The edition sports folio: Like a DAX fund for art-Arttrade, enables investment in blue chip works for broad investors

The edition sports folio: Like a DAX fund for art-Arttrade, enables investment in blue chip works for broad investors

The edition sports folio: Like a DAX fund for art

art is considered an asset class that can combine high returns and emotional connection. Similar to stocks, gold and cryptocurrencies, more and more investors see art than an important addition to their portfolio. But there is a catch: While practically everyone can invest in the greatest stocks or cryptocurrencies, it is only possible to invest their money in the 100 most successful artists.

In order to open this exclusive market for a wider mass of investors, the Startup Arttrade wants to to be token and thereby make it more tradable. Established startups such as finexity or timeless offer similar solutions. However, the difference is that Arttrade with the Weng Fine Art AG edition sports folio offers a portfolio solution that is structured similar to a fund. Instead of just investing in a single work of art by Gerhard Richter or Damien Hirst, investors can invest in several so-called Blue-Chip works via the selection of the listed art trade company WFA and benefit from their increase in value.

In addition to the interest in art, the returns also play a convincing role. According to Julian Kutzim, one of the three co-founders of Arttrade, Blue chip works of blue, i.e. works by the top 100 artists, have proven to be very high in the past two decades, with an average annual return of 8.9 percent. The art market is also relatively resistant to crisis and hardly correlated with the stock market. This makes art a perfect addition to the portfolio. A Deloitte study shows that 85 percent of asset managers recommend investing their customers in art.

In order to offer investors a regulated financial product, Arttrade publishes crypto value papers. These are based on the electronic securities law (EWPG), which has been offering a legal framework for securities on a blockchain since June 2021 in Germany. The decision for a token -based investment solution is obvious, since this is associated with lower costs, faster processing, versatility and more transparency. By avoiding superfluous intermediaries, up to 80 percent of the costs can be saved compared to conventional financial service providers.

It is important to note that art as an investment does not promise a quick profit. The sale of the works of art is not in the hand of the buyer, but at Arttrade. The holding time is often five years or more, which is why such an investment is more suitable for long -term investors. The minimum investment amount is 1,000 euros, so that people with low capital are excluded. Nevertheless, the new fund solution from Arttrade in cooperation with Weng Fine Art seems to be a good opportunity for investors who want to diversify their portfolio with works by the blue chip artist.

Disclaimer: The article only reflects the author's personal opinion. It is not an investment advice or purchase and sales recommendations.