A fine art fund manager explains what tokenisation and NFTs could do for his investors

Fine art is often cited as a natural candidate for tokenisation. It is illiquid and traded amongst a small class of wealthy investors at prices which are not always transparent. Fine art also has a long history of generating positive returns, if not the sky-high performance often touted, chiefly through capital gains. However, the entry barriers tend to be high. Minimum investments can be large, and the management and transaction costs extortionate. Art also has to be kept safely and maintained because, like other physical objects, it does decay. Frauds and fakes exceed the norm in investment. However, funds managed by experts do exist and provide a lower risk point of entry into the international art market, if not a lower price point. One of them is led by Xavier Olivella, the CEO of ArtsGain. Dominic Hobson, co-founder of Future of Finance, spoke to him about the investment strategy of ArtsGain, the sorts of investors it attracts, and what part tokenisation can play in broadening the liquidity and appeal of the asset class.