NFTs as a Resilient Asset Class: Why Institutional Collectors Are Still Buying

The NFT market has weathered significant volatility since its 2021 boom, yet institutional demand remains robust in 2025. This resilience stems from a fundamental shift in how NFTs are perceived-not as speculative collectibles, but as tools for securing ownership in a digital-first, AI-driven economy. As Yat Siu, co-founder of Animoca Brands, argues, NFTs are redefining value preservation and creator empowerment in ways that align with the long-term interests of institutional investors.

Yat Siu on NFTs as Digital Capitalism's Building Blocks

Yat Siu has long positioned NFTs as a solution to the ownership challenges posed by AI and centralized platforms. In a December 2025 interview, he emphasized that NFTs act as "digital stores of culture and intellectual property", enabling creators to monetize their work without intermediaries. For instance, educators in Venezuela have leveraged NFTs to sell educational content, bypassing traditional distribution channels and earning income with minimal transaction costs. Siu argues that blockchain's immutability and decentralization are critical for verifying ownership in an era where AI-generated content blurs the lines of authorship. He likens NFTs to "foundational infrastructure for digital capitalism", a framework where individuals can claim and protect their creative outputs-from TikTok dance trends to digital art-without relying on centralized gatekeepers.

Siu's vision extends beyond individual creators. He highlights how digital property rights, enabled by NFTs, can democratize access to economic systems. In a world where monopolies have historically excluded large populations from capital, tokenized assets and decentralized ownership models offer a path to financial inclusion. This perspective resonates with institutional investors seeking assets that align with broader societal and technological trends.

Sustained Institutional Demand: RWAs and Regulatory Clarity

The 2025 NFT market cap has grown to $6.6 billion, up from $3.98 billion in 2024, driven by the tokenization of real-world assets (RWAs) and improved regulatory frameworks. Institutional adoption has accelerated in jurisdictions like the European Union and the United States, where regulations such as MiCAR and the CLARITY Act have provided legal certainty. These frameworks have enabled banks and asset managers to tokenize real estate, franchises, and even intellectual property, creating a bridge between traditional finance and Web3.

High-net-worth investors are increasingly allocating capital to NFTs tied to revenue-generating assets. For example, platforms like OpenSea now support multi-chain transactions and ecosystem incentives, enhancing liquidity and utility. This shift from speculative collectibles to utility-driven assets has attracted institutional buyers who prioritize long-term value over short-term hype. As one analyst notes, "The tokenization of RWAs is the next billion-dollar NFT trend, offering tangible cash flows and reducing exposure to market volatility."

Web3's Role in Protecting Digital IP

A key driver of NFTs' investment appeal is their ability to safeguard digital intellectual property (IP). Blockchain's immutability ensures that ownership records are transparent and tamper-proof, while smart contracts automate royalty distributions. Platforms like Async Art allow artists to tokenize layered digital artworks, ensuring that royalties are distributed when each layer is sold or used. Similarly, NFT marketplaces such as Rarible and OpenSea enable creators to directly monetize their work, eliminating intermediaries and reducing revenue leakage.

Decentralized identity (DID) solutions further enhance IP protection by giving users control over their digital identities. This is particularly critical in the AI era, where generative tools can replicate or misappropriate creative works. By anchoring ownership to blockchain, creators can assert their rights in a verifiable, auditable manner-a feature that institutional investors increasingly value as a risk-mitigation tool.

Conclusion: A Long-Term Investment Thesis

The convergence of ownership-driven demand, regulatory progress, and Web3's IP protection capabilities positions NFTs as a resilient asset class. Yat Siu's insights underscore a broader narrative: NFTs are not just about digital art or virtual land but about redefining how value is created and distributed in a decentralized economy. For institutional collectors, the appeal lies in NFTs' ability to tokenize real-world assets, secure digital IP, and democratize access to capital. As the market matures, the focus will shift from speculative trading to structured investments in assets with intrinsic utility-a trend that bodes well for long-term holders.