eToro to Make an Entry In the Blue-Chip NFT Space With $20M Fund

Key Insights:

• eToro has launched a $20 million fund to purchase blue-chip NFTs.
• The fund will be deployed through the company’s new ‘eToro.art’ platform.
• The trading firm says it will be ‘one of the leading NFT collectors globally’ after the fund’s launch.

The Israeli social trading and multi-asset brokerage company eToro, is getting into the non-fungible token (NFT) game with a $20 million fund launch.

Blue-chip NFT Craze

A decade ago, the idea of million-dollar JPEGs would be hilarious. Still, now everyone wants an animated monkey NFT that could make them a millionaire. That’s how blue-chip NFTs have carved a niche for themselves.

In the traditional finance market, a ‘blue chip’ refers to a company that’s considered a reliable investment. A few NFTs that have skyrocketed in price, like Cryptopunks or BAYC, can be called blue-chip NFTs. Market watchers have started calling these projects’ blue-chip NFTs’ to believe they will retain their high valuations for a long time to come.

With the NFT fever rising, every collector aims to find a project that could be a blue-chip NFT. However, it isn’t easy to find the right project early. Intending to purchase blue-chip NFTs and support emerging projects in the space, eToro announced the launch of its $20 million fund on Thursday.

eToro’s Entry in NFTs

According to a press release by eToro, the fund allocated will be deployed through the company’s newly launched ‘eToro.art’ platform. The platform aims to bring the ‘fun and community’ of the NFT industry to its 27 million users.

Furthermore, eToro claims that it will be ‘one of the leading NFT collectors in the world’ after its funds are fully deployed. The eToro.art platform has a collection that already includes NFTs from projects like Bored Ape Yacht Club, CryptoPunks and World of Women, and others.

Yoni Assia, Co-Founder, and CEO at eToro said,

“As a company with one eye constantly on ‘what’s next,’ eToro sees huge potential in the metaverse and a range of new digital assets.”

Of late, more prominent brands are circling towards NFTs. Notably, since Visa purchased CryptoPunk in August 2021, high-profile names have followed its lead. KPMG Canada bought a World of Women NFT in February. At the same time, Universal Music Group constructed an NFT band around a Bored Ape figurehead.