This week’s featured collector is AaronHaber
AaronHaber is a writer and comedian with a passion for Ethereum NFTs. Check out their collection at lazy.com/aaronhaber
The results of last week’s poll: Will the U.S. crypto regulation bill impact the global NFT market if passed?
Last week’s poll results show that a staggering 60% of respondents believe the U.S. crypto regulation bill will massively impact the global NFT market if passed. Only 20% believe it will have minimal or no impact.
This overwhelming expectation of a substantial global impact suggests that NFT collectors and enthusiasts are closely monitoring the regulatory developments in the U.S., recognizing that the country’s stance on crypto and digital assets could set a precedent for other nations to follow. The high percentage predicting a “huge impact” implies that the bill’s passage could potentially reshape the NFT landscape, influencing factors such as investor confidence, project attraction, and the focus on decentralization.
As the bill progresses through the legislative process, NFT collectors worldwide will need to stay informed about its implications and adapt their strategies accordingly, while also keeping an eye on regulatory developments in their own regions.
Ethereum ETF Approval is on the Horizon in US
Attention, NFT collectors! In a turn of events that just a few weeks ago seemed practically impossible, spot Ethereum ETFs are one step closer to reality in the U.S.
According to a report in The Block, the U.S. Securities and Exchange Commission has asked prospective issuers to submit their amended S-1 forms by Friday, according to two sources familiar with the situation. This move comes after the SEC approved the 19b-4 forms on May 23, leaving only the S-1 forms to become effective before trading can commence. VanEck and BlackRock have already submitted their amended S-1 forms, with the latter detailing a $10 million seed investment for its ETF. However, the process may take a few weeks or even months, as the forms are expected to go through at least two more rounds of draft filings before they are ready.
What does this mean for NFTs? Well, for one thing it shows that crypto is becoming fully entrenched in the financial system. The introduction of spot Ethereum ETFs could potentially bring more mainstream attention and liquidity to the market, which may have a ripple effect on NFT valuations and adoption. As Ethereum becomes more accessible to institutional investors and the general public through these ETFs, it could drive up demand for the cryptocurrency, leading to increased activity on the Ethereum blockchain. This, in turn, may attract more users to the NFT space, as many popular NFT marketplaces and projects are built on the Ethereum network.
Furthermore, and this is a long shot, the approval of spot Ethereum ETFs could pave the way for other crypto-related investment vehicles, such as NFT-focused ETFs or funds. This would provide NFT collectors and creators with more opportunities to diversify their portfolios and gain exposure to the growing NFT market.
However, it’s important to note that the impact of spot Ethereum ETFs on the NFT space is not guaranteed and may take time to materialize. As with any investment, there are risks involved, and the crypto market is known for its volatility. NFT collectors should continue to do their own research, stay informed about market developments, and make decisions based on their individual goals and risk tolerance.
NFT Indexes Fall to Record Lows
Despite optimism over the ETH ETF, the NFT market continues to face challenges, with indexes designed by crypto analytics platforms Nansen and CryptoSlam falling to their lowest levels since launch.
Nansen’s flagship NFT-500 index, which tracks 500 selected Ethereum-based collections, dropped to 213 points on May 26, suggesting that a $1,000 investment at the beginning of 2022 would now be worth just $213. Other indexes representing various NFT categories, such as Blue-Chip 10, Metaverse, Social-100, Art-20, and Game-50, are also either at or near their record lows.
Metaverse NFTs have been hit the hardest, with their index falling by 92% to a record low of 80 in mid-April 2024, before recovering slightly to 91 points. Meanwhile, CryptoSlam’s Composite NFT-500 Index, which tracks 500 collections across 11 non-Bitcoin chains, touched its lowest level on May 19, representing a staggering 95% decline from its launch.
The NFT market has been in a prolonged slump since the hype of 2021, with recent recovery attempts mainly driven by Bitcoin NFTs built on the Ordinals protocol, which are not tracked by these indexes.
Despite the current downturn, the long-term potential of NFTs remains promising, with the technology finding applications in various industries, from art and gaming to real estate and beyond. As the market matures and adoption grows, we may see a resurgence in NFT activity, but for now, collectors should exercise caution and make informed decisions.
Read more at NFTGators.com
This week’s poll: What’s your reaction to the NFT market downturn as seen in the falling indexes?
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