Date of Award
2023
Document Type
Thesis - Open Access
Degree Name
Master of Arts (MA)
Department
Art Business
First Advisor
Lawrence Motz
Second Advisor
Noah Kupferman
Abstract
Art price inflation, rising levels of wealth, and the artworld’s financialization have
changed the way investors view the art market. In an attempt to capture the
momentous returns realized by successful collectors, art investment funds have
emerged with the conviction art can be used as a speculative or strategic alternative asset. However, the majority of art funds have been dissolved or put on hold. This paper examines the investment characteristics of fine art to uncover the rationale for art investment fund failures, finding the art market’s inefficiency as the foremost explanation. Subsequently, non-fungible token (NFT) art and collectibles – a new digital submarket of the artworld – are explored as an alternative to fine art
investment. Through analysis and comparison of both fine art and NFT markets, this paper argues the NFT art and collectibles market is considerably more efficient, and therefore a more viable investment option than fine art for art investment funds.
Recommended Citation
Osborne, Francesca, "Art Investment Funds and NFTs" (2023). MA Theses. 154.
https://digitalcommons.sia.edu/stu_theses/154
Distinction
1
Included in
Fine Arts Commons, Portfolio and Security Analysis Commons, Technology and Innovation Commons