Are these the best NFT stocks to watch?
Non-fungible tokens (NFTs) have taken the digital world by storm. Once associated with overpriced works of art, the NFT world is now attracting the interest of traders and investors. Learn how to get exposure to NFT stocks.
What’s on this page?
What is an NFT?
An NFT is a digital asset that can be bought and sold just like any physical asset, such as a work of art or a piece of limited edition memorabilia. However, it takes on a digital form. The value of an NFT comes from its uniqueness, which is codified in the blockchain.
Each NFT can be bought and sold via NFT marketplaces such as OpenSea and Binance, with some NFT traders doubling or even tripling the market value of their investment within a matter of months.
What is an NFT stock?
An NFT stock is shares of a company that’s involved in the NFT market in one way or another. It’s a popular way to gain indirect exposure to the NFT market. NFT company stocks are still relatively few and far between, but more and more companies are expanding into the sector. The best NFT shares may come from companies offering their own NFT collections, or by supplying the technology required to power the NFT ecosystem.
The tech behind the NFT industry is growing every day, and it is the same technology that maintains the ETH blockchain, which means that any NFT stock list will be closely correlated with the crypto markets.
How to buy NFTs stocks
Many traders want to know how to invest in NFT stocks and how to trade NFTs. There are two ways to do this:
- By investing in NFT tokens directly
- By trading or investing in NFT stocks via a broker like us
If you want to invest in tokens directly, you’ll need to have a crypto wallet to make payment. However, this can be quite a tedious process.
With us, you can get exposure to NFT stocks by trading via CFDs, or investing in them using our share trading platform. This means you won’t own NFTs outright, but you can speculate on or own the stocks associated with them. Here are the differences between trading and investing
|Trading NFT stocks||Investing in NFT stocks|
|Speculate on the price of NFT stocks rising or falling||Buy and sell underlying NFT stocks|
|Leverage your exposure – you’ll only pay a deposit to get exposure to the full position size||Pay the full value of the shares you buy upfront|
|Leverage means both profit and loss will still be magnified to value of the full trade – so you could gain or lose money faster than you’d expect||You may get back less than you put in because the value of shares and ETF can fall as well as rise|
|Take shorter-term positions||Focus on longer-term growth|
|You can look to hedge your portfolio when trading||Build a diversified portfolio|
|Trade without owning the underlying asset||Take ownership of the underlying asset|
|No shareholder privileges||Gain voting rights and dividends (if paid)|
|Trade using our CFD trading account||Invest in our share trading account|
*Note that both trading and investing carry risk. Always make use of our risk management tools before opening a position.
10 top NFT stocks to watch
Note that these aren’t necessarily the best NFT stocks to buy, but rather some of the more popular NFT stocks based on various factors such as market cap, future growth prospects, dividends and more.
The best NFT stocks to buy will depend on your own personal choices – you may choose a stock based on the value of their own NFT collections, or based on their ability to use their existing technology and reach to scale the NFT market.
The French art database Artprice rebranded as Artmarket in 2019, and launched its NFT marketplace in December 2021. Over the past few years, Artmarket has integrated blockchain and cryptocurrency functionalities, and has made it clear that its future is digital.
Between 2022 and 2025, the company intends to become a key name in the world of Web3, NFTs, cryptocurrency and the metaverse. The company has spotted a gap in the market to provide a standardisation and certification service for NFTs and recently told shareholders that it was predicting ‘at least double digit growth’ in the years ahead.
The video game company celebrates its 50th anniversary in 2022 under the leadership of newly appointed thirty-something CEO Wade Rosen. He plans to move the brand away from its previous model of brand licensing and into blockchain-based content.
In 2021, Atari released its own capsule collection of NFTs, raising a reported $110,000 from their sale. Since then, the company has launched the Atari Casino metaverse, which has been described as a gambling-related open-world game featuring NFTs.
Best known as the world’s biggest online auction platform, eBay has one of the most popular e-commerce infrastructures at its fingertips.
In 2021, the company announced that it was updating its policy to include the sale of NFTs, with a view to making NFT sales a key part of its online offering. Since then, the platform has begun creating its own exclusive NFTs, and has hinted at integrating crypto payments, in a sign that the e-commerce giant sees digital assets as a key part of its future plans.
Funko is best known as the brand which creates big-headed figurines based on well-known characters in pop culture. As a result, it has cultivated some strong relationships with TV producers and other creators, which it has leveraged to enter the NFT world.
Digital Funko Pop! NFT art packs can be bought for as little as $10, as the company targets the more affordable end of the NFT market.
Mattel may seem like an unusual NFT stock pick, but the toymaker had a lot of success from its Hot Wheels NFT packs, which quickly sold out when they were launched in November 2021. This was followed up by a second Hot Wheels collection, and in early 2022 Mattel teamed up with fashion brand Balmain to offer a limited range of Barbie and Ken NFTs.
Like eBay, Shopify benefits from having an existing e-commerce platform which can easily be tweaked to trade NFTs alongside physical assets. As of March 2022, Shopify’s NFT business was still in its beta phase, but there are plans to allow users to mint, drop and sell their own NFTs.
It markets its upcoming offering as a somewhat more simple way to buy and sell NFTs, which may appeal to novice players in the market.
Cryptocurrency exchange platform Coinbase boasts 89 million users in more than 100 countries, so it was no surprise when the company announced plans to launch its own NFT marketplace in October 2021. More than 600,000 people signed up for the waitlist, causing the sign-up page to crash due to high traffic. However, as of April 2022, the NFT marketplace had yet to be launched.
Once live, the Coinbase NFT marketplace has the potential to overtake NFT market leader OpenSea in terms of sheer user volume.
The French video game company didn’t have the best start in the NFT world. In late 2021, it launched an NFT project called Ubisoft Quartz, which aims to turn in-game cosmetics into collectible NFTs. However, the response was overwhelmingly negative, even among Ubisoft’s own employees who derided the project as an exercise in ‘private property, speculation, artificial scarcity, and egoism.’
A Quartz executive hit back, saying that video game fans don’t get the benefits of NFTs. The company is clearly committed to its NFT business, but time will tell if the gamble pays off.
NVIDIA is best known for manufacturing the graphic cards which power everything from laptops to electric cars. The company has been vocal about its plans to scale within the Metaverse while exploring other virtual and digital markets.
In January 2022, it said it would give away software for free to artists and other creators building virtual worlds, paving the way for its own NFT marketplace offering.
Galaxy Digital Holdings
In October 2021, investment manager Galaxy Digital Holdings raised $325 million to fund metaverse gaming and NFTs. The following month, Galaxy’s CEO Mike Novogratz announced that the firm had launched its first NFT collection with a CryptoPunk etching.
Novogratz is bullish on the future of NFTs, saying that in 10 years NFTs will ‘completely [change] the way we interact’, and won’t be limited to digital artworks.
Top 10 NFT stocks to watch summed up
- NFTs are digital assets that are becoming more popular, and more valuable
- You can buy and own NFTs, or trade or invest in NFT stocks
- The top NFT stocks to buy will depend on your risk appetite and specific areas of interest
- Some exciting NFT stocks include eBay, Atari, Artmarket and NVIDIA
- Open an account with us to trade or invest in NFT stocks
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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