Most buyers of art-based nonfungible tokens, unique digital assets better known as NFTs, are in for the money, not for the art itself, a survey finds.
About 82% of NFT buyers surveyed said they were motivated by investment purposes, according to the Hiscox Online Art Trade Report released Tuesday. Of those who bought NFTs worth at least US$25,000 in the past 12 months, 95% cited investment returns as the key reason for their purchase.
The survey was conducted in January by ArtTactic, a global art market research firm based in London, on behalf of Hiscox Group, a global specialist insurer. Findings are based on responses from 595 art buyers worldwide.
There is a significant gender divide in terms of why collectors buy NFTs. While 96% of male buyers made their purchases for investment reasons, only 67% of female buyers are motivated by potential returns, according to the report.
The world of NFTs “is still very much a speculator’s market so we can expect many more ups and downs,”
head of art and private client at Hiscox Group, said in a press release on Tuesday.
However, the traditional art market will likely continue to embrace NFT art, with major auction houses, galleries, art fairs, and blue-chip artists offering them to broaden their client base, the report said.
In 2021, Christie’s, Sotheby’s, and Phillips sold US$185 million worth of NFTs through public auctions—including the US$69 million Christie’s sale of