The first NFT-based ETF to debut on NYSE
Exchange-traded funds based on Bitcoin and other digital currencies are not a new word in the sector; meanwhile, Defiance, an investment and fintech company, has launched an ETF pegged to non-fungible tokens.
The launch of the first NFT-based ETF took place on December 2, and the fund’s shares appeared on NYSE Arca. Shares got the ticker NFTZ, and investors need to pay a 0.65% annual management fee.
Meanwhile, the fund is not involved in direct processes of buying or selling NFTs. The Defiance NFT is pegged to indexes of companies that are related to non-fungible tokens or the Metaverse sector. The fund primarily takes into account the following indexes: BITA NFT and BSI.
As for holders, Playboy Group, Cloudflare, MDI, and other world-known players have already bought shares of the Defiance fund.
Sylvia Jablonski, Defiance CIO, comments on the future potential: “The art sector undergoes the NFT revolution that discloses new opportunities for artists, creators, and athletes. Crowds of industries may capitalize on the boom.”
At the moment of writing NFTZ shares are traded at $23.77. Silvergate Capital is the largest investor with 6.74% of the overall volume of shares.