This could be helpful. Instagram has also extended the new Cutout sticker feature to videos, so you can turn any video clip posted in the app into an animated sticker.

Now, aside from being able to cut objects out of still images, you can now cut essentially GIFs from videos as well.
Which could give you a whole lot more creativity in the options, all thanks to the creation of separate stickers of different post elements that you can then share in repeating ways in your stories and reels.

There is one drawback.

As is the case with still image stickers, to make a sticker from a post, the author needs to have posted publicly, while they also need to have allowed permissions for other users to create cutouts from their content. This is opt-in by default, but users can switch this off if they choose, in order to stop people from reusing their images.

Also, if you do somehow successfully design a cut-out sticker based on someone else's post, and the owner eventually deletes the post, your sticker will no longer have anything to refer back to.

So, it raises some more complexities, though as you mentioned, possibly this might spur new forms of creativity and using the media in the application in further ways.

It would be neat to see the extent in which people used this "new" video sticker, so to speak, and maybe if it caused some novel trends within the app as well.

It is launching new option of sticker cut-out in front of all the network users of IG.