Date of Award

2023

Document Type

Thesis - Open Access - With Distinction

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.

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