Why should investment funds invest in new gTLDs in 2026?

Investment funds should consider investing in new generic Top-Level Domains (gTLDs) in 2026 primarily because this year marks the second application window for these extensions, creating a fresh cycle of investment opportunities.

This new round, expected to open around April 2026, represents a key opportunity for investors seeking new digital assets and high-growth potential in the domain name space.

Here are the main reasons for investment funds to look at new gTLDs in 2026:

• New Investment Wave (ICANN Application Round): The opening of the second application round by ICANN (the governing body) is the central driver. This allows organizations to apply for and launch their own TLD registries (e.g., .finance, .shop, .ai, or a corporate .brand). Investment funds can participate by:
  • Funding TLD Applications and Operations: Providing the capital needed for the application process (which is expected to be costly) and the subsequent operation of a new registry, targeting high-potential, specific markets (e.g., industry-specific or geographic TLDs).
  • Early-Stage Domain Acquisition: Investing early in promising new extensions before they gain mainstream attention, allowing them to secure valuable domain names within those new TLDs (e.g., premium short names or key-word domains).
• Market Diversification and .COM Saturation: The most valuable traditional .com domains were claimed years ago, making premium digital real estate scarce and expensive. New gTLDs offer:
  • Brand Relevance: They allow companies to secure names that are shorter, more memorable, and instantly brand-relevant by utilizing extensions like .tech, .dev, or .cloud.
  • Alternative Digital Identity: Startups and smaller enterprises are increasingly adopting new gTLDs to establish a clear, professional identity and secure exact brand matches that are unavailable under legacy extensions.
• High-Growth Sector Alignment: Specific new gTLDs align with major global trends, potentially offering high returns:
  • .AI Domains: The global artificial intelligence boom has created massive demand for domains that signal innovation and instant credibility, driving significant premium sales.
  • Industry/Sector-Specific TLDs: Extensions like .finance, .shop, .health, or .dev allow for targeted investment in growing, specialized markets, providing a clear signal to customers about the business's focus.
• Registry Business Model: Investing in the registry itself offers a scalable business model based on recurring revenue from domain name registrations and renewals, similar to a digital utility. The best returns can come not just from domain sales but from security, trust, conversion, and distribution value a TLD brings to its community.

In essence, the 2026 application window represents a time-sensitive chance to own or gain early access to the next generation of digital assets, moving beyond the crowded landscape of traditional domains.

How to Start A Top Level Domain Registry Business? Apply for New gTLD -2026

This video discusses the process, costs, and ROI for starting a Top-Level Domain Registry business, which is directly relevant to investment funds considering applying for or investing in new gTLDs in the 2026 round.