Fine Art as an Asset Class; maximising the impact of
The edge that DLT-based platform for securitisation offer has yet to be exploited and while we have identified a few (Maecenas among them, pioneering in fine arts) we expect to see an increasing range of assets turned into new asset classes
By FINTECH Books Contributor, Miguel Neumann
Follow: @migue_or_mike
There has been a growing trend of new assets becoming part of the crowd economy, yet theFine Art Market is yet to be disrupted.
If we consider that the value of individual asset are in line with real estate (a range of $1m to $100 for individual assets from recognised artists)it makes us wonder how they haven’t become more popular.
The questions is quickly answered: a combination of lack of transparency, liquidity and operational intricacies has kept investors away of what otherwise could be an undeniably good performing, uncorrelated asset.
We have come to conclude that there is a huge opportunity and a growing appetite for sophisticated products that investors can commit, and technology will take the role of the deciding factor improving the identified issues mentioned above.
Several white papers published in the last two years (Deloitte, Barclays,Knight Frank) are pointing to similar conclusions, and we are witnessing now new Fine Art Investmentplatforms appearing in response – however there are still very few players maximising the advantages that distributed ledger technologies offer to structure products of this kind.
The edge that DLT-based platform for securitisation offer has yet to be exploited and while we have identified a few (Maecenas among them, pioneering in fine arts) we expect to see an increasing range of assets turned into new asset classes, following the (a) the investors appetite of better performing products and (b) the technological possibilities of asset attribution now available.
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