Q1 Fractional Investing Report

Wyatt Cavalier from Alternative Assets has published an exhaustive report on the state of Fractional Investing in Q1.

He did a deep dive into the four main platforms:

Rally (wide variety of assets including dinosaurs, sports cards, rare books, and fine wines)
Collectable (sports cards and memorabilia)
Otis (art, sneakers, video games, and sports cards)
-Mythic Markets (super geek — magic the gathering etc)

KEY FINDINGS AND STATS:

There were 135 IPOs in the first quarter of 2021 across 24 different asset classes.
Over $15m worth of assets IPO’ed led by Rally with over $7m.
The average ROI for all assets across all platforms for Q1 2021 was 18%.
Collectable’s early focus on sports cards gave it a big advantage.
74% of survey respondents say alternative investments will become more important in the next year.
75% plan to invest the same or more money on fractional marketplaces in Q1 as they did in 2020.
Here’s what to look forward to:
Strength from secondary asset classes like comics and game cartridges and second-tier sports like golf, racing, and boxing.
Fractionalisation of NFTs as blue chip assets separate from the rest.
New entrants will compete with both horizontal (Rally, Otis) and vertical (Collectable, Masterworks) platforms as barriers to entry diminish. Expect one or two surprises.
Relative importance shifts away from IPOs and toward secondary markets.
Improved and increased trading frequency and liquidity on secondary markets.