Christie’s May Close Digital Art Department, Shift NFT Sales Into Broader Art Category as Ether Strengthens

• Christie’s merges digital art into broader auction category

• Decision follows reduced art-market sales and internal restructuring; some digital art staff retained.

• Global art sales fell 12% in 2024; auction sales declined 20% per Art Basel & UBS Art Market Report 2025.

Christie’s digital art department merges into 20th & 21st-century category — learn why this matters for NFTs and collectors. Read the latest analysis from COINOTAG.

What is happening to Christie’s digital art department?

Christie’s digital art department is being closed as a standalone unit and absorbed into the auction house’s 20th and 21st-century art category. The house will continue to offer NFTs and digital art at auction, but the structural change reflects lower secondary-market revenues and a strategic consolidation.

Why is Christie’s restructuring its NFT operations?

Christie’s cited a “strategic decision” tied to market conditions. The broader art market contracted in 2024, with global sales down 12% to $57 billion and combined auction sales down about 20%, according to the Art Basel & UBS Art Market Report 2025. Auction houses are reassessing departments that underperform on revenue.

Insiders reported layoffs affecting some digital art roles, including one vice president position. At least one digital art specialist remains on staff, indicating Christie’s intends to retain expertise while reducing departmental overhead.

Digital artist Laura El sold one of her digital artworks, known as Lonely Island at Christie’s in 2023. Source: Laura El

How could market trends have influenced this decision?

Front-loaded data shows a clear contraction: total global art sales declined and auction revenue fell sharply. For auction houses, secondary-market digital art often yields lower and less-predictable returns than established physical works.

Advisers in the field note that auction-house models — with commissions of 25–30% — may not align with the digital market, where online platforms can operate with much lower fees. That fee mismatch likely pressured Christie’s to rethink a standalone digital unit.

What have collectors and insiders said?

Some collectors argue demand for digital art remains intact and that the structural costs and commission models — not market interest — are the issue. Others see the change as a sign auctions will focus more on primary-market cultivation for digital artists rather than relying on secondary sales alone.

When did Christie’s make this change and what staff impact occurred?

The restructuring was reported in early September 2025. Reports indicate at least two staff departures tied to the shift, including the vice president for digital art, while at least one specialist remains employed to manage ongoing NFT sales.

NFT market context: What are the recent performance indicators?

The NFT market experienced a difficult 2024 but showed recovery signs in 2025. In August 2025 the sector’s market cap surged above $9.3 billion (a 40% increase month-over-month), though recent weeks show cooling with a market cap reported near $5.97 billion and modest 24-hour gains.

• CryptoPunks: +1.9% (24h), trading volume ~$208k, 3 sales

• Bored Ape Yacht Club: +3.7% (24h), trading volume > $1.2M, 30 sales

• Pudgy Penguins: +2% (24h), trading volume ~$905k, 20 sales

How might this affect artists and collectors?

Artists may find renewed emphasis on primary-market launches and direct collector outreach, while collectors may see lower intermediary fees as alternative platforms compete with legacy auction models. The shift could spur innovation in how digital works are marketed and sold.

Source: Fanny Lakoubay

Could this be a “Kodak moment” for Christie’s?

Some voices in the NFT community compare the pivot to a “Kodak moment,” arguing that existing auction-house business models may be structurally mismatched to digital goods. Lower overhead digital platforms and marketplaces exert pricing pressure that legacy commission structures struggle to absorb.

Others caution against interpreting the move as a demand collapse for digital art. Instead, they frame it as a commercial recalibration of how institutions participate in the digital-asset economy.

Source: Benji

Frequently Asked Questions

Will Christie’s stop selling NFTs entirely?

No. Christie’s will continue to auction NFTs and digital art, but these sales will be managed within its broader 20th & 21st-century art category rather than a dedicated digital art department.

Does this signal the end of institutional interest in digital art?

Not necessarily. Institutions may recalibrate strategies; they may focus on curated primary-market programs and partnerships instead of standalone departments for digital-sales operations.

How can artists adapt to these market shifts?

Artists should diversify sales channels, prioritize primary-market launches, and engage collectors directly. Building a consistent collector base and leveraging lower-fee platforms can reduce reliance on traditional auction economics.

Key Takeaways

• Structural shift: Christie’s absorbed its digital art team into a broader category while continuing NFT sales.
• Market pressure: A contracting global art market and weaker secondary sales influenced the decision.
• Opportunity for change: The move may accelerate primary-market development and lower-fee alternatives for artists and collectors.

Conclusion

Christie’s decision to close its standalone digital art department reflects a recalibration driven by market contraction and revenue considerations. The auction house will continue to sell NFTs within a larger 20th & 21st-century category, signaling an institutional pivot that could reshape how digital art is marketed and monetized. Watch for increased primary-market initiatives and evolving fee structures.

Published: 2025-09-09 • Updated: 2025-09-09 • Author: COINOTAG