Young Collectors ❤️ Fractional Investing
Also, get ready for the Plein-verse
Cultured is a newsletter by Otis that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more.
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🗞 STORIES OF THE DAY
Younger collectors are big on fractional ownership of art
Collectors are warming up to fractional ownership of artworks, according to Deloitte’s 2021 Art & Finance Report. Around half of collectors under 35 say they’re interested in fractional investing, compared to 17% of older investors.
In an interesting turn, wealth managers were actually more supportive of fractional investing than collectors or art professionals. That’s probably because their clients are increasingly asking about fractional investing — the number of wealth managers who reported clients asking about the approach tripled between 2019 and 2021.
A similar number of collectors and wealth managers said they were interested in NFTs. And like fractional investing, collectors interested in NFTs were mostly under 35.
Our Take: Fractional investments in art are gaining popularity, but divisions are emerging.
Everyone involved in the Art & Finance Report sees art as an investment class. But they differ on how to go about investing in art. While older collectors and art industry professionals believe that the best approach is outright ownership, younger collectors and some wealth managers are increasingly interested in fractional ownership. Wealth managers are likely used to fractional investing as an approach, having used it elsewhere in their portfolios. Younger collectors are more willing to change their investing approach and less likely to have the kind of capital needed to buy a work outright. Together, the two groups are a powerful force in bringing fractional ownership to the forefront.
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The internet is terrified of Philipp Plein’s incursion into the metaverse
Philipp Plein, the fashion mogul best known for dressing every influencer you hate on Instagram, is colonizing the metaverse. The King of Flea Market Knockoffs just bought a $1.4 million plot of land in Decentraland.
What aesthetic delights does Plein have in store? He’s working with digital artist Antoni Tudisco to design “Plein Plaza,” a virtual shopping center with stores, residences, and a hotel.
If you’re wondering what a metaverse run by Plein might look like, take a look at his Bel Air mansion. Oh, and maybe there will be a touch of plagiarism.
Our Take: Plein’s misadventure in the metaverse is a warning sign. We’re bracing ourselves for a host of projects from those with enough cash to make their dreams a reality.
Until now, most of the metaverse projects we’ve seen have been made by widely liked tastemakers. Gucci’s digital-only bag, Ralph Lauren’s Roblox store, and Balenciaga’s Fortnite skins are all things that appeal to discerning collectors who want to experience the metaverse. But Decentraland is democratic by nature and that means that anyone with enough cash to buy virtual real estate can make their mark.
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✨ AROUND THE INTERNET
Are right-clickers stealing intellectual property? We don’t know, but this lawyer does.
Alternative medicine guru Deepak Chopra has found his way to alternative assets. His first NFT? A guided meditation.
Sotheby’s just finished auctioning off Virgil Abloh’s LV x Nike AF1 collab, with one pair going for $350,000. In total, the sale brought in more than $25 million — 8x the estimate. Get ready for the eBay clones.
As Venice gears up for the Biennale, residents are taking to the streets to protest the art exhibition’s sprawling presence.
Fox Entertainment has acquired the rights to Gumby — the beloved green claymation character. His evergreen beauty will be immortalized in the metaverse after the overlords at Fox turn him into an NFT.
