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Collectibles, art, and the cryptocurrency bitcoin have skyrocketed over the course of the pandemic, something many are chalking up to larger concerns about inflation. As chief investment officer at Bleakley Advisory Group Peter Boockvar explained to CNN, “People are trying to get protection from the debasement of their dollars. They want to be in things with limited supply and that have the perception of value in the eyes of many.”
This application of an IPO on a collectible item comes just as the art world is adjusting to a storm of NFT offerings at some of the biggest auction houses. These same houses—including Christie’s, Phillip’s, and Sotheby’s—have also added forms of cryptocurrency to their list of accepted payment options. Could IPOs be the next big thing in the art world?
While this is certainly possible, there are risks. For one thing, collectibles don’t generate money. While this copy of the Declaration may go up in perceived value, it cannot create cashflow in the manner of a business. Collectibles may not be suited to function long term in a system designed for stocks and bonds.
Still, the sale is fascinating and something worth paying attention to over the course of May.
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