Fractional Shares...Still a market for the hobby?
Fractional shares are not a new entity and they really exploded onto the scene during the "Covid Crescendo"
During that time companies such as Collectable,Inc, OnRally, Alt and others launched their companies or were thrust into the spotlights. Some focused exclusively on sports cards and memorabilia, while others branched out with offerings of expensive handbags, luxury automobiles, rare liquors and other in-demand commodities. Between societies down time and stimulus checks, this market soared. One of the draws of fractionals is that it allows someone to own a percentage of an item without having to purchase it outright. In most cases and for most people owning that item is not a doable equation. I myself dabbled in it. I purchased some shares of the iconic 1948-49 Leaf Jackie Robinson Rookie PSA 8 when I couldn't obtain one. I sold my shares later on when I did eventually acquire this card. It wasn't anywhere close to that 8 but it was mine in totalarity. The only fractionals I now own are 7 shares of Mickey Mantle's boyhood home which I purchased through OnRally. I'm sure you get the correlation of the "7" shares but just in case there it is!
On Friday November 15th,2024 Collectable, Inc sent an email to all their account holders that they should all withdraw funds and close out shares by December 13th as they are "sunsetting" their marketplace. There has been some unrest with Collectable since it was sold to Phil Neuman. Subsequently a lawsuit has been filed by one of the investors.
Is the fractional market still a viable niche of the hobby? I think so potentially but there needs to be transparency and investors need to be able to trust the powers that be in the fractional companies themselves.
Has over 40 years of hobby experience as a collector, former LCS owner, and show dealer. He's the host of Sports Card Nation Podcast and has written for numerous hobby entities