Music ETFs are turning tunes into assets, here's what that means

Music ETFs are turning tunes into assets, here's what that means

While investors may have doubt about NFTs due to fluctuations, exchange-traded funds (ETFs) linked to music offer a more stable option.

FPJ Web DeskUpdated: Tuesday, February 07, 2023, 08:46 PM IST
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It isn't new to come across the same tune on every other reel or story on Instagram, one a song becomes a trend. Music also mesmerised the blockchain ecosystem, ever since Kings of Leon became the first to sell their album as Non-Fungible Tokens (NFTs) online. But while investors may have doubt about NFTs due to fluctuations, exchange traded funds (ETFs) linked to music offer a more stable option.

What are music ETFs?

In tune with market regulations, these ETFs are a lot like mutual funds, and will offer a pool of music industry stocks to invest in. The Clouty Tune ETF will be launched by Tidal ETF Trust, and will include global firms offering music, entertainment and media services. So far, ETFs worth $3.2 million, linked to Korean entertainment and KPOP, are also available for music loving investors.

Dancing to the listener's tunes

These ETFs will track the Clouty Tune index with 50 firms, while institutions are only looking at larger themes such as tech and innovation. The prices of stocks on this index will be swayed by the tunes that people are listening to more often.

Artists monetising tracks

Although the music and entertainment industry is out of tune with layoffs at Spotify and a hiring freeze at Disney to cut costs, artists are cashing in on hits. One of them is Justin Bieber who sold rights to his song 'Baby' and more on his catalog, with equity houses keen on buying timeless tunes. To make it easier for artists to price catalogs and music lovers to own a part of their favourite hits, music ETFs offer a more consolidated asset.

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