88% of wealthy art collectors surveyed are interested in buying NFTs 16

88% of wealthy art collectors surveyed are interested in buying NFTs

The report notes the growing interest in NFTs

According to the new 2022 Art Market Report, a whopping 88% of High Net Worth (HNW) traditional art collectors say they are interested in buying digital art in NFT form.

According to The Art Market 2022 report, published jointly by annual art exhibition Art Basel and Swiss banking giant UBS, activity in the digital art market is likely to remain strong in 2022 as more traditional art collectors enter the space.

And while 88% of wealthy people who responded to the survey said they were interested in buying NFTs, only 4% said they were “not interested at all.”

The report notes the growing interest in NFTs, stating:

“One of the biggest developments in the broader art industry in 2021 has been the explosion of interest in NFTs, even if at the moment most NFT sales have been outside of the traditional art market.”

In addition, the report also notes that more than half — 56% to be exact — of the large investors surveyed said they were not just interested, but actually planning to buy digital art.

This figure was even higher among collectors who self-identified as millennials, with 61% of them planning to make an NFT purchase. 

In addition, above average interest was observed among collectors from Taiwan, Singapore and the UK, where more than 60% of respondents said they plan to buy one or more NFTs.

The figures were based on responses from 2,339 wealthy collectors who are “active in the art market” in a number of major countries, including the US, UK, mainland China, Hong Kong and others.

“There is no indication that interest in NFTs will wane in 2022,” the report says based on the findings. He added that 2022 is likely to be “a more revealing year” for assessing whether the growth seen in the NFT market can be sustained.

Meanwhile, the report also points out some risks for the NFT sector, stating that “anyone can create NFTs at a very low cost.”

This can happen “even if they don’t have rights to the content, and intellectual property infringements are often hard to dispute because of the anonymity they provide,” the art market report said.

He added that low-quality art and outright scams in the digital art market made him prone to “speculative buying and selling” and stated that doing so was made easier by the much faster transaction speeds in the digital world.

In terms of other key findings, the report states that:

  • Most dealers and auction houses are “generally positive” about the NFT’s impact on the art market.
  • In 2021, leading auction houses Sotheby’s and Christie’s sold $230 million worth of NFTs, with the firms generating more than $14 billion in gross revenue.
  • Platforms (such as OpenSea) selling NFTs outside of the traditional art market have been “noticeable and have generated significant sales in 2021”.
  • NFT sales of both art and collectibles on online platforms outside of the traditional art market have grown from $4.6M in 2019 to $11.1B in 2021.