NFTZ: first NFT-focused ETF

Thu 02 Dec 2021 ▪ 14h11 ▪ 3 min read — by Susan McCormack

Since conventional crypto ETFs are still far from being approved, Defiance decided to take advantage of one of the hottest blockchain trends and enter the market with an ETF focused on NFTs.

Innovative initiative

The NFT revolution will forever change the economic model for artists, athletes, creators and many other art-related industries that are still to appear in future, prnewswire.com writes.

“NFTs could be bigger than the internet. In October, all time NFT trading volume surpassed $15 billion (£11.3 billion),” says Sylvia Jablonski, Defiance ETF Co-founder and CIO.   

Today, on 2nd December, Defiance ETFs launched the Defiance Digital Revolution ETF fund (ticker NFTZ). “NFTZ is an NFT ETF with relevant thematic exposure to a range of NFT stocks, involved in Non-Fungible Tokens, blockchain and cryptocurrency – together forming the ecosystem in which NFTs thrive. It seeks to track the performance before fees and expenses of a rules-based, weighted Index of such equities,” definanceetfs.com states.

The fund management fee is 0.65%, i.e., £6.50 for each £1,000 invested. The leading positions are held by such companies as Silvergate Capital Corp., Cloudflare, Inc., Bitfarms Ltd., Marathon Digital Holdings Inc., Hut 8 Mining Corp. and Coinbase Global Inc.

The fund is considered undiversified meaning that most of the assets can be invested into securities of one issuer or few issuers, which potentially makes the fund more exposed to risks.

This is one of the first ETFs that has appealed to the emerging NFT market.

The NFTZ fund “is a great way for investors to gain access to not only the fast-growth blockchain technology aspect of the digital world, but companies involved in the renaissance of NFTs,” said Jablonski.

She further added that “NFTs today are what Bitcoin was 10 years ago, except that there is a robust community made up of creators and investors who co-exist to determine the future path of a non-fungible token. They are part of a special club, a membership, and so the investment takes on this new meaning of social interaction.”

The NFT boom made investors turn to non-fungible tokens, yet many hesitate investing into just one or two NFTs as it would be akin to putting all eggs in one basket. If you’re after some gains from NFTs, an NFT-focused ETF seems to be a wise choice.

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Susan McCormack

How many crypto nerds does it take to fork an altcoin? I may be a failed comedian, but crypto is no joke! I want to share my knowledge and help others to see the bright future ahead. #buybitcoin

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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