto exchange for supporting NFT ETFs that allow users to conveniently invest and trade top NFTs directly with USDT,” he added.

The exchange gains significant attraction from the introduction of the KuCoin NFT ETF Trading Zone in its attempts to accelerate the development of a mature NFT market. Notably, in June, KuCoin launched a decentralized wallet to serve Web3 uses, aligning with its goal to increase Web3 adoption around the world.