Art has long been an appealing option for investors across the globe who are seeking to diversify their portfolios, offering both aesthetic and financial value. Today, the U.S. remains the largest art market in the world, with China and the U.K. following closely behind.i If considering investing in art, it’s important that your financial advisor understands your motivation, as art is a long-term, illiquid investment. Are you seeking gains, or are you passionate about and interested in art, and therefore want to “own a piece of it?” A holistic financial advisor can help you determine the appropriate asset allocation within your portfolio and can often connect you with artists, art dealers, or gallery owners who can help you determine the type of art in which you wish to invest. As the art market evolves, these experts can keep you informed on the latest trends and shifts that can impact your investment strategy. A financial advisor will also help you to plan ahead in navigating the division of your collection.
Below, we explore key trends influencing the art investment landscape in 2025 and beyond, drawing insights from industry experts and market reports.
Digital Art and NFTs Continue to Evolve
In recent years, digital art and Non-Fungible Tokens (NFTs) have disrupted traditional art investment paradigms. While the initial wave of NFT hype cooled off in 2022 and 2023, the technology has since matured, and investors are now approaching it with more caution and sophistication. According to a report from Art Basel and UBS,ii the digital art market continues to grow, with high-value transactions being driven by a blend of traditional art collectors and younger, tech-savvy investors.
NFTs now often come with added utilities, such as access to exclusive events, digital communities, or shared ownership, making them more than just pieces of digital art. The integration of blockchain technology provides enhanced provenance tracking, minimizing the risk of forgery and fraud — key concerns for art investors.
Art Funds Gaining Traction
Art funds, which pool investor capital to purchase a diversified collection of artworks, are becoming more popular as a way to lower risk and broaden exposure. These funds enable investors who may not have the resources or expertise to buy high-value art directly to participate in the art market. A study from Deloitte’s 2023 Art & Finance Reportiii shows that art funds have seen steady growth, especially as they appeal to institutional investors seeking alternative assets.
Investors should note, however, that these funds come with their own sets of fees and management complexities. Proper due diligence is necessary to assess the fund manager’s expertise, fee structure, and historical performance.
Emerging Artists and Regional Markets
While blue-chip artists like Picasso, Warhol, and Basquiat continue to dominate headlines and auctions, there is growing interest in emerging artists and regional art markets. The rise of social media platforms such as Instagram and specialized online art marketplaces have allowed artists from regions previously underrepresented in the art world, like Latin America, Africa, and Southeast Asia, to reach global audiences.
“Viewing and collecting emerging art is a great way to begin. The price points are lower, and more importantly, the early support to these artists and their respective galleries, which are effectively small businesses, is incredibly impactful to them,” says Gabe Schulman, Managing Director at Lenox Advisors. “Collecting art should be a long-term game, and developing relationships early will not only compound any value that accretes, but it will create a meaningful bond with the artist that can last a lifetime.”
Investing in emerging artists provides a lower entry cost and the potential for significant appreciation. According to Artsy’s Art Collector Insights,iv sales from up-and-coming artists increased by over 20% in 2023, showcasing that collectors and investors are willing to venture beyond established names to find hidden gems.
Fractional Ownership and Art Democratization
One of the most disruptive trends in art investing is fractional ownership.v Companies like Masterworks and other platforms are enabling investors to buy shares in high-value artworks, similar to how stocks are bought and sold. This democratization of art investing opens up the market to a broader demographic, enabling smaller investors to partake in the appreciation of iconic works that were once only accessible to ultra-wealthy collectors.
Fractional ownership also adds liquidity to the art market, a feature that has traditionally been lacking. While some critics argue that this model could lead to price volatility, proponents see it as a way to modernize the market and attract a new wave of investors.
Sustainability and Ethical Investing
Sustainability is a growing concern across all asset classes, including art. More collectors are becoming aware of the environmental and ethical implications of their acquisitions. Sustainable practices in art involve not only the sourcing of materials but also the promotion of artists whose work highlights social and environmental issues.
A report from The Art Newspapervi notes that galleries and auction houses are now more inclined to promote artists whose work aligns with global sustainability goals. In addition, art fairs and exhibitions have increasingly adopted environmentally friendly practices, such as reducing waste and carbon emissions.
Investors looking to incorporate art into their sustainable portfolios should consider the provenance of the artwork, the artist’s message, and the carbon footprint associated with its production and transportation. Art that aligns with environmental, social, and governance (ESG) criteria is gaining traction as a desirable category among younger, values-driven collectors.
Technology and Data-Driven Art Investing
The art market has historically lacked transparency, making it difficult for investors to obtain accurate data on prices, trends, and the long-term appreciation of individual artists or genres. However, technology-driven platforms are changing this landscape by providing detailed analytics and market insights.
Platforms like Artnet and Artprice offer investors valuable data on auction results, artist performance, and market trends, which can inform buying and selling decisions. AI-driven art evaluation tools are also being employed to assess artwork and predict potential future value, giving investors more confidence in their purchases.
Other Emerging Trends
Other emerging trends to watch in 2025 include textured art, folk art, textile art and sculpture, specifically produced by women and people of color.vii In this article from Veranda Magazine, Sarah Dimarco quotes Audra Kiewiet de Jonge, founder of Art/artefact, “…collectors today want their art to evoke feelings of wonder and discovery…People are embracing the thrill and marvel of collecting unique and special objects.” Keli Hogsett, founder of CoCollect, states, “In the digital world we live in today, artworks with deep texture will trend in 2024 as they inextricably communicate the unique touch of originality and humanity to their viewer.” Each of these trends offer depth and vibrancy in a flat, digital world.
Summary
The art market is evolving in ways that are making it more accessible, diversified, and technologically sophisticated. From the maturation of NFTs and the rise of fractional ownership to the ethical considerations reshaping the market, investors must stay ahead of these trends to navigate this unique asset class effectively. Whether through direct acquisition, art funds, or fractional shares, including art in an investment portfolio can offer both financial return and cultural enrichment.
As with any investment, the key to success lies in diligent research, understanding market dynamics, and aligning your art investments with your broader financial goals.
Wealthspire Advisors brings significant expertise in working with professional artists as well as art and collectible collectors. We recently announced the launch of “Art InSpired,” an initiative that aspires to elevate awareness of the arts and to educate investors on the financial aspects of art and collecting. As a firm, we are committed to supporting the arts through hosted events, community sponsorships, and educational content. Learn more at www.wealthspire.com/arts.
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[i] https://www.statista.com/topics/1119/art-market/#topicOverview
[ii] https://theartmarket.artbasel.com/the-art-market-2024/welcome
[iii] https://www.deloitte.com/content/dam/assets-zone2/lu/en/docs/services/financial-advisory/2023/art-finance-report-2023.pdf
[iv] https://www.artsy.net/article/artsy-editorial-art-collector-insights-2024
[v] https://www.pbs.org/newshour/show/is-art-a-good-investment-experts-weigh-in-on-stock-markets-for-artwork
[vi] https://www.theartnewspaper.com/2023/09/22/art-charter-climate-action-climate-week-new-york-alliance
[vii] https://www.veranda.com/luxury-lifestyle/artwork/a46106148/art-trends-2024/
