The alternative asset space has seen accelerated growth over the past 24 months. Platforms that encourage investment in a variety of verticals ranging from NFTs and culture to farmland have seen an increase in their funding and transaction volume. This week Heat check breaks down the growing trend of alternative asset investing and fractional ownership.
the Heat check contextualizes the different verticals stemming from the “financialization of everything” movement. In this context, marketplaces have been created to facilitate the trading of assets that would previously have been inaccessible to traditional consumers. One of the biggest verticals that has emerged is the culture vertical. Cultural asset platforms have seen strong traction and adoption, with the most recent example being StockX announcing its IPO plan earlier this year.
Other platforms in the space have also seen tremendous volume and adoption:
- Royalty exchange
- Star Stock
- to collect
So why is the alternative asset space important? According to reports from BlackRock and JP Morgan, institutional investors flocked $1.1 trillion of new money in alternative assets in 2021 with total alternative assets under management exceeding $9 trillion. Traditionally, this represented investments in private equity, real estate and hedge funds by large institutional investors. Recently, consumers have been looking to get into the alternatives game and their preferred asset classes are wide ranging.
NFTs and trading cards have been two of the most popular investment vehicles with consumers over the past couple of years. The volume of NFT transactions reached $13.1 billion and the national collectible card market is expected to reach $61 million by 2027.
View the full report here.
ICYMI: Last week we released a new Heat check on Investor Forecasts for 2022. You can access this report and our entire research catalog at Insights HQ.