Last week was a very eventful one in the art world. Art Basel opened on its home turf in Switzerland, with over 200 galleries presenting works by top international artists (we've highlighted a few selections here). Back in the US, and Web3, in a white-glove auction of digital art from the seized 3AC collection, Sotheby's sold Dmitri Cherniak's iconic Generative Art NFT 'The Goose' for $6.2M. A packed auction room (and even a few IRL bidders) proved an unwavering interest and demand for digital art.
For our 8th Edition of Appraisal Bureau News we are zooming in on fractional art ownership. While technology has granted new formats through which to diversify one's financial portfolio by owning a piece of a blue-chip artwork, the concept and practice existed long before. On the theme of art and finance, we also sat down with Rebecca Fine of Athena Art Finance to discuss the business of art lending, read the interview here.
- Caroline Taylor, Founder, Appraisal Bureau
Sotheby's, Grails: Property from an Iconic Digital Art Collection Part II, June 15
Fractionalized Ownership of Art: Benefits and Insights
There has been a proliferation of new platforms and vehicles offering fractional ownership in recent years, but the concept of multiple owners of a work of art is not new. Since the late 2000s, models have been growing in numbers, while broader dialogue and appreciation of art as an investment has accelerated.
What are the benefits of Fractional Ownership?
As always, not all funds are created equal. The track record of the platform or investment manager is crucial as the art market speaks a different language than financial markets. Yieldstreet, which plans to launch its fifth diversified Art Equity Fund later this summer, reports a weighted average growth of more than 25% since acquisition of the artworks, based on year end independent third-party appraisals.