New Citi GPS Report Looks at Factors That Have Helped the Global Art Market Transform through the COVID-19 Pandemic

Rhea-AI Summary

Citi released a report examining the ongoing transformation of the art industry, particularly influenced by NFTs. The report highlights a surge in NFT sales, reaching nearly $25 billion in 2021 and $7.4 billion in January 2022. Art sales have significantly increased, with $2.3 billion sold at November 2021 auctions alone. The Masterworks.io All Art Index reported a 28.2% return from January 2020 to June 2021. It also notes trends towards recognizing diverse artists and the impact of regulatory measures aimed at preventing fraud in the art market.

Positive

• NFT sales reached nearly $25 billion in 2021 and $7.4 billion in January 2022.
• Art sales increased by $2.3 billion during November 2021 auctions.
• Masterworks.io All Art Index delivered a 28.2% return from January 2020 to June 2021.
• Rising interest in diverse artists and genres, expanding access to the art world.

Negative

• Regulatory issues related to trademark infringement and potential for fraud.

The rise of a new art medium – non-fungible tokens, or NFTs, are providing a new way to consume art and collectibles and disrupting traditional art ownership model through a kind of democratization

NEW YORK--(BUSINESS WIRE)-- Citi today released a new follow-up Citi Global Perspectives & Solutions (Citi GPS) report that takes another look at how the art industry continues to transform and adapt throughout the COVID-19 pandemic. Global Art Market Disruption covers how the shift to digital has given a wider range of people access to the art world than ever before, leading to a stronger focus on diverse artists and genres, and on artists who work outside mainstream platforms. A key driver of this evolution is the rise of non-fungible tokens, or NFTs.

“We went from NFTs being nearly non-existent at auction in 2020, to this new market generating sales of almost $25 billion in 2021 and posting an additional $7.4 billion in January 2022 alone,” said Suzanne Gyorgy, Citi Private Bank’s Global Head of Art Advisory & Finance. “The art market continues to show that even through unprecedented challenges, such as the COVID-19 pandemic, it is an industry that has proven its resilience.”

With the introduction of NFTs in the market, art sales increased drastically, with $2.3 billion of art sold in just a two-week span at the November 2021 auctions. The strength of the art market throughout the COVID-19 pandemic is also reflected in the performance of major art indices. From January 2020 through June 2021, the Masterworks.io All Art Index delivered a 28.2% return.

Other important trends for the art world transformation include:

- Rising interest in less established artists and showcasing their work

- Academic institutions and private collectors reshaping the art historical canon, which is now drawing long overdue attention to women, artists of color, and other demographics

- Shifting tastes in collections and the definition of what constitutes art

The report also covers the impact of regulation on the art market and issues surrounding trademark infringement, security regulation, and the potential for fraud and abuse. Additionally, lawmakers around the world have started to implement laws and regulations to minimize the potential for criminal activity in the art market.

About Citi:

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220317005064/en/

Media contacts:

Gabriel Morales – Citi Private Bank

gabriel.morales@citi.com

Susannah Gullette – Citi Research

susanna.gullette@citi.com

Source: Citi

FAQ

What was the NFT sales figure reported by Citi for 2021?

Citi reported NFT sales reached nearly $25 billion in 2021.

How much art was sold during the November 2021 auctions?

In November 2021, art sales totaled $2.3 billion.

What return did the Masterworks.io All Art Index deliver?

The Masterworks.io All Art Index delivered a 28.2% return from January 2020 to June 2021.

What trends in the art industry were highlighted in the Citi report?

The report highlighted a shift toward recognizing diverse artists and changing definitions of art.

What regulatory challenges does the art market face according to the report?

The report discussed regulatory issues related to trademark infringement and potential fraud.